Weichai Power Co Ltd Class H (HK:2338)
:2338
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Weichai Power Co
(2338)
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Rating:61Neutral
Price Target:
HK$28.00
▼(-3.78% Downside)
Action:ReiteratedDate:03/28/26
The score is primarily driven by solid financial performance (strong top-line growth and positive free cash flow) but is held back by the sharp increase in leverage and softer margins. Technical indicators point to weak near-term momentum, while valuation is reasonable with a supportive dividend yield.
Positive Factors
Strong revenue growth
A +56.2% revenue increase in 2025 indicates meaningful demand recovery or market share gains across core end markets. Durable top-line momentum supports operating scale, funds needed R&D and capex for electrification, and strengthens the company's ability to absorb cyclical shocks over the next several quarters.
Negative Factors
Sharply increased financial leverage
Total debt rose materially in 2025, pushing leverage to ~1.04. Higher debt reduces financial flexibility, raises interest and refinancing risk, and limits the company's capacity to fund growth or weather a downturn without sacrificing investment, dividends, or needing external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
A +56.2% revenue increase in 2025 indicates meaningful demand recovery or market share gains across core end markets. Durable top-line momentum supports operating scale, funds needed R&D and capex for electrification, and strengthens the company's ability to absorb cyclical shocks over the next several quarters.
Read all positive factors
Weichai Power Co (2338) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$241.21B
Dividend Yield3.98%
Average Volume (3M)14.08M
Price to Earnings (P/E)13.7
Beta (1Y)0.69
Revenue Growth3.55%
EPS Growth8.89%
CountryHK
Employees97,288
SectorConsumer Cyclical
Sector Strength84
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.27
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$34.72Price Target Upside19.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.62
Revenue Forecast (FY)HK$250.16B
Weichai Power Co Business Overview & Revenue Model
Company Description
Weichai Power Co., Ltd. manufactures and sells diesel engines, automobiles, and other automobile components in China and internationally. It operates through Engines, Automobiles and Automobile Components, and Intelligent Logistics segments. The c...
How the Company Makes Money
Weichai Power generates revenue primarily through the sale of its engine products and powertrain systems, catering to various industries including transportation, construction, and marine applications. Key revenue streams include the sale of diese...
Weichai Power Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 225.55B | 215.69B | 213.96B | 175.16B | 203.55B |
| Gross Profit | 45.53B | 48.39B | 44.21B | 31.15B | 39.60B |
| EBITDA | 27.11B | 33.84B | 28.42B | 18.55B | 23.38B |
| Net Income | 10.65B | 11.40B | 9.01B | 4.91B | 9.49B |
Balance Sheet | |||||
| Total Assets | 381.02B | 343.88B | 334.25B | 293.67B | 277.04B |
| Cash, Cash Equivalents and Short-Term Investments | 83.54B | 88.56B | 104.28B | 82.71B | 81.43B |
| Total Debt | 96.97B | 22.21B | 48.03B | 49.09B | 36.85B |
| Total Liabilities | 246.83B | 221.92B | 221.56B | 189.56B | 174.08B |
| Stockholders Equity | 93.23B | 86.70B | 79.34B | 73.18B | 70.91B |
Cash Flow | |||||
| Free Cash Flow | 22.04B | 18.73B | 20.27B | -8.98B | 8.65B |
| Operating Cash Flow | 28.66B | 26.09B | 27.47B | -2.35B | 14.66B |
| Investing Cash Flow | -16.45B | -28.91B | -5.74B | -8.55B | -5.41B |
| Financing Cash Flow | -18.31B | -13.84B | -13.03B | 4.85B | 3.12B |
Weichai Power Co Technical Analysis
Positive
29.10
Price Trends
28.73
Positive
24.29
Positive
19.92
Positive
Market Momentum
-0.24
Negative
52.66
Neutral
84.10
Negative
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 29.1 is above the 20-day moving average (MA) of 28.41, above the 50-day MA of 28.73, and above the 200-day MA of 19.92, indicating a bullish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$46.34B | 12.86 | 15.55% | 1.44% | 34.78% | 98.79% | |
