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China Yuchai International (CYD)
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China Yuchai International (CYD) AI Stock Analysis

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CYD

China Yuchai International

(NYSE:CYD)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
$36.00
▼(-8.65% Downside)
The overall stock score of 60 reflects a balanced view of China Yuchai International's financial stability and technical momentum. The strong balance sheet and moderate revenue growth are positive factors, but thin profit margins and declining cash flow growth present challenges. The technical analysis indicates strong momentum, though overbought signals suggest caution. Valuation metrics show the stock is fairly valued, with a modest dividend yield.

China Yuchai International (CYD) vs. SPDR S&P 500 ETF (SPY)

China Yuchai International Business Overview & Revenue Model

Company DescriptionChina Yuchai International Limited (CYD) is a leading manufacturer of diesel engines for various applications, including commercial vehicles, construction machinery, and agricultural equipment. The company primarily operates through its subsidiary, Guangxi Yuchai Machinery Company Limited, which produces a wide range of engines known for their reliability and performance. CYD focuses on the development of advanced engine technologies, including engines that meet stringent emission standards, and is positioned to benefit from the growing demand for efficient and environmentally friendly power solutions in China and other markets.
How the Company Makes MoneyChina Yuchai International generates revenue primarily through the sale of diesel engines and related components. The company has established a solid revenue model based on the production and sales of its engines to domestic and international customers in various sectors, including transportation, construction, and agriculture. Key revenue streams include direct sales of engines, aftermarket parts, and service contracts. Additionally, CYD benefits from partnerships with vehicle manufacturers and equipment producers, which enhance its market reach and product offerings. The company's focus on innovation, including the development of engines that comply with evolving environmental regulations, also contributes to its competitive advantage and revenue growth.

China Yuchai International Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
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
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
65
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.13B18.05B16.03B21.27B20.58B
Gross Profit2.82B2.92B2.19B2.77B3.19B
EBITDA1.17B1.33B1.11B1.14B1.61B
Net Income323.06M285.52M218.58M272.67M548.90M
Balance Sheet
Total Assets27.05B25.76B24.14B24.91B26.29B
Cash, Cash Equivalents and Short-Term Investments6.31B6.01B4.80B5.15B6.14B
Total Debt2.57B2.59B2.40B2.24B2.27B
Total Liabilities14.75B13.58B12.30B13.29B14.46B
Stockholders Equity9.16B9.23B9.01B8.86B9.01B
Cash Flow
Free Cash Flow234.18M988.20M-550.38M-67.49M830.69M
Operating Cash Flow779.42M1.23B-119.42M504.56M1.42B
Investing Cash Flow113.10M-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
Positive
Last Price39.41
Price Trends
50DMA
33.81
Positive
100DMA
27.44
Positive
200DMA
21.07
Positive
Market Momentum
MACD
1.57
Positive
RSI
57.47
Neutral
STOCH
29.96
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 39.41 is below the 20-day moving average (MA) of 39.92, above the 50-day MA of 33.81, and above the 200-day MA of 21.07, indicating a neutral trend. The MACD of 1.57 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 29.96 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$9.63B27.7314.59%9.69%54.29%
71
Outperform
$59.82B20.4227.56%1.71%-1.30%53.39%
71
Outperform
$4.92B58.455.78%0.54%4.99%169.24%
70
Outperform
$7.45B40.40-4.70%0.28%64.69%-112.14%
66
Neutral
$7.09B17.4612.06%-1.70%10.24%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
$1.48B24.084.73%1.35%18.01%39.01%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CYD
China Yuchai International
39.39
27.39
228.25%
CMI
Cummins
436.35
110.04
33.72%
NPO
Enpro
224.08
63.40
39.46%
GNRC
Generac Holdings
171.33
-0.96
-0.56%
JBTM
JBT Marel
145.00
48.89
50.87%
MIDD
The Middleby
135.16
2.26
1.70%

China Yuchai International Corporate Events

China Yuchai Considers Foreign Listing for Subsidiary
Aug 25, 2025

On August 25, 2025, China Yuchai International Limited announced that one of its indirect subsidiaries is considering a potential listing on a foreign stock exchange. The process is in its preliminary stages, with due diligence and other preparatory work underway. The listing’s success will depend on various factors, including market conditions and regulatory approvals. This potential listing could enhance the company’s market presence and provide additional capital for expansion, impacting stakeholders and the company’s strategic positioning.

China Yuchai Reports Strong Growth in 1H 2025 Financial Results
Aug 8, 2025

On August 8, 2025, China Yuchai International announced its unaudited financial results for the first half of 2025, showing significant growth across various metrics. Revenue rose by 34% to RMB 13.8 billion, with a 29.9% increase in engine sales, driven by strong performance in truck and bus engine segments despite market declines. The company’s strategic expansion into ASEAN markets and diversification into multiple end markets contributed to its robust financial performance, with net profit attributable to equity holders increasing by 52.2% to RMB 365.8 million.

China Yuchai to Release First-Half 2025 Financial Results on August 8
Jul 28, 2025

On July 28, 2025, China Yuchai International announced it will release its unaudited financial results for the first half of 2025 on August 8, 2025. The announcement includes plans for a conference call and webcast to discuss the results, hosted by the company’s President and CFO. This event is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 07, 2025