China Yuchai International (CYD) AI Stock Analysis

• Market Cap: $672.70M
• Dividend Yield: 2%
• Average Volume (3M): 178.88K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.70
• Revenue Growth: 4.26%
• EPS Growth: 11.69%
• Country: US
• Employees: 8,930
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Industrial - Machinery
• EPS (TTM): 0.30
• Shares Outstanding: 37,518,322
• 10 Day Avg. Volume: 129,780
• 30 Day Avg. Volume: 178,877
• PEG Ratio: -0.46
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 13.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $18.50 ▼(-4.19%Downside)

China Yuchai International's overall stock score reflects a balanced financial performance with strong balance sheet fundamentals and moderate revenue growth. Technical indicators suggest positive momentum, while valuation metrics imply a fair price. The earnings call highlights growth in key segments and strategic initiatives that bolster future confidence, despite challenges in the Chinese market and flat revenue growth in the second half.

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 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 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.

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
	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

• Technical Analysis Sentiment: Positive
• Last Price: 19.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.31 is above the 20-day moving average (MA) of 17.61, above the 50-day MA of 16.42, and above the 200-day MA of 13.56, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 66.10 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CYD.

China Yuchai International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPO	78 Outperform	$4.06B	48.04	5.90%	0.63%	2.92%	―
SPXC	78 Outperform	$7.37B	36.99	15.24%	―	10.78%	30.05%
CMI	73 Outperform	$44.99B	16.25	27.78%	2.23%	-0.39%	47.31%
CYD	67 Neutral	$672.70M	15.71	3.51%	2.00%	4.26%	11.69%
GNRC	67 Neutral	$7.56B	22.37	14.29%	―	8.07%	58.67%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%
NPWR	55 Neutral	$639.68M	43.62	-24.23%	―	100.00%	6.28%