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Hong Leong Asia ( (SG:H22) ) has issued an update.
China Yuchai reported a strong rebound in the second half of 2025, driven by surging demand for its engines in commercial vehicles and off-road applications. The company’s engine sales notably outperformed the broader truck and bus market, underscoring its competitive position in China’s powertrain sector.
For 2H 2025, revenue climbed 33.5% year over year to RMB 11.8 billion, supported by a 28.7% increase in engine units sold to 210,913. Profitability improved sharply, with gross profit up 58.4%, operating profit up 193.1%, and earnings per share more than doubling, reflecting a richer sales mix and stronger cost efficiency.
Truck and bus engine sales rose 49.2%, far exceeding the 13.0% market growth reported by CAAM, highlighting market share gains in core on-road segments. Off-road engine sales also advanced, led by more than 22% growth in industrial, marine and genset units, partially offset by weaker agricultural demand, indicating diversified demand drivers but ongoing pressure in the farming sector.
The sharp lift in gross margin to 18.9%, from 15.9% a year earlier, points to improved pricing power and operational leverage as volumes recover. The overall performance signals a solid earnings recovery and bolsters China Yuchai’s standing against domestic engine peers, with positive implications for shareholders and commercial vehicle OEM partners reliant on its powertrain solutions.
The most recent analyst rating on (SG:H22) stock is a Hold with a S$3.50 price target. To see the full list of analyst forecasts on Hong Leong Asia stock, see the SG:H22 Stock Forecast page.
More about Hong Leong Asia
China Yuchai International Limited, listed on the NYSE, is one of China’s largest powertrain solution manufacturers through its main operating subsidiary Guangxi Yuchai Machinery Company Limited. The company focuses on producing diesel and other engines for trucks, buses, off-road equipment, industrial applications, as well as marine and genset markets, serving both on-road and off-road vehicle segments in China.
Average Trading Volume: 1,307,677
Technical Sentiment Signal: Buy
Current Market Cap: S$2.56B
For detailed information about H22 stock, go to TipRanks’ Stock Analysis page.