Weichai Power Co (2338) AI Stock Analysis

• Market Cap: HK$168.66B
• Dividend Yield: 3.88%
• Average Volume (3M): 14.08M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.68
• Revenue Growth: 3.55%
• EPS Growth: 8.89%
• Country: HK
• Employees: 97,288
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 0.36
• Shares Outstanding: 1,943,040,000
• 10 Day Avg. Volume: 13,947,328
• 30 Day Avg. Volume: 14,078,704
• PEG Ratio: 0.17
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 2.73
• 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: HK$23.03
• Price Target Upside: 15.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$16.50 ▼(-16.96% Downside)

Weichai Power Co's strong financial performance and fair valuation are the primary drivers of its overall score. The technical analysis indicates bullish momentum, though the high RSI suggests caution due to potential overbought conditions. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Steady revenue growth indicates resilience and the ability to maintain market position, supporting long-term business sustainability.

Cash Generation

Effective cash generation from operations enhances financial flexibility and supports strategic investments and debt management.

Profitability

Improved profit margins reflect efficient cost management and operational effectiveness, contributing to long-term profitability.

Negative Factors

Shareholder Returns

Moderate ROE suggests potential for improvement in generating shareholder value, indicating room for enhancing returns.

Free Cash Flow

A decrease in free cash flow could limit the company's ability to fund new projects or return capital to shareholders, affecting growth.

Equity Ratio

While stable, a relatively low equity ratio may limit financial flexibility, impacting the company's ability to leverage opportunities.

Weichai Power Co Business Overview & Revenue Model

Company Description

Weichai Power Co., Ltd. (stock code: 2338) is a leading Chinese manufacturer of powertrains and industrial engines, primarily focusing on the production of engines, gearboxes, and related components for vehicles, construction machinery, and marine applications. The company operates in multiple sectors, including automotive, power machinery, and new energy, with a strong emphasis on innovation and technology development in the energy sector. Weichai is known for its diverse product portfolio, which includes diesel engines, natural gas engines, and hybrid power systems, catering to both domestic and international markets.

How the Company Makes Money

Weichai Power generates revenue primarily through the sale of its engines and components to various industries, including automotive, construction, and marine sectors. The company has established key revenue streams from the production and sale of heavy-duty and light-duty engines, gearboxes, and complete power systems. Additionally, Weichai benefits from service and maintenance contracts, which provide ongoing income after the initial sale. Significant partnerships with domestic and international vehicle manufacturers, as well as investments in research and development for new energy solutions, further enhance its revenue potential. The company's strategic initiatives in expanding its footprint in foreign markets also contribute to its overall earnings.

Weichai Power Co Financial Statement Overview

Summary

Weichai Power Co exhibits strong financial health with steady revenue growth, improved profitability, and effective cash flow management. The balance sheet is robust with manageable leverage, though there is room for enhancing shareholder returns.

Income Statement

Weichai Power Co has demonstrated strong revenue growth with a 1% increase from 2023 to 2024. The gross profit margin improved slightly to 22.44% in 2024, reflecting efficient cost management. The net profit margin also increased to 5.29%, indicating enhanced profitability. EBIT and EBITDA margins are solid, suggesting a robust operational performance.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 25.22%, indicative of financial stability. The debt-to-equity ratio decreased to 0.26, showing improved leverage management. However, the return on equity is moderate at 13.15%, suggesting potential for further improvement in generating shareholder value.

Cash Flow

Operating cash flow to net income ratio is strong at 2.29, showing effective cash generation from operations. Although free cash flow decreased slightly, the company maintains a healthy cash position. The free cash flow to net income ratio of 1.64 indicates robust cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	229.63B	215.69B	213.96B	175.16B	203.55B	197.49B
Gross Profit	51.49B	48.39B	44.21B	31.15B	39.60B	38.14B
EBITDA	21.53B	33.84B	28.42B	18.55B	23.38B	22.63B
Net Income	12.18B	11.40B	9.01B	4.91B	9.49B	9.23B
Balance Sheet
Total Assets	398.20B	343.88B	334.25B	293.67B	277.04B	270.75B
Cash, Cash Equivalents and Short-Term Investments	90.02B	88.56B	104.28B	82.71B	81.43B	68.07B
Total Debt	98.74B	22.21B	48.03B	49.09B	36.85B	44.97B
Total Liabilities	254.32B	221.92B	221.56B	189.56B	174.08B	190.32B
Stockholders Equity	102.80B	86.70B	79.34B	73.18B	70.91B	51.20B
Cash Flow
Free Cash Flow	21.59B	18.73B	20.27B	―	8.65B	17.16B
Operating Cash Flow	16.25B	26.09B	27.47B	―	14.66B	22.93B
Investing Cash Flow	-14.06B	-28.91B	-5.74B	―	―	―
Financing Cash Flow	-13.41B	-13.84B	-13.03B	4.85B	3.12B	―

Weichai Power Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.87
• 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 HK:2338, the sentiment is Positive. The current price of 19.87 is above the 20-day moving average (MA) of 19.42, above the 50-day MA of 17.89, and above the 200-day MA of 15.88, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2338.

