China Yuchai International Limited Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is China Yuchai International Limited a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $1.27b | Revenue (TTM) = $3.80b
Market Cap = $1.27b | Estimated Revenue = $4.27b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $400.43m | Revenue (TTM) = $3.80b
Enterprise Value = $400.43m | Forward Revenue = $4.27b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
China Yuchai International Limited Stock Analysis
Analyst Opinions
8 Analysts have issued a China Yuchai International Limited forecast:
Analyst Opinions
8 Analysts have issued a China Yuchai International Limited forecast:
China Yuchai International Limited Events
Past Events
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AUG
7
Q2 2026 Earnings Call
about one month ago
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FEB
24
Q4 2025 Earnings Call
7 months ago
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StocksGuide Free
China Yuchai International Limited — Q2 2026 Earnings Call
1. Management Discussion
Good day and thank you for standing by. Welcome to China Yuchai International Limited First Half 2026 Financial Results. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to turn the call over to your first speaker today, Kevin Theiss. Please go ahead, sir.
Thank you for joining us today, and welcome to China Yuchai International Limited's conference call and webcast for the 2026 first half year ended on June 30, 2026. Joining us today are Mr. Weng Ming Hoh and Mr. Choon Sen Loo, the President and Chief Financial Officer of China Yuchai International, respectively. In addition, we also have in attendance, Mr. Kelvin Lai, General Manager of Operations of China Yuchai International.
Before we begin, I would like to remind all listeners that throughout this call, we may make statements that may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words believe, expect, anticipate, project, targets, optimistic, confident that, continue to, predict, intend, aim, will or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the company's operations and financial performance and condition and are based on current expectations, beliefs and assumptions, which are subject to change at any time.
The company cautions that these statements, by their nature, involve risks and uncertainties, and actual results may differ materially depending upon a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China, including those discussed in the company's Form 20-F under the headings Risk Factors, Results of Operations and Business Overview, and in other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date they are made, and the company specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in the press release made on today's call or otherwise in the future.
Mr. Hoh will provide a brief overview and summary, then Mr. Loo will provide the financial results for the first half year ended June 30, 2026. Thereafter, we will conduct a question-and-answer session.
For the purposes of today's call, the first half year numbers for 2026 and 2025 are unaudited. Financial results are presented in RMB and U.S. dollars. All the financial information presented is reported using IFRS accounting standards as issued by the International Accounting Standards Board.
Mr. Hoh, please begin your prepared remarks.
Thank you, Kevin. We are pleased to report continuing growth in sales and profit in the first half of 2026. Revenue increased by 13.9% year-over-year with a 10.9% year-over-year gain in engine unit sales. Our gross profit rose by 36.5% year-over-year to RMB 2.5 billion or USD 368.7 million with gross profit margin increasing to 17.1%.
Operating profit was 58.9% higher at RMB 988.2 million or USD 145.1 million. Profit attributable to our shareholders rose by 53.2% year-over-year to RMB 560.6 million or USD 82.3 million, with diluted earnings per share of RMB 14.81 or USD 2.17 in first half 2026.
Higher sales of our larger engines enhanced both our average selling price and profitability compared with the same period last year. Total truck engine unit sales were up 20.4% year-over-year, led by a heavy-duty truck engine unit sales increase of 47.3% year-over-year. Engine unit sales to off-road markets increased by 7.7% year-over-year in first half 2026, primarily driven by strong demand in marine and power generation markets, where engine unit sales increased by 42% year-over-year.
Our joint ventures and associates produced a 56.2% year-over-year growth in profits in first half 2026, propelled by higher sales and profit mainly from MTU Yuchai. Order demand for high horsepower engines continues to be strong. The combined production capacity for high horsepower engines across the MTU JV and Yuchai currently stands at approximately 5,000 units.
Sales for AI data centers by MTU JV and Yuchai's own brand grew to approximately 1,800 units in first half 2026. With increased engine technology content, advancing performance and environmental impact, we increased total R&D expenditures including capitalized costs by almost 13% to RMB 622.5 million or USD 91.4 million in first half 2026.
In addition to enhancing the quality and performance of our current products, we have introduced new innovative products in first half 2026. Commercial minibuses equipped with Yuchai's YCY24-65kW Flywheel Range Extender System, or YC-FRS, were launched in the heavily congested Hong Kong vehicle market. This new technology reduces the need for fixed charging infrastructure.
We also created a breakthrough in our alternative fuels program with our first high-pressure direct injection internal combustion engine capable of operating entirely on ammonia. We acquired 27.97% equity interest of Nanyue Fuel Injection Systems or NYDK in short. It was previously known as Nanyue Diankong (Hengyang) Industrial Technology Company Limited. This transaction strengthens our technology capabilities, access to new powertrain products and supply chain resilience. Since April 1, 2026, NYDK's financial results have been consolidated following Yuchai's acquisition of control over NYDK on March 31, 2026.
Our subsidiary, Guangxi Yuchai Machinery, that genset power company limited continue to process for its IPO application with the Hong Kong Stock Exchange. Upon completion, the listing is expected to provide the subsidiary with more resources to accelerate its growth while we remain -- we will remain the controlling shareholder of this subsidiary. This will enable us to continue to benefit from the subsidiary's long-term development while focusing additional resources on our other operations.
To further support our strategy of identifying and participating in emerging growth opportunities, we invested in and became a limited partner in Guangxi Yuchai Growth Fund, a private equity fund that invests in businesses focusing on innovative technologies.
At the end of June 2026, our cash management and cash flow from operations provided higher cash and bank balances totaling approximately USD 1.2 billion with lower borrowings, reflecting our commitment to delivering value to shareholders. A cash dividend of USD 0.87 per ordinary share for 2025 was paid in July 2026, compared with USD 0.53 per ordinary share for 2024 paid in 2025.
