Weichai Power Co Ltd Class H (HK:2338)
:2338
Want to see HK:2338 full AI Analyst Report?
Top Page
Weichai Power Co
(2338)
Select Model
Select Model
Rating:73Outperform
Price Target:
HK$43.00
▲(36.51% Upside)
Action:ReiteratedDate: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 free cash flow generation
Consistent, large FCF (TTM ~24.7B) that grew ~11.1% provides durable funding for capex, R&D, dividends or deleveraging. High cash conversion (~0.77x net income) improves resilience to cycles and supports strategic reinvestment without heavy external financing.
Negative Factors
Rising leverage
Leverage increased materially (debt/equity ~1.04 vs ~0.26 in 2024), reducing financial flexibility. Higher debt raises interest exposure and refinancing risk across cycles, constraining discretionary spend and making the company more sensitive to sustained demand weakness or rising rates over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, large FCF (TTM ~24.7B) that grew ~11.1% provides durable funding for capex, R&D, dividends or deleveraging. High cash conversion (~0.77x net income) improves resilience to cycles and supports strategic reinvestment without heavy external financing.
Read all positive factors
Weichai Power Co (2338) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$317.19B
Dividend Yield3.98%
Average Volume (3M)14.08M
Price to Earnings (P/E)13.7
Beta (1Y)0.81
Revenue Growth11.60%
EPS Growth1.00%
CountryHK
Employees97,288
SectorConsumer Cyclical
Sector Strength84
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.41
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$37.35Price Target Upside18.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.64
Revenue Forecast (FY)HK$251.49B
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 primarily makes money by selling engines, powertrain systems, and related components to original equipment manufacturers (OEMs) and end-users across commercial vehicle and industrial equipment markets. Key revenue streams typically i...
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
Positive
31.50
Price Trends
29.73
Positive
25.24
Positive
20.56
Positive
Market Momentum
0.96
Negative
56.16
Neutral
61.38
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 31.5 is above the 20-day moving average (MA) of 29.38, above the 50-day MA of 29.73, and above the 200-day MA of 20.56, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 61.38 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$317.19B | 13.71 | 13.21% | 3.98% | 11.60% | 1.00% | |
62 Neutral | HK$51.93B | 12.86 | 15.55% | 1.44% | 19.22% | 58.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | HK$151.07B | 19.53 | 8.91% | 1.69% | 13.65% | 24.19% | |
58 Neutral | HK$10.83B | 7.99 | 8.82% | 2.50% | 12.91% | 76.99% | |
55 Neutral | HK$127.06B | 44.90 | 2.23% | ― | 11.01% | 30.24% | |
55 Neutral | HK$122.24B | 18.64 | 7.11% | 1.14% | 29.06% | 50.69% |
* Consumer Cyclical Sector Average
HK:2338
Weichai Power Co
38.64
24.06
165.08%
HK:1072
Dongfang Electric
39.08
28.68
275.84%
HK:2727
Shanghai Electric Group Company
3.89
1.26
47.91%
HK:2208
Xinjiang Goldwind Science & Technology Co
17.28
12.05
230.28%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
2.94
1.98
206.25%
HK:1133
Harbin Electric Co. Ltd. Class H
23.22
18.55
397.43%
Weichai Power Co Corporate Events
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 ...
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...
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.