China Yuchai International (CYD) AI Stock Analysis

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China Yuchai International

(NYSE:CYD)

74Outperform

China Yuchai International exhibits strong financial performance with improved revenue and profitability margins and a robust balance sheet. Technical indicators show positive trends, though caution is advised due to the RSI nearing overbought levels. The stock appears undervalued with a low P/E ratio and an attractive dividend yield, supporting a favorable investment outlook.

China Yuchai International (CYD) vs. S&P 500 (SPY)

Market Cap

$623.50M

Dividend Yield2.58%

Average Volume (3M)317.80K

Price to Earnings (P/E)13.4

Beta (1Y)0.72

Revenue Growth10.99%

EPS Growth10.30%

CountryUS

Employees8,177

SectorConsumer Cyclical

Sector Strength58

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)1.11

Shares Outstanding40,858,290

10 Day Avg. Volume318,056

30 Day Avg. Volume317,803

Financial Highlights & Ratios

PEG Ratio1.14

Price to Book (P/B)N/A

Price to Sales (P/S)0.31

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$22.00

Price Target Upside49.46% Upside

Rating ConsensusHold

Number of Analyst Covering1

China Yuchai International Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina Yuchai International primarily generates revenue through the sale of its diesel engines. The company's key revenue streams include the manufacturing and distribution of engines for various vehicles and machinery, including commercial trucks, buses, and industrial equipment. Its engines are also used in marine and agricultural applications. Additionally, CYD benefits from government regulations favoring cleaner and more efficient engines, which helps drive demand for its products. The company has established significant partnerships with vehicle manufacturers and leverages its extensive service and distribution network across China to maintain its market position. CYD also invests in research and development to continuously enhance its product offerings, ensuring compliance with stringent emission standards, which further supports its revenue growth.

China Yuchai International Financial Statement Overview

Summary

China Yuchai International demonstrates a healthy financial trajectory with improvements in revenue recovery and profitability margins. The balance sheet is strong with low leverage and high liquidity, and cash flows have shown significant improvement. Despite past revenue volatility, current trends suggest a positive outlook.

Income Statement

Positive

China Yuchai International shows a positive performance in its income statement. The gross profit margin for 2023 is 16.2%, up from 15.7% in 2022, indicating improved operational efficiency. The net profit margin improved to 1.58% in 2023 from 1.36% in 2022, showing enhanced profitability. Revenue grew by 12.6% from 2022 to 2023, a significant improvement after a decline of 24.6% from 2021 to 2022. EBIT and EBITDA margins also show an upward trend, reflecting stronger core business operations.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.28, suggesting conservative leverage. Equity ratio remains healthy at 35.8%. Return on equity improved to 3.1% in 2023 from 2.4% in 2022, indicating better utilization of equity. The company maintains a substantial cash position relative to its debt, enhancing liquidity and financial flexibility.

Cash Flow

Positive

Cash flow analysis reveals robust improvements with free cash flow growing substantially from a negative figure in 2022 to a positive one in 2023. The operating cash flow to net income ratio is 4.29, indicating strong cash generation relative to net earnings. Free cash flow relative to net income is 3.46, further supporting solid cash flow dynamics.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
18.61B	18.05B	16.03B	21.27B	20.58B	18.02B
	Gross Profit
3.01B	2.92B	2.52B	2.77B	3.19B	3.11B
	EBIT
403.62M	609.45M	519.29M	663.53M	1.18B	1.15B
	EBITDA
1.00B	1.33B	1.11B	1.14B	1.61B	1.63B
	Net Income Common Stockholders
316.49M	285.52M	218.58M	272.67M	548.90M	604.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.18B	6.01B	4.80B	5.15B	6.14B	6.12B
	Total Assets
17.92B	25.76B	24.14B	24.91B	26.29B	23.85B
	Total Debt
2.45B	2.59B	2.37B	2.22B	2.25B	2.09B
	Net Debt
-676.91M	-3.42B	-2.08B	-2.57B	-3.63B	-3.67B
	Total Liabilities
10.15B	13.58B	12.30B	13.29B	14.46B	12.28B
	Stockholders Equity
5.90B	9.23B	9.01B	8.86B	9.01B	8.77B
Cash Flow		Free Cash Flow
0.00	988.20M	-550.38M	-67.49M	830.69M	833.93M
	Operating Cash Flow
0.00	1.23B	-119.42M	504.56M	1.42B	1.58B
	Investing Cash Flow
0.00	-113.26M	-133.05M	-738.85M	-785.75M	-810.48M
	Financing Cash Flow
0.00	-33.74M	-140.37M	-838.56M	-461.83M	-589.43M

China Yuchai International Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price14.72

Price Trends

50DMA

17.70

Negative

100DMA

13.93

Positive

200DMA

12.34

Positive

Market Momentum

MACD

-0.88

Negative

RSI

47.11

Neutral

STOCH

40.03

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYD, the sentiment is Neutral. The current price of 14.72 is below the 20-day moving average (MA) of 15.37, below the 50-day MA of 17.70, and above the 200-day MA of 12.34, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 40.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CYD.