Our strong financial position empowers Yuchai's ongoing investment in product upgrades and new product development, which furthers establishment of our growing presence in selected international markets to support future growth. Our strategy remains to be to sell into multiple end markets with a growing and diverse product portfolio.
With that, I would now like to turn the call over to Mr. Choon Sen Loo, our Chief Financial Officer, who will provide more details on the financial results. Choon Sen, you may begin your remarks.
Thank you, Weng Ming. Now let me review our unaudited 2026 first 6 months results ended June 30, 2026. Revenue was RMB 14.7 billion or USD 2.2 billion compared with RMB 12.9 billion in first half 2025, a 13.9% year-over-year growth. Engine sales reached 277,684 units in first half 2026, an increase of 10.9% compared with 250,396 units in first half 2025. This growth was driven by stronger performance in the truck segment as well as in off-road applications, particularly construction machinery and marine and power generation.
Total truck engine unit sales were up 20.4% year-over-year in the first half 2026, outperforming the 5.8% year-over-year growth in overall commercial truck, excluding gasoline and electric vehicles sales reported by the China Association of Automobile Manufacturers, CAAM, in the same period.
Heavy-duty truck engine unit sales increased by 47.3% year-over-year compared with the 13.1% year-over-year growth in heavy-duty truck sales reported by CAAM. Light-duty truck engine unit sales rose by 23.6%, contrasted with a decline in light-duty truck sales according to CAAM. Medium-duty truck engine unit sales also grew 7.9% year-over-year.
Engine unit sales to off-road markets increased by 7.7% year-over-year in the first half 2026. The growth was primarily driven by strong demand in the marine and power generation markets, where engine unit sales increased by 42% year-over-year. Sales for industrial applications rose by 15.8% year-over-year, while engine sales for agricultural machinery declined by 18.9% in the same period.
Gross profit increased by 36.5% to RMB 2.5 billion or USD 368.7 million from RMB 1.8 billion in first half 2025. The increase was mainly due to higher sales volume, better sales mix and reduced warranty expenses. Overall, gross margin was 17.1% in first half 2026 compared with 14.3% in first half 2025. Increased sales of larger engines enhanced the gross profit margin in first half 2026 year-over-year.
Other operating income net decreased by 32.2% to RMB 150.2 million or USD 22.1 million compared with RMB 221.4 million in first half 2025. The decrease was mainly attributable to lower government grants and the absence of technology licensing fees income in first half 2026 as compared with that of first half 2025.
Research and development, R&D, expenses increased by 24.5% to RMB 593.4 million or USD 87.1 million compared with RMB 476.7 million in first half 2025, due to higher experimental and personnel costs and a lower level of capitalized project costs. Total R&D expenditures, including capitalized costs, were RMB 622.5 million or USD 91.4 million, representing 4.2% of revenue in first half 2026 compared to RMB 551.7 million and 4.3% of revenue in first half 2025.
Selling, general and administrative, SG&A, expenses increased by 12.2% to RMB 1.1 billion or USD 158.5 million from RMB 962.5 million in first half 2025. This increase was driven by higher personnel expenses and legal professional and consultancy fees compared with first half 2025. SG&A expenses represented 7.4% of revenue for first half 2026 compared with 7.5% of revenue in first half 2025.
Operating profit increased by 58.9% to RMB 988.2 million or USD 145.1 million compared to RMB 621.7 million in first half 2025. The operating margin increased to 6.7% in contrast with 4.8% in first half 2025. Higher operating profit and operating margin were achieved by increased sales and gross margin, combined with controlled growth in operating expenses.
Finance costs decreased by 16% to RMB 27 million or USD 4 million compared with RMB 32.2 million in first half 2025, primarily due to reduced term loans during the period.
The share of financial results of the associates and joint ventures grew by 56.2% to a profit of RMB 95.9 million or USD 14.1 million compared with RMB 61.4 million in first half 2025. The increase was mainly driven by higher profits at MTU Yuchai Power Company Limited.
Income tax expense increased by 85.3% to RMB 215.3 million or USD 31.6 million compared with RMB 116.2 million in first half 2025 primarily due to higher profits and the utilization of deferred tax assets. The effective income tax rate increased to 20.4% compared with 17.8% in first half 2025.
Net profit attributable to equity holders of the company increased by 53.2% to RMB 560.6 million or USD 82.3 million compared with RMB 365.8 million in first half 2025.
Basic earnings per share were RMB 14.94, USD 2.19 compared with RMB 9.75 in first half 2025, both based on a weighted average of 37,518,322 shares. Diluted earnings per share were RMB 14.81 or USD 2.17 based on a weighted average of 37,845,508 shares compared with RMB 9.75 based on a weighted average of 37,518,322 shares in first half 2025.
The company adopted the China Yuchai International Limited 2025 Equity Incentive Plan with a duration of 10 years, and granted share options in August 2025 and December 2025 respectively, with a total of 820,000 share options granted as of December 31, 2025. No comparable share options were granted in first half 2025 and half 2026.
Now we will go through some balance sheet highlights as of June 30, 2026. Cash and bank balances were RMB 8.1 billion or USD 1.2 billion compared with RMB 7.9 billion at the end of 2025. Trade and bills receivables were RMB 14.1 billion or USD 2.1 billion compared with RMB 11 billion at the end of 2025.
Inventories were RMB 5.8 billion or USD 844.5 million compared with RMB 5.6 billion at the end of 2025. Trade and bill payables were RMB 13.2 billion or USD 1.9 billion compared with RMB 11.6 billion at the end of 2025. Short-term and long-term loans and borrowings were RMB 1.4 billion or USD 210.1 million compared with RMB 2 billion at the end of 2025.
I will now turn the call over to Kevin for a comment for Q&A session. Kevin, please.
