潍柴动力(02338) 　　Key takeaways 　　Weichai Power’s vice president and board secretary Mr. Dai Lixinattended the 2016 CICC investment forum and spoke withinvestors. Here are the key takeaways. 　　Sales volume of heavy-duty trucks (HDT) has beenexceeding expectations and could extend growthmomentum in 2017 and 2018. We expect full-year salesin 2016 to be 670,000 units, well above the expectations inearly 2016. 　　Weichai has sharp competitive edges; economies ofscale ensure effective cost control. The company’sengines are more endurable than those of its peers, andmajor overhaul is unnecessary during their whole lifespans 　　Weichai continued to increase its stakes in Kion; ithas not reached a consensus on whether to retainEnranger; Dematic is likely to turn profitable in thenear term. Weichai currently owns 40.23% of Kionfollowing sustained share purchase. For Enranger, thecompany has not made a unified decision, and now intendsto reduce loss as much as possible. Dematic reaped growthin Europe and North America in 1H16. 　　Recommendation 　　HD’s profitability improved and earnings beat expectations in 3Q.Weichai could continue to benefit from strong HDT demand inthe near term. Maintain BUY rating on Weichai-A/H, and reiterateour TP of Rmb15 for Weichai-A and HK$15 for Weichai-H. 　　Risks 　　Sustainability of strong HDT demand disappoints.