Citi has issued a research report indicating that Generac (GNRC.US) has entered into a long-term supply agreement with Amazon to provide backup generators for the e-commerce giant's data centers. Following this development, the bank has reaffirmed its "Buy" rating on Weichai Power (02338) with a target price of HK$50.

The report highlights that initial delivery volumes are expected to total $2.4 billion combined for the years 2027 and 2028. Citi views this as a positive development for Weichai Power, given its role as a core supplier to Generac. The company is well-positioned to benefit from sustained growth in backlog orders, with estimated revenue contributions ranging from $478 million to $1.075 billion from these potential shipments in 2027 and 2028.