Okay. All right. So please note some officers of China Yuchai are remotely calling into the conference. This may result in a slight delay in providing answers to some questions. We apologize for any inconvenience and thank you for your patience. [Operator Instructions]
Now operator, we are ready for questions.
[Operator Instructions] Our first question comes from the line of Wei Shen from UBS.
2. Question Answer
Congratulations on strong results. My question is about the AIDC kind of volume guidance. So we have achieved like 1,800. And I think at the beginning of the year, we are targeting like 2,600. So any color into the second half of this year? This is first question.
And my second question is about the dividend. I noticed that the company announced 2025 dividend, but the payout ratio seems to be lower than 2024. So I'm wondering any color on this.
Okay. I'll take the questions on dividend, and I'll let Kelvin take the question on the AIDC. No, there's no particular reason. I think the payout ratio, if you look at our payout ratios in the past 10 years, it ranges from about 30% to 40%, sometimes a little bit higher, sometimes a little bit lower. So it's still within that range. So that hasn't changed. So yes, there's no anything untowards there.
[Indiscernible] Lai Chuen regarding on the volume of the AIDC. So in the first half and then the total volume of the AIDC from both the Yuchai and plus the MTU joint venture joint venture is 1,800 units. So that is for the AIDC only.
And for the second half and then we will expect the whole year and then will be around about 3,500 and more. So this is -- we have adjusted the production and also the sales volume of the whole year of 2026. And it means that there will be quite a significant growth compared to the year of 2025.
The next question comes from the line of Fuyin Liang of Bank of America.
Management, this is Fuyin from Bank of America. I have a question about our gross margin profile. So in the first half, we see that the blended gross margin improved quite a lot. Could you explain more about the factors behind whether it is due to the product mix change or our improving cost efficiency? And actually, I also want to ask the gross margin or the net margin on Yuchai MTU. So for the first half, our share of profit from associate and JV improved a lot. So what's the margin profile for Yuchai MTU currently?
So I will take the first question, right, regarding the gross margin expansion or improvement, right, from 14.3% to 17.1%. So yes, I think you mentioned earlier on that the first thing first that the product mix, right, the product mix actually drove the margin up particularly in the large engine or high power engine, right? So that gives us a nice uptick for the margin, right? So that's number one, okay?
And then we also mentioned that our heavy-duty engine unit sales has increased as well. So that also give us some favorable margin increase in that aspect, okay? Of course, the third point is that I think you also mentioned that we have continued to enhance our operational efficiency, right? That is actually will help our cost rationalization, right, in the first half. Of course, our first half, we also been affected by some unfavorable precious metal price increase. So that is kind of being offset against what we have been doing for the cost improvement.
I hope that I addressed your first question, Fuyin. Okay. Then the second question on...
Okay. I'll take the MTU question. So the -- actually, this year and 2026, the GP of the MTU joint ventures saw a little bit reduced and mainly because of the cost of the engine and also the -- there's some pricing pressure, and we had to offer further discount in engine, both to OEMs and also our partners. And the overall sales of the first half and then increasing by over 40%. And so the revenue and also the net profit is also increased, but net profit percentage is not as good as the revenue growth. But we are still maintaining about over 30% GP of the whole assets overall. So this is still quite promising on the net profit. Thank you.
Our next question comes from the line of Yiming Liu of Haitong Securities.
Congratulations for your strong H1. So I've got 2 questions. Number one, could you describe any progress on your gas engine product? Is there any chance that they could be used in the data center business for prime power, especially in North America? And another question on fuel cell. So could you describe any progress on your fuel cell business? Is there any chance that they could be used in the data center in the future?
Okay. Let me take the first part, Yiming, and regarding on the gas engine. So the gas engine actually is a traditional engine product and then it is available in Yuchai for many years. So when we develop the diesel and then the gas engine is also available. So it's a ready available product and ready for the market.
But you're mentioning about on the North American market. And then at the moment, our engine is still under the certification process. So now is waiting and then for all the testing and it can be fully done and then before we can release the engine and then for any other region. And at this stage, we still end up using our existing platform of the VC engine and then that is up to 2.5 megawatt for diesel and about 3 megawatt for the rail application. So we don't have exact timing regarding when we can -- I mean, get into the U.S. market. We are actually doing everything we can there. Thank you.
And can you repeat your second question again on the fuel cell?
Yes. So could you give us some introduction of your fuel cell business? And is there any chance that they could be used in the data center power generation in the future?
Well, I mean, our fuel cell unit is still in progress. We have been developing products in the past. We have some products that's been installed in the past, especially in Beijing. We haven't -- we have not started working on the power generation side of it. So I guess at some point in the future, it is a possibility, but that's definitely not in the short term. We have not -- do not have a product in the short term for power generation for fuel cell system as yet. Okay?
[Operator Instructions] We have a new question from the line of Natalie Ong from CGSI.
Congratulations on this good set of results. I have some questions regarding your AIDC capacity. I'm not sure if I heard this wrongly earlier. At the start of the call, you mentioned that your current capacity for high horsepower engines/DC engines is currently 5,000 for 2026. Is that correct?
Yes, that's correct.
So does that mean that actually there has been an increase in capacity? Because I think previously, you were guiding about 4,000 capacity for 2026.
Let me take this question. Last year and then our capacity for the high horsepower engine, I mean the combined Yuchai local brand plus the MTU JV brand and all add together is about 3,000 last year. And we had the capacity expansion program at the end of 2024, so that it was complete last year. So we had about -- increasing about 700 unit capacity for the high horsepower. But at the beginning of this year, then we also by then modified our internal process so that we had to subcontract out some of our machining process and to the external subcontractor.
Through this practice and then we can increasing about 1,000 unit capacity for machining. So now we have all add together and then total is about 5,000. So this is our current capacity for the high horsepower engine, so including then for those AIDC or non-AIDC application. We are still in the planning to further increase the capacity for next year. But I think we are now not had a final decision regarding what's the volume will be increasing and then for the next and then the year on this. Thank you.
