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China Yuchai International (CYD)
NYSE:CYD
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China Yuchai International
(NYSE:CYD)
Rating:67Neutral
Price Target:
$18.50
▼(-2.84%Downside)
China Yuchai International (CYD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$672.70M
Dividend Yield2.12%
Average Volume (3M)178.88K
Price to Earnings (P/E)15.7
Beta (1Y)0.70
Revenue Growth4.26%
EPS Growth11.69%
CountryUS
Employees8,930
SectorConsumer Cyclical
Sector Strength64
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.30
Shares Outstanding37,518,322
10 Day Avg. Volume129,780
30 Day Avg. Volume178,877
Financial Highlights & Ratios
PEG Ratio-5.68
Price to Book (P/B)0.53
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.00Price Target Upside15.55% Upside
Rating ConsensusHold
Number of Analyst Covering0
China Yuchai International Business Overview & Revenue Model
Company DescriptionChina Yuchai International Limited, through its subsidiaries, manufactures, assembles, and sells diesel and natural gas engines for trucks, buses and passenger vehicles, marine, industrial, and agriculture applications in the People's Republic of China and internationally. It operates through two segments, Yuchai and HLGE. The company provides diesel engines comprising 4- and 6-cylinder diesel engines, high horsepower marine diesel engines, and power generator engines, as well as natural gas engines, diesel power generators, diesel engine parts, and remanufacturing services; and generator sets, as well as plug in hybrid engines, range extenders, power generation powertrains, hybrid powertrains, integrated electric drive axel powertrains, and fuel cell systems. It also engages in the hospitality and property development activities. In addition, the company designs, produces, and sells exhaust emission control systems. It distributes its engines directly to auto original equipment manufacturers, agents, and retailers, as well as provides maintenance and retrofitting services. The company was founded in 1951 and is based in Singapore.
How the Company Makes MoneyChina Yuchai International generates revenue primarily through the sale of diesel and natural gas engines. These engines are utilized in various sectors such as transportation, construction, and agriculture. The company's revenue model is largely dependent on the demand for new vehicles and equipment that require their engines, as well as the need for replacement engines and parts in existing machinery. Additionally, CYD benefits from strategic partnerships with original equipment manufacturers (OEMs) and distribution networks that enhance its market reach. The company's focus on research and development also contributes to its earnings by enabling it to produce more efficient and environmentally friendly engines, thus attracting a broader customer base.
China Yuchai International Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q4-2024)
| % Change Since: -17.79%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong growth in certain segments like marine and gen set engines and profitability in joint ventures, but challenges in China and flat revenue growth in the second half. The company's strategic initiatives, such as share buybacks and expansion in Thailand, demonstrate confidence in its future prospects.Q4-2024 Updates
Positive Updates
Increased Truck and Bus Engine Sales
Truck and bus engine sales rose by 17.2% year-on-year for the full year 2024, outperforming the overall truck and bus vehicle market, which saw a 2.6% decline.
Strong Growth in Marine and Gen Set Engine Sales
Marine and gen set engine sales increased by 25.5% year-over-year, driven by high demand from data centers.
Profitability in Joint Ventures
Investment in associated companies and ventures delivered higher profit, growing by 18.2% year-over-year in second half 2024 and by 53.6% year-over-year for full year 2024.
Inauguration of Yuchai Thailand Operations
Yuchai Thailand commenced production operations, expanding the company's manufacturing capabilities.
Share Buyback and Dividend
The company repurchased 3.3 million shares at a total cost of $39.8 million and paid a cash dividend of $0.03 per ordinary share, reflecting confidence in future growth.
Negative Updates
Flat Revenue Growth in Second Half
Revenue in the second half of 2024 was flat compared to the same period last year.
Challenges in the Chinese Market
The operating environment in China was challenging due to declining property investment and other economic factors.
Slight Decline in Operating Profit
Operating profit decreased slightly in FY 2024, with an operating margin of 3.1% compared to 3.4% in FY 2023.
Increased SG&A Expenses
SG&A expenses rose by 25.1% in the second half of 2024, primarily due to higher trade receivables provisions and increased travel, personnel, and selling expenses.