Weichai Power Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1072	75 Outperform	HK$85.18B	21.19	7.71%	1.88%	20.99%	-5.99%
2338	74 Outperform	HK$168.66B	13.22	12.91%	3.88%	3.55%	8.89%
2208	74 Outperform	HK$72.80B	28.03	6.78%	1.14%	25.84%	26.05%
1133	74 Outperform	HK$33.95B	14.20	15.06%	1.62%	34.78%	98.79%
2722	65 Neutral	HK$7.07B	11.38	7.29%	2.56%	11.18%	46.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2727	54 Neutral	HK$127.06B	53.68	1.93%	―	7.59%	376.62%

Weichai Power Co Corporate Events

Weichai Power Co. Elects New Employee Representative Director

Weichai Power Co., Ltd. announced the election of Mr. Huang Weibiao as an Employee Representative Director, effective from December 4, 2025, until the end of the annual general meeting in 2026. This move is part of the company’s efforts to enhance its corporate governance structure. Mr. Huang, who has extensive experience in human resources management, will continue to serve on the environmental, social, and governance committee, underscoring the company’s commitment to these areas. The election is not expected to impact the company’s operations significantly, and Mr. Huang will not receive additional remuneration for his new role.

Weichai Power Announces Board Composition and Committee Roles

Weichai Power Co., Ltd. has announced the composition of its board of directors and the roles within various committees. The board comprises executive, non-executive, and independent non-executive directors, with Ma Changhai serving as Chairman. The announcement highlights the company’s structured governance approach, potentially enhancing its strategic decision-making and operational oversight, which could positively impact stakeholders and strengthen its industry position.

Weichai Power Enters Manufacturing Agreement with Ceres Power

Weichai Power Co., Ltd. has announced a manufacturing license agreement with Ceres Power Holdings plc to establish a facility for producing cells and stacks for stationary power markets. This strategic move aims to enhance Weichai’s capabilities in providing power solutions for AI data centers and industrial applications, potentially strengthening its market position and operational scope.

Weichai Power Co. Reports Unusual Share Price and Volume Movements

Weichai Power Co., Ltd. has observed an unusual increase in both the price and trading volume of its shares. The company’s board of directors has stated that they are unaware of any specific reasons for these movements and have advised shareholders and investors to exercise caution when dealing with the company’s shares.

Weichai Power Co., Ltd. Approves Key Resolutions at Extraordinary General Meeting

Weichai Power Co., Ltd. announced the successful approval of several resolutions during their Extraordinary General Meeting held on October 31, 2025. These resolutions include amendments to decision-making rules on connected transactions, management measures on the use of proceeds, and investment and operations rules. Additionally, new agreements regarding the sale and purchase of products and services with Weichai Holdings were approved, indicating a strategic move to enhance operational efficiency and strengthen business relationships. The approval of these resolutions is expected to positively impact the company’s operational capabilities and market positioning.

Weichai Power Co. Releases 2025 Q3 Report Highlighting Transparency

Weichai Power Co., Ltd. has released its third quarterly report for 2025, ensuring stakeholders of the authenticity, accuracy, and completeness of the disclosed information. The report, which has not been audited, emphasizes the company’s commitment to transparency and legal compliance, reflecting its stable position in the market and dedication to maintaining investor trust.

Weichai Power Adjusts A Share Repurchase Price Following Profit Distribution

Weichai Power Co., Ltd. announced an adjustment to the repurchase price of its A Shares under the A Share Repurchase Plan, reducing the price cap from RMB23.22 to RMB22.86 following the company’s 2025 interim profit distribution. This adjustment reflects the company’s ongoing financial strategies and market responsiveness, impacting its shareholders and potential investors by aligning the repurchase plan with current market conditions and profit distribution outcomes.

Weichai Power Schedules Board Meeting to Review Financial Results

Weichai Power Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to review and potentially approve the unaudited consolidated financial results for the nine months ending September 30, 2025. This meeting could have significant implications for the company’s financial transparency and stakeholder confidence, as it will provide insights into the company’s performance and strategic direction.

Weichai Power Co. Announces Extraordinary General Meeting for Strategic Approvals

Weichai Power Co., Ltd. has announced an extraordinary general meeting scheduled for October 31, 2025, to seek shareholder approval for several proposed amendments and agreements. These include changes to decision-making rules on connected transactions, management measures on the use of proceeds, and various sale and purchase agreements with associated companies. The approval of these resolutions is expected to streamline operations and enhance the company’s strategic partnerships, potentially impacting its market positioning and stakeholder relations.

Weichai Power Announces EGM and Register Closure for Governance Amendments

Weichai Power Co., Ltd. has announced the closure of its register of members in preparation for an extraordinary general meeting (EGM) scheduled for October 31, 2025. The meeting will address proposed amendments to corporate governance policies and new framework agreements concerning non-exempt continuing connected transactions. Shareholders must ensure their eligibility to vote by lodging transfer documents by October 24, 2025. This move is part of Weichai Power’s efforts to strengthen its governance and operational agreements, potentially impacting its market positioning and stakeholder relations.

Weichai Power Announces Interim Dividend Payment Schedule for 2025

Weichai Power Co., Ltd. has announced the timetable for the payment of interim cash dividends for its H Shareholders, with key dates set for September and October 2025. The dividends will be declared in RMB and paid in Hong Kong Dollars, with the exchange rate determined by the People’s Bank of China. This announcement is part of Weichai Power’s ongoing efforts to provide value to its shareholders and maintain its competitive position in the market.

Weichai Power Updates Interim Dividend Details for 2025

Weichai Power Co., Ltd. announced an update to its interim dividend for the six months ending June 30, 2025, declaring a dividend of RMB 3.58 per 10 shares. The announcement includes details on the book close period, record date, payment date, and withholding tax information, impacting shareholders and investors involved in Southbound and Northbound Trading. The dividend will be paid in Hong Kong dollars, with specific tax obligations outlined for different investor categories, reflecting the company’s commitment to transparent financial practices.