Okay. So my understanding is that the capacity has increased due to outsourcing of certain machining requirements. Is that correct?
Yes. Yes, we contract out some of the machining process in the past and then we do all the machining in-house. But now and then we are using the external contractor and then to do some of the machining for us so that we can scale out and then further capacity and then to build more engine.
Okay. So does this mean that you're still guiding for 3,500 only AIDC, that means excluding those sold to non-AI?
That is -- it's AI only, yes. 3,500. Yes.
So that means we expect to sell all the capacity that we have, which is going to be 5,000 for the year?
Yes, this is -- yes, exactly. It is 5,000 for the year.
And to be clear, right, the ASPs for high horsepower engines, be it sold to AIDC customers or non-AIDC, the ASPs are actually similar.
Yes. Correct. And because the high horsepower engine is not only for application of AIDC, this is only for using the engine for the power generation. So the power generation can be using in the factory. You may be using in the commercial building. And then so there's quite a lot of non-AIDC application and then using the high horsepower engine as well.
That's perfect. Can I also check? I know some of your competitors have also been ramping up their manufacturing capacity. How has that affected your ability to command or maintain increase your average selling prices for these high horsepower/AIDC engines?
In fact, the -- I mean that because of the surge in demand of the AIDC engine in the high horsepower engine market, so not only Yuchai with MTU, but I mean all other engine manufacturers, they also do the same thing and then have the capacity expansion program. And then the beginning of 2024, 2025 and this year. So I think the market is still very competitive. And the engine supplier and then they -- I mean, they have to do whatever they can to win the order. Otherwise, the expansion program and then we will have to be -- I mean difficult then to get the return.
So the pricing-wise and then we haven't had any -- I mean, a real pricing increase compared to last year, except we have the cost increase and then from our suppliers and then coming by to the end user for all those additional costs [indiscernible] quite stable pricing, anyway, yes. Thank you.
One last question. I know you mentioned that you have not firmed up your capacity -- available capacity for next year. So do you mean to say that you could try to outsource more of this machining and maybe increase capacity? Or do you think that this will require expansion of lines and therefore, more CapEx spending?
Actually, we will do in a dual way. I mean, one is that we will further outsource some of the process. But we cannot outsource every process, I mean to the external supplier because we can do the -- what we call the first machining, the fine machining, we need to do it in-house anyway. So we still have to -- I mean, increasing some of the machinery and then for the fine machining process inside the factory. So we will have to do it both ways. And then also then try to increasing the subcontract processing.
And secondly, and then we still have to be increasing -- I mean to buy some more equipment and then for the internal process as well. So we will do the same. And we have some planning done or reasonable planning regarding on the capacity of next year, but we need to finalize and then before we absolutely put into action.
[Operator Instructions] At this time, we do not have any further questions from the phone or webcast. Allow me to hand the call back to Mr. Hoh for closing.
All right. Thank you all for participating in our conference call. We wish all of you good health and look forward to speaking with you again. Thank you. Goodbye.
This conference call, thank you for your participation. You may now disconnect your lines.
China Yuchai International Limited — Q4 2025 Earnings Call
1. Management Discussion
Good day, and thank you for standing by. Welcome to China Yuchai International Limited Second Half 2025 Financial Results. [Operator Instructions] Please be advised that today's conference call is being recorded. I would now like to turn the conference over to Kevin Theiss. Please go ahead, sir.
Thank you for joining us today, and welcome to China Yuchai International Limited Conference Call and Webcast for the 2025 Second Half and Year Ended on December 31, 2025.
Joining us today are Mr. Weng Ming Hoh and Mr. Choon Sen Loo, President and Chief Financial Officer of CYI, respectively. In addition, we have in attendance Mr. Kelvin Lai, General Manager of operations of CYI; and the Chairman of MTU Yuchai Power Company Limited or MTU Yuchai Power.
Before we begin, I will remind all listeners that throughout this call, we may make statements that may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words believe, expect, anticipate, project, targets, optimistic, confidence that continue to, predict, intend, aim, will or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the company's operations, as financial performance and condition and are based on current expectations, beliefs and assumptions, which are subject to change at any time. The company cautions that these statements, by their nature, involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China, including those discussed in the company's Form 20-F and under the headings Risk Factors, Results of Operations and Business Overview, and in other reports filed with the Securities and Exchange Commission from time to time.
All forward-looking statements are applicable only as of the date they are made, and the company specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in a press release made today for today's conference call or otherwise in the future. Mr. Hoh will provide a brief overview and summary, and then Mr. Loo will review the financial results for the second half and fiscal year ended December 31, 2025. Thereafter, we will conduct a question-and-answer session.
For the purposes of today's call, the 2025 2nd half of fiscal year numbers are unaudited. The 2024 2nd half year are unaudited and the 2024 fiscal year financial results are audited. Financial results are presented in RMB and U.S. dollars. All of the financial information presented is reported using the IFRS accounting standards as issued by the International Accounting Standards Board.
With that, Mr. Hoh, please begin your prepared remarks.
Thank you, Kevin. We are pleased to report strong sales and profit growth in second half and full year of 2025. For the second half, the revenue in the second half increased by 33.5% year-over-year to RMB 11.8 billion or USD 1.7 billion. Our gross profit increased by 28.4% year-over-year to RMB 2.2 billion or USD 317 million and our gross margin rose to 18.9%. Our operating profit increased by 193.1% year-on-year to RMB 439.2 million or USD 66.7 million. Basic and earnings per share improved by $108.7 million year-over-year to RMB 4.57 or USD 0.65. For fiscal year of 2025, revenue increased by 28.9% to RMB 24.7 billion or USD 3.5 billion. Gross profit increased by 44.3% in year-on-year to RMB 4.1 billion or USD 578.7 million. And gross margin rose to 16.5%.