China Yuchai International Risk Analysis

China Yuchai International disclosed 33 risk factors in its most recent earnings report. China Yuchai International reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

China Yuchai International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYD	74 Outperform	$623.50M	13.37	3.51%	2.58%	10.99%	10.30%
ALV	74 Outperform	$6.21B	9.98	28.71%	3.10%	-2.29%	35.00%
CMI	74 Outperform	$38.45B	9.84	41.27%	2.56%	0.14%	444.36%
PCAR	71 Outperform	$47.49B	11.45	24.93%	1.39%	-4.29%	-9.76%
LEA	69 Neutral	$4.33B	9.01	10.81%	3.81%	-0.70%	-7.27%
BWA	65 Neutral	$5.75B	17.42	6.46%	1.64%	-11.11%	-46.32%
Sector *	60 Neutral	$6.55B	11.40	3.24%	4.25%	2.38%	-21.28%

* Consumer Cyclical Sector Average

Performance Comparison

CYD

China Yuchai International

15.26

7.11

87.24%

ALV

Autoliv

92.20

-20.62

-18.28%

BWA

BorgWarner

28.43

-3.96

-12.23%

CMI

Cummins

293.96

8.56

3.00%

LEA

Lear

85.39

-44.31

-34.16%

PCAR

Paccar

92.68

-15.52

-14.34%

China Yuchai International Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -36.44% | Next Earnings Date: Aug 19, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance with strong growth in certain segments like marine and gen set engines and profitability in joint ventures, but challenges in China and flat revenue growth in the second half. The company's strategic initiatives, such as share buybacks and expansion in Thailand, demonstrate confidence in its future prospects.

Highlights

Increased Truck and Bus Engine Sales

Truck and bus engine sales rose by 17.2% year-on-year for the full year 2024, outperforming the overall truck and bus vehicle market, which saw a 2.6% decline.

Strong Growth in Marine and Gen Set Engine Sales

Marine and gen set engine sales increased by 25.5% year-over-year, driven by high demand from data centers.

Profitability in Joint Ventures

Investment in associated companies and ventures delivered higher profit, growing by 18.2% year-over-year in second half 2024 and by 53.6% year-over-year for full year 2024.

Inauguration of Yuchai Thailand Operations

Yuchai Thailand commenced production operations, expanding the company's manufacturing capabilities.

Share Buyback and Dividend

The company repurchased 3.3 million shares at a total cost of $39.8 million and paid a cash dividend of $0.03 per ordinary share, reflecting confidence in future growth.

Lowlights

Flat Revenue Growth in Second Half

Revenue in the second half of 2024 was flat compared to the same period last year.

Challenges in the Chinese Market

The operating environment in China was challenging due to declining property investment and other economic factors.

Slight Decline in Operating Profit

Operating profit decreased slightly in FY 2024, with an operating margin of 3.1% compared to 3.4% in FY 2023.

Increased SG&A Expenses

SG&A expenses rose by 25.1% in the second half of 2024, primarily due to higher trade receivables provisions and increased travel, personnel, and selling expenses.

Company Guidance

During the China Yuchai International Limited conference call for the second half and full year of 2024, several key metrics and insights were provided regarding the company's performance and future outlook. The company's truck and bus engine sales increased by 1.6% year-on-year in the second half and by 17.2% for the full year, outperforming the Chinese market, which saw declines of 9.9% and 2.6% respectively. Operating sales rose by 12.6% year-over-year in the second half and by 9.1% for the full year. Revenue for the year increased by 6.6% to RMB 19.1 billion (USD 2.7 billion), while gross profit rose by 14.3% in the second half and 10.8% for the full year, reaching RMB 2.8 billion (USD 392.1 million). The company also experienced a growth in gross margin to 14.7% due to higher revenue and cost reduction initiatives. The share of profits from associates and joint ventures showed significant growth, with a 63.6% year-over-year increase for the full year. Despite challenges in the Chinese market, including a GDP growth of 5%, the company maintained a strong cash position with balances of RMB 6.4 billion (USD 895 million) as of December 31, 2024. The company also highlighted a successful share repurchase plan and continued investment in R&D, accounting for 6.2% of revenue, focusing on emission standard engines and new energy solutions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.