Company Guidance
During the China Yuchai International Limited conference call for the second half and full year of 2024, several key metrics and insights were provided regarding the company's performance and future outlook. The company's truck and bus engine sales increased by 1.6% year-on-year in the second half and by 17.2% for the full year, outperforming the Chinese market, which saw declines of 9.9% and 2.6% respectively. Operating sales rose by 12.6% year-over-year in the second half and by 9.1% for the full year. Revenue for the year increased by 6.6% to RMB 19.1 billion (USD 2.7 billion), while gross profit rose by 14.3% in the second half and 10.8% for the full year, reaching RMB 2.8 billion (USD 392.1 million). The company also experienced a growth in gross margin to 14.7% due to higher revenue and cost reduction initiatives. The share of profits from associates and joint ventures showed significant growth, with a 63.6% year-over-year increase for the full year. Despite challenges in the Chinese market, including a GDP growth of 5%, the company maintained a strong cash position with balances of RMB 6.4 billion (USD 895 million) as of December 31, 2024. The company also highlighted a successful share repurchase plan and continued investment in R&D, accounting for 6.2% of revenue, focusing on emission standard engines and new energy solutions.China Yuchai International Financial Statement Overview
Summary
The company's financial performance is characterized by moderate revenue growth and improving profitability as reflected in the income statement. However, the margins remain relatively thin, and cash flow management is concerning due to a notable decrease in free cash flow growth. Despite these challenges, a strong balance sheet with low leverage provides stability.Income Statement
The income statement shows a moderate growth trajectory with a revenue increase of 6.03% from 2023 to 2024. Gross profit margin remains healthy at 14.73%, though slightly lower than the previous year. Net profit margin improved to 1.69% in 2024, indicating better profitability, yet still relatively low. The EBIT margin is consistent at 3.12%, and the EBITDA margin is 6.35%, demonstrating stable operational performance. However, revenue fluctuations in previous years highlight potential volatility risks.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 33.89%. The debt-to-equity ratio is low at 0.28, indicating minimal leverage and a healthy balance sheet structure. Return on equity improved to 3.52%, suggesting enhanced efficiency in generating returns on shareholders' investments. Overall, the balance sheet shows financial stability with limited debt exposure.72
Positive
Cash Flow
Cash flow analysis indicates challenges in free cash flow growth, with a notable decrease compared to 2023. The operating cash flow to net income ratio is strong at 2.41, implying efficient cash generation relative to net profits. However, the free cash flow to net income ratio dropped to 0.72, highlighting potential constraints in cash availability for investments and dividends.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 19.13B | 18.05B | 16.03B | 21.27B | 20.58B | Gross Profit |
| 2.82B | 2.92B | 2.52B | 2.77B | 3.19B | EBIT |
| 596.97M | 609.45M | 519.29M | 663.53M | 1.18B | EBITDA |
| 1.22B | 1.33B | 1.11B | 1.14B | 1.61B | Net Income Common Stockholders |
| 323.06M | 285.52M | 218.58M | 272.67M | 548.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.31B | 6.01B | 4.80B | 5.15B | 6.14B | Total Assets |
| 27.05B | 25.76B | 24.14B | 24.91B | 26.29B | Total Debt |
| 2.57B | 2.59B | 2.37B | 2.22B | 2.25B | Net Debt |
| -3.74B | -3.42B | -2.08B | -2.57B | -3.63B | Total Liabilities |
| 14.75B | 13.58B | 12.30B | 13.29B | 14.46B | Stockholders Equity |
| 9.16B | 9.23B | 9.01B | 8.86B | 9.01B |
| Cash Flow | Free Cash Flow | |||
| 234.18M | 988.20M | -550.38M | -67.49M | 830.69M | Operating Cash Flow |
| 779.42M | 1.23B | -119.42M | 504.56M | 1.42B | Investing Cash Flow |
| 113.10M | -113.26M | -133.05M | -738.85M | -785.75M | Financing Cash Flow |
| -526.63M | -33.74M | -140.37M | -838.56M | -461.83M |
China Yuchai International Technical Analysis
Positive
19.04
Price Trends
16.37
Positive
16.24
Positive
13.52
Positive
Market Momentum
0.42
Negative
64.56
Neutral
76.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYD, the sentiment is Positive. The current price of 19.04 is above the 20-day moving average (MA) of 17.52, above the 50-day MA of 16.37, and above the 200-day MA of 13.52, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 64.56 is Neutral, neither overbought nor oversold. The STOCH value of 76.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CYD.
China Yuchai International Risk Analysis
China Yuchai International disclosed 33 risk factors in its most recent earnings report. China Yuchai International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
China Yuchai International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.06B | 48.04 | 5.90% | 0.63% | 2.92% | ― | |
78 Outperform | $7.37B | 36.46 | 15.24% | ― | 10.78% | 30.05% | |
73 Outperform | $44.99B | 16.25 | 27.78% | 2.23% | -0.39% | 47.31% | |
67 Neutral | $672.70M | 15.71 | 3.51% | 2.12% | 4.26% | 11.69% | |
67 Neutral | $7.56B | 22.29 | 14.29% | ― | 8.07% | 58.67% | |
62 Neutral | $6.84B | 11.41 | 2.80% | 3.87% | 2.70% | -24.58% | |
55 Neutral | $639.68M | 43.62 | -24.23% | ― | 100.00% | 6.28% |
* Consumer Cyclical Sector Average
Performance Comparison
CYD
China Yuchai International
19.04
10.60
125.59%
CMI
Cummins
325.68
58.28
21.80%
NPO
Enpro
191.32
45.18
30.92%
GNRC
Generac Holdings
128.46
-12.20
-8.67%
SPXC
SPX
160.00
27.61
20.86%
NPWR
NET Power
2.62
-7.59
-74.34%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.