Operating profit improved by 22.7% to RMB 1.1 trillion or USD 155.2 million. Please see and diluted earnings per share increased by 24.4% to RMB 14.32 or USD 2.04. Our revenue growth in 2025 second half and year was generated by higher unit sales in nearly every reported category. Gross profit and margin was enhanced by the increased unit sales volume, especially for heavy user [indiscernible]. Our off-road engine unit sales in 2025 increased by 13% year-on-year with Marine and genset engines and industrial each recording unit sales growth of over 24% year-on-year. The fast-growing demand for backup generators to provide reliable electric power for data center operations created rapid growth for our engines.
Combined sales of MTU Yuchai Power and Yuchai high-horsepower engines to data centers exceeded 2,000 units in 2025, up from 750 units in the prior year. To meet the expected increase in demand for our power generating engine production capacity attention is well underway. Exports were an important sales channel as our globalization has been increasing. Our agreement in Vietnam includes Yuchai support for construction of our partner production facility, which complements our Thailand production operation. Buses powered by Yuchai natural gas engines were delivered in Mexico, bringing the total Yuchai engine to 2,400 units for repurposing the new world Leon [indiscernible].
Our foundry began fresh delivery of advanced casting to Germany, demonstrating the acceptance of our casting product quality provide the customers. We are expanding our international sales and service support offices as we believe potential new international partnerships will strengthen our global reach. Our strategy remains to sell into multiple end markets with a growing and diverse product portfolio. R&D expenses increased by 37.3% to RMB 1.4 billion or USD 592.3 million in the fiscal year of 2025. Yuchai continues to enhance engine efficiency and performance of its special and Tier 4 emissions complied engines and power generation engines, progress continue while developing new energy products, including alternative fuel engines, using hydrogen, methanol and ammonia combustion technologies.
Total R&D expenditure, including capitalized cost was RMB 1.5 billion or USD 278.1 million. Our strategic alliances and joint ventures produced a 9.4% year-over-year growth in profit in 2025, propelled by higher sales and profit mainly by MTU Yuchai. Recently, we took variety of steps to strengthen our technological capabilities and supply chain resilience by improving access to key components and advancing our participation in critical technology development. We acquired a 27.97% equity interest in [indiscernible] industrial technology company, which is a national high-tech industrial leaders specializing into injection systems, including common rail systems, unit pump and mechanical parts.
In addition, we became a limited partner in the growht fund, a private equity focus on investing in emerging and invest in innovative technologies. Our indirect subsidiary on Yuchain Marine and Genset power company filed an application for listing with the Hong Kong Stock Exchange in January 2026. The potential listing is subject to review and approval by the Hong Kong Stock Exchange and relevant regulatory authorities and market conditions. We believe this action will provide more resources to enhance their operations growth, highlighting the company's confidence in future revenue, profits and cash flow generation. We paid a cash dividend of $0.53 per auditory share in July 2025 to show our commitment to building shareholder value. Cash and bank balances were over RMB 7.9 billion or USD 1 billion as at December 31, 2025.
With that, I'd now like to turn the call over to Mr. Choon Sen Loo, our Chief Financial Officer, who will provide more details on the financial results. Choon?
Thank you, Weng Ming. Now, let me review our unaudited 6 months and full year results ended December 31, 2025. For the 6 months, our revenue increased by 33.5% to RMB 11.8 billion or USD 1.7 million compared with RMB 8.8 billion in second half 2024. Total number engines sold increased by 28.7% to 210,913 units compared with 133,843 units in second half 2024. The increase in the total number of engines sold in second half 2025 was primarily driven by 9.2% year-over-year rise in truck and bus engine unit sales, which significantly outpaced the 3% year-over-year drove in market shares of truck and bus rates, excluding and electric power vehicles as reported by the China Association of Automobile Manufacturers, CAAM. Truck engine unit sales in second half 2025 rose by 39.4%, led by a 126.1% year-over-year gain in heavy-duty truck engines. Also engine unit sales increased by 7.5% year-over-year, led by strong growth of more than 22% in both industrial and marine and genset unit sales, offsetting [indiscernible] engine unit sales.
Gross profit increased by 50.4% to RMB 2.2 billion or USD 317 million up from RMB 1.4 billion in second half 2024. Gross margin increased to 18.9% in second half compared with 15.9% in second half 2024. The increase was mainly due to higher unit sales volume, a change of sales mix with high unit sales of heavy-duty and high horsepower engines and continuing construction initiatives. Other operating income decreased by 44.1% to RMB 204.5 million or USD 31.9 million compared with RMB 401.5 million in second half 2024. The decrease was mainly due to lower government grant. Research and development advances increased by 0.8% to RMB 804.9 million or USD 124.5 million compared with RMB 591.1 million in second half 2024, mainly driven by higher experimental costs, increased percentage expenses, higher more costs and impairments related to fuel cell development.
Total R&D expenditures, including supplies costs were RMB 934.2 billion or USD 108.6 million, representing 8.3% of the revenue in second half during '25. As compared to RMB 726 million or 8.2% of the revenue in second half in '24. Starting general and administrative, SG&A expenses increased by 4.9% to RMB 1.1 billion or USD 157.7 million from RMB 1 billion in second half 2024. This increase was mainly due to increased personnel expenses and higher consultancy fees, partially offset by lower accounts receivable provisions compared with same period last year. SG&A expenses represented 9.4% of the revenue in second half 2025 compared with 12% for the second half 2024.
