Want to see HK:2338 full AI Analyst Report?
Top Page
Weichai Power Co
(2338)
Select Model
Select Model
Rating:73Outperform
Price Target:
HK$36.00
â–²(14.29% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by solid fundamentals with strong operating and free-cash-flow generation and improving revenue, tempered by higher leverage and only mid-single-digit net margins. Technically, the stock has strong upward trend confirmation but shows overbought momentum (high RSI/Stoch), which raises near-term volatility risk. Valuation is reasonable (P/E ~13.7) with a modest dividend yield (~2.0%).
Positive Factors
Strong cash generation
Sustained operating and free cash flow at scale supports investment, dividends and debt servicing without relying on external financing. FCF running ~0.77x net income shows earnings translate into cash, providing durable internal funding for capex, R&D and strategic initiatives.
Negative Factors
Elevated leverage
Higher leverage materially reduces financial flexibility and increases sensitivity to interest-rate moves and cyclical revenue swings. With debt-to-equity markedly above the prior-year level, the company has less buffer to fund downturns or pursue opportunistic investments without raising costly capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating and free cash flow at scale supports investment, dividends and debt servicing without relying on external financing. FCF running ~0.77x net income shows earnings translate into cash, providing durable internal funding for capex, R&D and strategic initiatives.
Read all positive factors
Weichai Power Co (2338) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$261.31B
Dividend Yield3.98%
Average Volume (3M)14.08M
Price to Earnings (P/E)18.8
Beta (1Y)0.80
Revenue Growth11.60%
EPS Growth1.00%
CountryHK
Employees101,440
SectorConsumer Cyclical
Sector Strength84
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.61
Shares Outstanding1,943,040,000
10 Day Avg. Volume13,947,328
30 Day Avg. Volume14,078,704
Financial Highlights & Ratios
PEG Ratio-2.56
Price to Book (P/B)1.57
Price to Sales (P/S)0.65
P/FCF Ratio6.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$48.93Price Target Upside55.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.67
Revenue Forecast (FY)HK$255.39B
Weichai Power Co Business Overview & Revenue Model
Company Description
Weichai Power Co., Ltd. is a global enterprise specializing in the production and distribution of diesel engines, vehicles, and a wide array of automotive components. The company organizes its extensive operations across three key segments: Engine...
How the Company Makes Money
Weichai Power primarily makes money by selling powertrain products and related equipment to original equipment manufacturers (OEMs) and end customers. Key revenue streams include: (1) Engines and power generation products: revenue from the sale of...
Weichai Power Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 235.99B | 225.55B | 215.69B | 213.96B | 175.16B | 203.55B |
| Gross Profit | 49.51B | 45.53B | 48.39B | 44.21B | 31.15B | 39.60B |
| EBITDA | 23.48B | 27.11B | 33.84B | 28.42B | 18.55B | 23.38B |
| Net Income | 11.27B | 10.65B | 11.40B | 9.01B | 4.91B | 9.49B |
Balance Sheet | ||||||
| Total Assets | 372.80B | 381.02B | 343.88B | 334.25B | 293.67B | 277.04B |
| Cash, Cash Equivalents and Short-Term Investments | 79.49B | 83.54B | 88.56B | 104.28B | 82.71B | 81.43B |
| Total Debt | 27.69B | 96.97B | 22.21B | 48.03B | 49.09B | 36.85B |
| Total Liabilities | 239.17B | 246.83B | 221.92B | 221.56B | 189.56B | 174.08B |
| Stockholders Equity | 95.37B | 93.23B | 86.70B | 79.34B | 73.18B | 70.91B |
Cash Flow | ||||||
| Free Cash Flow | 24.68B | 22.04B | 18.73B | 20.27B | -8.98B | 8.65B |
| Operating Cash Flow | 30.98B | 28.66B | 26.09B | 27.47B | -2.35B | 14.66B |
| Investing Cash Flow | -6.67B | -16.45B | -28.91B | -5.74B | -8.55B | -5.41B |
| Financing Cash Flow | -18.47B | -18.31B | -13.84B | -13.03B | 4.85B | 3.12B |
Weichai Power Co Technical Analysis
Negative
31.50
Price Trends
37.55
Negative
34.34
Negative
26.90
Positive
Market Momentum
-1.47
Positive
32.07
Neutral
7.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2338, the sentiment is Negative. The current price of 31.5 is below the 20-day moving average (MA) of 35.07, below the 50-day MA of 37.55, and above the 200-day MA of 26.90, indicating a neutral trend. The MACD of -1.47 indicates Positive momentum. The RSI at 32.07 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2338.
