China Yuchai International (CYD) AI Stock Analysis

• Market Cap: $879.80M
• Dividend Yield: 2.37%
• Average Volume (3M): 197.72K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.71
• Revenue Growth: 4.26%
• EPS Growth: 11.69%
• Country: US
• Employees: 8,930
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 37,518,322
• 10 Day Avg. Volume: 160,505
• 30 Day Avg. Volume: 197,720
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.12
• Enterprise Value/Ebitda: 0.28
• 1Y Price Target: $27.00
• Price Target Upside: 19.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $27.00 ▲(19.52% Upside)

The overall stock score is driven by strong technical indicators and a stable financial performance, despite concerns over cash flow management and valuation. The company's strategic initiatives and earnings call insights indicate potential for future growth, although challenges in the Chinese market and overbought technical indicators present risks.

China Yuchai International Business Overview & Revenue Model

Company Description

China 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 Money

China Yuchai International makes money primarily through the manufacturing and sale of diesel and natural gas engines. The company's revenue model is based on its extensive product portfolio which includes engines for trucks, buses, passenger vehicles, construction equipment, marine vessels, and power generators. Key revenue streams include direct sales to original equipment manufacturers (OEMs), aftermarket sales, and strategic partnerships for technology advancement and distribution. Additionally, the company benefits from its significant market presence in China and its focus on expanding into international markets. Factors such as regulatory compliance with emissions standards and collaborations with other industry players further contribute to its earnings by enhancing product appeal and expanding market reach.

China Yuchai International Financial Statement Overview

Summary

China Yuchai International demonstrates a balanced financial performance with a strong balance sheet backed by low leverage and stable equity. The income statement reflects moderate revenue growth and improving profitability, though margins remain relatively thin. Cash flow management is an area of concern, with declining free cash flow growth rates. Overall, the company maintains a stable financial position with potential for improvement in profitability and cash flow generation.

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.

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.

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.

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
EBITDA	1.22B	1.33B	1.11B	1.14B	1.61B
Net Income	323.06M	285.52M	218.58M	272.67M	548.90M
Balance Sheet
Total Assets	27.05B	25.76B	24.14B	24.91B	26.29B
Cash, Cash Equivalents and Short-Term Investments	6.31B	6.01B	4.80B	5.15B	6.14B
Total Debt	2.57B	2.59B	2.37B	2.22B	2.25B
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

• Technical Analysis Sentiment: Neutral
• Last Price: 22.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYD, the sentiment is Neutral. The current price of 22.59 is below the 20-day moving average (MA) of 23.76, above the 50-day MA of 21.51, and above the 200-day MA of 15.36, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 35.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CYD.

China Yuchai International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	74 Outperform	$9.53B	45.49	15.02%	―	8.90%	29.18%
NPO	71 Outperform	$4.72B	56.09	5.78%	0.58%	4.99%	169.24%
GNRC	71 Outperform	$11.66B	32.21	14.59%	―	9.69%	54.29%
CMI	70 Outperform	$51.41B	17.01	27.56%	1.95%	-0.39%	47.31%
CYD	69 Neutral	$879.80M	20.54	3.51%	2.37%	4.26%	11.69%
Sector *	62 Neutral	AU$3.02B	29.09	4.95%	4.87%	2.19%	-27.19%
NPWR	48 Neutral	$587.10M	43.62	-24.23%	―	100.00%	6.28%