Operating profit rose by 193.1% to RMB 469.2 million or USD 66.7 million from RMB 160.1 million in second half 2024. Operating margin was 4% compared with 1.8% in second half 2024. The increase was generated by higher unit sales volume, a change of sales mix with unit sales of heavy-duty and high horsepower engines and lower SG&A expense as a percentage of the total revenue. Costs decreased by 20.2% to RMB 29.6 million or USD 4.2 million from RMB 27.1 million in the second half 2024, primarily due to low bank term loans and reduced discounting. The share of financial results of the associates and joint ventures decreased by 15.1% in to RMB 49.7 million or USD 7.1 million compared with RMB 8.5 million in second half 2024.
the decrease was mainly due to reduced product NC engine limited.
Income tax expense was RMB 213.5 million or USD 30.4 million compared with RMB 26.4 million in second half 2024. The tax increase was due to higher profits in second half 2025 as compared with second half 2024 and higher deferred tax expenses. Net profits attributable to the duty holders of the company increased by 107.4% to RMB 101.6 million or USD 24.4 million compared with RMB 82.7 million in the second half 2024. Basic and diluted earnings per share was RMB 4.57 or USD 0.65 compared with RMB 2.19 in second half 2024.
Basic and earnings per share for second half 2025 and second half 2024 were based on the weighted average of 37,515,322 shares and 37,609,694 shares, respectively. Now we will review the unaudited financial results for the fiscal year ended December 31, 2025. Revenue increased by 230.9% to RMB 24.7 billion or USD 3.5 billion compared with RMB 19.1 billion in FY 2024. The total number of engines sold in FY 2025 increased by 29.4% year-over-year to 461,309 units compared with $356,586 units in FY 2024. Truck and bus engine units rose by 42.8% compared with CAAM data for retail market sales growth, excluding gasoline and electric power engines of 4.5% for 2025.
Total truck engine unit sales rose by 50.7% year-over-year compared with a 5.9% year-over-year increase from CAAM data for truck unit sales. Heavy duty truck engine sales increased by 18.1% year-over-year in 2025, followed by 34.2% year-over-year increase in medium-duty truck engines and 67.6% year-over-year improvement in light-duty truck engine sales. Off-road engine unit sales increased by 13% year-over-year with both industrial and marine and genset unit sales growth of more than 24% year-over-year, offsetting lower engine unit sales.
Gross profit increased by 44.3% in to RMB 4.1 billion or USD 578.6 million from RMB 2.8 billion in FY 2024. Gross margin increased to 15.5% compared with 14.7% in FY 2024. The increase was mainly due to higher unit sales volume, a change of sales mix to higher unit sales of heavy-duty and high-horsepower engines and continuing cost-reduction initiatives. Other operating income decreased by 22.5% to RMB 445.9 million or USD 63.4 million compared with RMB 535.7 million in FY 2024.
This was primarily due to lower bank interest income and reduced government grants. Higher expenses increased by 37.3% to RMB 4.4 billion or USD 102.3 million compared with $984.7 million in FY 2024 primarily driven by higher experimental costs, increased personnel expenses and impairment related to fuel cell developments. Yuchai have continued with its initiatives to enhance the energy efficiency and performance of this national 6 and Tier 4 emissions compliant engines and power generation engines for data center and marine applications, while also advancing its new LNG solutions.
Total R&D expenditures, including cost was RMB 1.5 billion or USD 217.1 million representing 6.2% of the revenue in FY 2025 compared with RMB 1.2 billion or 6.2% of the revenue in FY 2024. SG&A expenses increased by 14.3% to RMB 2.1 billion or USD 204.7 million, representing $8.4 million of the revenue in FY 2025 compared with RMB 1.8 billion or 9.5% of the revenue in FY 2024. This was mainly due to higher percent of expenses and consultancy fees as well as increased the sales and service expenses that partially offset lower accounts receivable provisions. Operating profit increased by 82.7% to RMB 1.1 billion or USD 155.2 million compared with RMB 587 million in FY 2024.
The operating margin was 4.4%, up from 3.1% in FY 2024. Finance costs decreased by [indiscernible] to RMB 61.8 million or USD 8.8 billion from RMB 78 million in FY 2024 primarily due to lower banker loans. The share of financial results of the associates and joint ventures increased by 9.4% to income of RMB 111.1 million or USD 15.8 million compared with income of RMB 101.5 million in FY 2024. The improvement was mainly driven by higher profits of [indiscernible] at MTU Yuchai Power Company Limited and increased profit program Yuchai automotive technology company partially offset lower profits and YC Engine Limited.
Income tax expense increased by 106% to RMB 329.3 million or USD 6.9 million compared with RMB 128 million in FY 2024. The tax increase was driven by higher profit in FY 2025 as compared with 2024 and higher deferred tax expenses. Net profit attributable to the company's shareholders increased by 66.3% to RMB 511.4 million or USD 76.5 million compared with RMB 333.1 billion in FY 2024. Basic and earnings per share rose by 34.4% to RMB 14.32 or USD 2.4 compared with RMB 8.21 in FY 2024. [indiscernible] share for FY 2025 and FY 2024 were based on the -- shares and 39.35 million shares, respectively.
Now we will go through some financial numbers as of December 2025. Central Bank paces were RMB 7.9 billion or USD 1.1 billion compared with RMB 6.4 billion at the end of financial year 2024, receivables were RMB 10.4 billion or USD 1.5 billion compared with RMB 8.8 billion at the end of FY 2024. Inventories were RMB 5.6 billion, USD 791.8 million compared with RMB 4.7 billion at the end of FY 2024.
Trade and bills payables were RMB 11.1 billion or USD 1.6 billion compared with RMB 8.5 billion at the end of FY 2024. Short-term and long-term loans and borrowings were RMB 2 billion or USD 287.4 million compared with RMB 2.5 billion at the end of financial year 2024.
I will now turn the call over to Kevin for a comment for Q&A.
Mr. Loo, please note, some officers of China Yuchai are remotely calling into the conference call. This may result in a slight delay in providing answers to some questions. We apologize for an convenience and thank you for your patience.