63 Neutral | HK$134.61B | 19.53 | 7.88% | 1.69% | 20.99% | -5.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$241.21B | 13.71 | 13.21% | 3.98% | 3.55% | 8.89% | |
58 Neutral | HK$8.92B | 7.99 | 8.82% | 2.50% | 11.18% | 46.57% | |
54 Neutral | HK$100.65B | 18.64 | 6.78% | 1.14% | 25.84% | 26.05% | |
48 Neutral | HK$121.29B | 44.90 | 2.23% | ― | 7.59% | 376.62% |
* Consumer Cyclical Sector Average
HK:2338
Weichai Power Co
29.10
14.87
104.44%
HK:1072
Dongfang Electric
35.34
26.29
290.41%
HK:2727
Shanghai Electric Group Company
3.81
1.44
60.76%
HK:2208
Xinjiang Goldwind Science & Technology Co
13.58
9.58
239.67%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
2.42
1.60
196.57%
HK:1133
Harbin Electric Co. Ltd. Class H
20.72
17.04
462.89%
Weichai Power Co Corporate Events
Weichai Power Grows Revenue in 2025 but Faces Margin Pressure
Mar 26, 2026
Weichai Power reported revenue of approximately RMB231.8 billion for 2025, a 7.5% increase from the previous year, driven by higher sales despite rising costs and operating expenses. Net profit attributable to shareholders fell 4.1% to about RMB10...
Weichai Power to Cancel 21.9 Million Restricted Shares After Missing Profit Target
Mar 26, 2026
Weichai Power plans to repurchase and cancel 21,924,000 A-share restricted shares that were granted but not unlocked under its Restricted Share Incentive Scheme, after failing to meet the company-level performance targets for the second unlocking ...
Weichai Power Proposes 2025 Final Dividend and Details Tax Treatment for Cross-Border Investors
Mar 26, 2026
Weichai Power Co., Ltd. has proposed a final ordinary cash dividend of RMB 3.74 per 10 shares for the financial year ended 31 December 2025, subject to shareholder approval. Key distribution details for Hong Kong investors, including the HKD payme...
Weichai Power Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 16, 2026
Weichai Power Co., Ltd. has scheduled a board meeting for 26 March 2026 to review and approve the audited annual results for the year ended 31 December 2025, with plans to publish the figures on both the Hong Kong Stock Exchange and the company...
Weichai Power Boosts Capital in New Energy Subsidiary via Connected Transaction
Mar 12, 2026
Weichai Power will inject RMB412.3 million, alongside RMB176.7 million from Sinotruk Hydrogen Energy, into Weichai New Energy Power Technology, a jointly owned subsidiary focused on new energy power technologies. The RMB589 million cash infusion w...
Weichai Power Shareholders Approve Governance Changes and New Directors at EGM
Jan 30, 2026
Weichai Power Co., Ltd. announced that all resolutions proposed at its extraordinary general meeting on 30 January 2026 were approved by poll, including an extension of a non-competition undertaking by Shandong Heavy Industry and the election of t...
Weichai Power Outlines Board Composition and Committee Roles
Jan 30, 2026
Weichai Power Co., Ltd. has announced the composition of its board of directors, naming executive, non-executive, independent non-executive, and an employee representative director, and clarifying the roles of its chairman and general manager. The...
Weichai Power Announces Board Lineup and Committee Structure
Jan 12, 2026
Weichai Power Co., Ltd. has announced the current composition of its board of directors, naming Chairman Ma Changhai, General Manager Wang Decheng, several other executive and non-executive directors, an employee representative director, and five ...
Weichai Power Calls January 2026 EGM to Extend Non-Compete and Refresh Board
Jan 12, 2026
Weichai Power Co., Ltd. has convened an extraordinary general meeting for 30 January 2026 in Weifang, Shandong, where shareholders will vote on extending a non-competition undertaking by its controlling shareholder, Shandong Heavy Industry, and on...
Weichai Power Reshapes Board as Executive Director Sun Shaojun Steps Down and Group Veteran Wang Yanlei Joins
Jan 12, 2026
Weichai Power has announced that executive director Sun Shaojun will resign from the board and from the company’s Strategic Development and Investment Committee with effect from 12 January 2026, citing age, and will no longer hold any positi...
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.