Weichai Power Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$261.31B | 18.78 | 13.21% | 3.98% | 11.60% | 1.00% | |
62 Neutral | HK$32.05B | 9.71 | 15.71% | 1.44% | 19.22% | 58.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | HK$6.85B | 7.06 | 8.89% | 2.50% | 12.91% | 76.99% | |
53 Neutral | HK$99.03B | 19.90 | 9.53% | 1.69% | 13.65% | 24.19% | |
53 Neutral | HK$103.60B | 76.80 | 2.38% | ― | 11.01% | 30.24% | |
46 Neutral | HK$81.77B | 23.14 | 7.95% | 1.14% | 29.06% | 50.69% |
* Consumer Cyclical Sector Average
HK:2338
Weichai Power Co
29.78
13.20
79.65%
HK:1072
Dongfang Electric
20.36
-3.65
-15.19%
HK:2727
Shanghai Electric Group Company
3.08
-0.17
-5.11%
HK:2208
Xinjiang Goldwind Science & Technology Co
9.26
1.92
26.09%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.71
0.12
7.55%
HK:1133
Harbin Electric Co. Ltd. Class H
13.35
5.64
73.13%
Weichai Power Co Corporate Events
Weichai Power Sets Timetable and Payout for 2025 Final Dividend
Jul 3, 2026
Weichai Power Co., Ltd. has confirmed the timetable for its 2025 final cash dividend for holders of both A shares and H shares, following shareholder approval at its annual general meeting. The company has set out key dates including the last cum-...
Weichai Power Updates 2025 Final Dividend Details and Tax Arrangements
Jul 3, 2026
Weichai Power Co., Ltd. has updated details of its final cash dividend for the year ended 31 December 2025, declaring a payout of RMB 3.74 per 10 shares, with Hong Kong investors to receive HKD 4.302 per 10 shares based on a set exchange rate. The...
Weichai Power reshapes board as veteran director retires and new executive is nominated
Jul 3, 2026
Weichai Power announced that executive director Yuan Hongming will resign from the board and the company’s Strategic Development and Investment Committee with effect from 3 July 2026, as he has reached the statutory retirement age. The board...
Weichai Power Raises Caps and Extends Key Connected Transactions
Jul 3, 2026
Weichai Power Co., Ltd., a leading Chinese powertrain and heavy machinery producer, relies on extensive supply and purchase agreements with related parties such as Shaanxi Automotive, Weichai Heavy Machinery and CNHTC to support its engine and equ...
Weichai Power Updates Board Composition and Governance Structure
Jul 3, 2026
Weichai Power Co., Ltd., a Hong Kong-listed Chinese joint stock company, operates in the powertrain and heavy equipment manufacturing sector, providing engines and power systems to commercial vehicle, construction and industrial markets at home an...
Weichai Power Wins Strong Shareholder Backing at AGM, Adds Independent Director
Jun 22, 2026
Weichai Power Co., Ltd. reported that shareholders approved all resolutions presented at its 22 June 2026 annual general meeting, including the 2025 board report, annual report, audited financial statements and director remuneration. Investors als...
Weichai Power Details Board Composition and Committee Roles
Jun 22, 2026
Weichai Power Co., Ltd. has announced the current composition of its board of directors, detailing executive, non-executive, independent and employee representative roles, with Ma Changhai serving as chairman and Wang Decheng as general manager. T...
Weichai Power to Replace Long-Serving Independent Director Ahead of Regulatory Term Limit
May 28, 2026
Weichai Power announced that independent non-executive director Jiang Yan will retire at the forthcoming annual general meeting, as her six-year term approaches the regulatory limit set by Chinese authorities. She will also step down as chair of t...
Weichai Power Sets 2025 AGM to Approve Dividend, Auditors and Board Changes
May 28, 2026
Weichai Power has called its 2025 annual general meeting for June 22, 2026 in Weifang, Shandong, where shareholders will review the 2025 board report, annual report and audited financial statements, and confirm directors’ remuneration for 20...
Weichai Power Completes A-Share Buyback Without Impacting Control
May 19, 2026
Weichai Power has completed its A-share repurchase plan via centralized price bidding, buying back 50,252,475 shares between June and September 2025, equal to about 0.58% of its total share capital. The company paid roughly RMB761.5 million, withi...
Weichai Power Files Unaudited First-Quarter 2026 Report With Governance Assurances
Apr 29, 2026
Weichai Power has released its unaudited first quarterly report for 2026, stating that the board, senior management, and key accounting officers collectively guarantee the authenticity, accuracy, and completeness of the disclosed financial informa...
Weichai Power Reallocates A-Share Proceeds to Boost High-End Engine Project and Working Capital
Apr 29, 2026
Weichai Power Co., Ltd. has approved a change in the allocation of proceeds from its earlier non-public A-share issuance, shifting RMB1 billion away from its Full Series Hydraulic Pressure Powertrain and Large-Scale CVT Powertrain Industrialisatio...
Weichai Power Sets Board Meeting to Review First-Quarter 2026 Results
Apr 17, 2026
Weichai Power has scheduled a board meeting for 29 April 2026 to review and potentially approve the unaudited consolidated results for the quarter ended 31 March 2026. The move signals the company’s adherence to regular financial disclosure ...
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.