If you would like to ask a question in Chinese, please kindly translate your own question to English before turning to the management for answers. And before we start the Q&A, we would also like to announce that management will be attending the forthcoming Jefferies conference on March 19, the HSBC Conference on April 14 to 16 Bank of America Merrill Lynch Conference in Shenzhen on May 13, JPMorgan Conference on May 20 to 22 and the UBS conference in Hong Kong on May 26 to 29. If you are interested in a one-on-one or a small group meeting, please contact the salespeople at these banks. Given the tight leading schedule and travel plans, we will not be able to accept meeting requests outside the conference venues.
Now operator, we are ready for questions.
[Operator Instructions]
Okay. Operator, I've seen the questions online. Okay. So I'll read the questions from [indiscernible]. So the question is that, thanks for [indiscernible] congrats on the strong results by year-over-year. Can you potentially share more on much higher expenses in the second half where effective tax rate is about 44%.
Okay. I'm Choon Sen, CFO of CY. So I will take these questions. So I think this question is the tax expense, we should look at the full year, right? So from a full year basis, there's a 7% to 8% higher due to the deferred tax. So on a year-on-year basis, we wrote off about a net basis by $100 million. So that is actually noncash item. That is also due to the of accounting that we look at the future profits for all the entities and eventually, then we need to impair those deferred tax assets that should be shown to be assessed. So we -- the company has started to write off those deferred tax assets and reduce it to the level of -- to sustain for the future profit. That's also part of the accounting requirements that we have done that. Yes. So if you exclude that, so we will come down to about 20% to 21% effective tax rate on a year-on-year basis. So the changes is probably only about 12% if you look at 2025 and 2024.
Okay. I hope that answers your questions [indiscernible].
We do have questions from the phone line. The first question comes from Wei Shen of UBS.
2. Question Answer
My question is about the other operating income. I found that in 2024, it decreased a lot. And I'm wondering what's the reasons and what's the outlook in 2026?
Okay. I'm Choon sen, here. So your question is on the -- your question is on the operating other income, right? I just want to confirm your question.
Yes.
Okay. So the reduction is mainly due to the lower government grants. So in 2025, probably a lot of people on the call may know that they are quite tighten up the incentive policy issued by the Chinese government. So that has reduced substantially. It's actually half of the government grant that we have received in 2024 -- in 2025 compared to 2024. So if your question. Next question is that whether that will continue in this trend, right? That one, again, we won't project that what will be the incentive from the government. But for now, I would think that the trend probably will remain as 2025.
Okay. My next question is about the share of the joint venture profit in 2025 because we only have the combined results, we don't have the details. Can -- do you have the numbers for the MTU joint venture? What's the profit growth for the joint venture?
Well, we'll let Kelvin Lai answer that. He's the Chairman of MTU. He can tell you about it.
Okay. Thank you for the question. The joint venture last year and then they generate the net profit is about RMB 211 million. So they're increasing by 22% and then from the year 2024. But the sales volume and also the revenue is much higher, about 30% plus increase. The reason why the profit not as good as the volume sales or the revenue generated because of the product mix has been changed and we sold less the 20 cylinder engine and the profit and also the revenue is a little bit lower than the other version.
Our next question, we have the line from Fiona Lian from Bank of America.
This is Fiona from Bank of America. So I also have 2 questions for the management team. The first one is that in the second half in 2025, we see that the company's gross profit margin improved quite a lot year-over-year. So could you please elaborate more about the reasons behind? And is it because we have more delivery to the power generation clients so that we have a better product mix and hence, the higher gross margin? That's the first question.
Okay. Let me answer that question. Actually, if you look at the unit sales that we had disclosed in the announcement, the unit sales actually gone up by about 30%. So that's one of the major reasons why the profit improved is due to the increase in volume. And two, also because of our high horsepower engines, we sold more than we did last year. I mean, again, significantly more. If you look at our numbers again in the announcement, got up from 750 to 2,000. So those are 2 major contributors to the improved performance. Of course, with the higher volume that we have, higher unit sales, that will kind of leverage the fixed cost that contributes to the better gross margin too.
Okay. So I have a follow-up question. So given the better product mix in 2025, so what's our guidance for 2026?
It's going to be quite challenging, difficult to provide a good guidance in China. In China, the sales, a lot of it is due to government policies driven by government policies, right? So we haven't seen much yet. Last year, one of the biggest reasons for the increase in revenue or unit sales is because of the government policy, the replacement policy -- so that one has actually drove quite a fair bit of our vehicle sales and also quite a bit of our nonvehicle sales as well volume. So whether or not the government is going to continue with that and how strongly is going to push that next year is yet to be seen, and that will determine the impact on the overall unit sales growth. But however, the -- there is a bright spot. We see a lot of big demand in the data centers last year, and that has maintained, and we expect it to improve this year, but it's hard to give you a percentage of the growth. So I think we expect that to improve by double digit this year for the data centers. So overall, I think this year's non center sales is going to be more or less the same if the government continues with the policies last year.
So my second question is about our R&D expenses. So in 2025, we see that the R&D expenses increased over 30%. So looking at 2026, what do you expect the R&D expenses growth rate? And what's our key R&D focuses looking at 2026 and 2027...
Okay. Our R&D expenses growing by around about 5% of our revenue, right? So it goes same type of revenue. The other one that we should talk about is that what type of research, there are a few things that we're working on. One of them is, of course, the new energy side of things. We are still developing and continue to develop on the new energy side, particularly in the range of standard EVs and to try to get our system, which is already commercialized to be fact or developed into our customers' vehicles. And other areas will be new kind of new areas, new energy systems, things like ammonia, methanol and hydrogen power combustion engines other than fuel cells, right? So if you -- and also, the Chinese government is also considering introducing National VI emission standards in the coming 2 to 3 years. So that -- for that, we are also starting to do some R&D to get ourselves ready for that emissions requirement. So there are quite a few areas that we're working on in addition to continuous improvement on the product to make it more efficient and more fuel efficient as well. So there are quite a few areas working on.
Our next question comes from [indiscernible] CICC.
Congratulations. So I have 2 questions to ask. The first one is about the future business of the HPP engines. We noticed that Caterpillar has announced its reciprocating generators can be used as prime power for data centers. So how does a view this industry trend? And do we have some existing natural gas engine products and technologies to support this industry trend? This is my first question.
Kelly, would you like to...
Yes. Let me take this question, yes. The high horsepower engine, the business forecast and then it still depends on the development of those Internet service provider and then how fast they build the data center. So we do expect there will be still a growth in the year 2026 when comparing to 2025, but we don't have the exact figure because -- and then so far, then we don't receive -- I mean, the order order and then from the wireless customer. Regarding on your question regarding on the natural gas generator and then from Yuchai, then we do have our natural gas engine for the power generation. We have the technology and we had the right product as well. And our product, the natural gas engine will be very similar to the diesel engine. And then they had using our 16 VC engine and then that will be generated, I mean, about 2 megawatts for the power generation using natural gas. But so far and then the application of the natural gas for high horsepower is mainly on the industrial application at the moment because in the region of China or Asia and then -- I mean, the customer and then we are considering the cost of the engine and then they are not using the natural gas engine for the data center at this stage.
Very clear. So my second question is about our significant market share gain in truck and bus engines, especially in 2025. So how do you view the 2026 outlook for domestic truck and bus industry sales and whether market share growth can be sustainable? This is my second question.
Okay. So you're talking about vehicle engines, the major vehicle OEMs in the market, some of them are using our engines. In particular, I think we have been working with the vehicle OEMs for quite a while to get our engines certified and design into their vehicles. And 2 of them have already come to fruition last year.
Last year. So -- and that's why we see a big growth in our heavy-duty truck segment of the market, correct? So with that, we expect that to continue into 2026, barring any unforeseen. So yes, we do expect to see some continued growth in that area.
[Operator Instructions] Our next question comes from Yiming Lui from Haitong Securities.
So I've got 2 questions. So first one is about your backlog, especially for those associated with the data center business. So if we compare your backlog right now and like half a year ago, so I'm just wondering, is that getting larger? Or if you look at the demand and supply, so is the supply getting more and more constrained, it's getting more and more tighter. Is that what is happening for those data center engines?
Kelly? It has to be -- I mean, separate the operation because for the Yuchai brand high horsepower engine, most of the component supply, they are they generally come from the China. So that the -- I mean, on the supply side and then we didn't have much problem there. And then because they had providing the most component for our engine assembly. But the cost-wise and then they are increasing the price this year, mainly because of the raw material increasing recently. And so that cost and then our cost up. But for the joint venture side and we do have the bottleneck and then regarding on the supply because of the supply chain from our partners and from Germany and then they do have some constraint and causing the supply of the component will be limited and then for the operation in the Chinese joint venture.
All right. But I guess I didn't get it clear. So I'm trying to ask about your backlog, I mean, the order that you received from your customer. So is that -- is the size of that getting larger during the past few months?
No. I mean we are still working very hard to fulfill those requirements. And the -- I mean, the delivery and then so far is still about between 3 to 4 months anyway.
All right. Okay. And my second question is about exports. So do you see any like increase on your European business? And what is the like the detailed segment about that? Is that about like diesel engines or gas engines? Or I mean, what is the outlook of your European business?
Are you referring to high horsepower engine or referring to the truck engine?
Mostly about the large horsepower engine.
Okay. Yes. For the export market, if we referring to the Yuchai brand -- I mean, the Yuchai brand operation, our export markets only account for a small percentage, about 10% and mainly in Asia. But for the MTU joint venture side, there will be -- I mean, because we sell -- we sold our OEM, those and then we will have about over 20% or 25% of the export opportunity, and it's also on growing as well.
At this time, there are no further questions from the phone line. We have now reached the end of our Q&A session. I would like to turn the call back over to Mr. Hoh.
Well, thank you all for participating in our conference call. We wish each of you good health, and we look forward to speaking with you again. Thank you.
This concludes today's conference call. Thank you for your participation. You may now disconnect your lines.
Financial data from China Yuchai International Limited
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 3,800 3,800 |
13%
13%
100%
|
|
| - Direct Costs | 3,094 3,094 |
5%
5%
81%
|
|
| Gross Profit | 706 706 |
62%
62%
19%
|
|
| - Selling and Administrative Expenses | 326 326 |
29%
29%
9%
|
|
| - Research and Development Expense | 219 219 |
38%
38%
6%
|
|
| EBITDA | - - |
-
-
|
|
| - Depreciation and Amortization | - - |
-
-
|
|
| EBIT (Operating Income) EBIT | 217 217 |
86%
86%
6%
|
|
| Net Profit | 109 109 |
63%
63%
3%
|
|
In millions USD.
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China Yuchai International Limited Stock News
Company Profile
China Yuchai International Ltd. is a holding company, which engages in the provision of management, financial planning, internal audit services, internal control testing, international financial reporting standard (IFRS) training, business enhancement consulting, and other services. It operates through the following segments: Yuchai, HL Global Enterprises Limited (HLGE), and Corporate. The Yuchai segment conducts manufacturing and sale of diesel engines which are mainly distributed in the People's Republic of China (PRC) market. The HLGE segment includes hospitality and property development activities conducted mainly in the PRC, and Malaysia. The company was founded on April 29, 1993 and is headquartered in Singapore.
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| Head office | Bermuda |
| Employees | 9,189 |
| Founded | 1993 |
| Website | www.cyilimited.com |
