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1. Company Snapshot

1.a. Company Description

China 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.

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1.b. Last Insights on CYD

China Yuchai International Limited's recent performance was driven by strong revenue and profit growth in 2024, despite facing liquidity risks, intense competition, and industry shifts. The company's unaudited 2024 second-half and full year financial results showed a significant increase in revenue, with a 14.1% year-over-year growth in the second half of 2024. Additionally, China Yuchai's subsidiary, Guangxi Yuchai Machinery Company Limited, adopted an equity incentive plan, which may attract and retain top talent, further driving growth. The company also entered into a strategic cooperation agreement with Kim Long Motor Hue in Vietnam, expanding its presence in the region.

1.c. Company Highlights

2. China Yuchai International Limited: Strong Financial Performance Driven by Engine Sales and Data Center Business

China Yuchai International Limited reported strong financial results for the first half of 2025, with revenue increasing by 34% year-over-year to RMB 13.8 billion (USD 1.9 billion). Gross profit rose by 30.3% to RMB 1.8 billion (USD 257 million), and operating profit increased by 42.3% year-over-year. Net profit attributable to equity holders of the company rose by 62.2% year-over-year to RMB 365.8 million (USD 51.1 million), resulting in an EPS of 1.36, significantly beating estimates of 0.708.

Publication Date: Aug -14

📋 Highlights
  • Revenue & Profit Surge: Revenue jumped 34% YoY to RMB 13.8B ($1.9B), net profit up 62.2% to RMB 365.8M ($51.1M).
  • Unit Sales Growth: Truck/bus engine sales soared 38% YoY; off-road sales rose 17.5%, driven by marine/power generation (+31.5% YoY).
  • R&D Investment: R&D expenses rose 21.1% to RMB 476.7M ($66.6M), representing 4.0% of revenue.
  • Capacity Expansion: GYMCL entity to boost capacity by 30% by end-2025, while MTU joint venture faces component supply constraints.

Segment Performance

The company's unit sales outperformed nearly every on-road market category, with a 38% year-over-year increase in truck and bus engine unit sales. Off-road market unit sales increased by 17.5% year-over-year, driven by a 31.5% year-over-year increase in marine and power generation market sales. The company's on-highway engine business has a strong market share in China, driven by new customer wins from Tier 1 and Tier 2 OEMs, the introduction of new gas engines, and export growth.

Capacity Expansion and Component Supply

The company plans to increase capacity at its GYMCL entity by 30% by the end of 2025, but supply of components is the bottleneck. The company's research and development expenses increased by 21.1% to RMB 476.7 million (USD 66.6 million), representing 4.0% of revenue in the first half of 2025.

Valuation

The company's strong financial performance is reflected in its valuation metrics. With a P/E Ratio of 23.94, P/B Ratio of 0.84, and P/S Ratio of 0.4, the company's stock is trading at a premium. The company's dividend yield of 3.2% and ROE of 3.14% also suggest that the company is generating significant cash flow and profits. As the company continues to expand its business, particularly in the data center segment, investors may be willing to pay a premium for its stock.

Data Center Business

The company believes it can maintain its market share in long-bore engines for data centers, which is above 10% of the global market. The company may consider raising the average selling price for data center engines in the second half of 2025. The company's Yuchai brand has a capacity of 2,000 units, which is expected to increase by more than 30% by the end of the year.

Joint Venture and OEM Relationships

The company's JV profit is mainly driven by the MTU Yuchai joint venture, with another segment reaching breakeven. The company is working with OEMs to expand into overseas markets, including direct sales to overseas internet giants. As the company continues to strengthen its relationships with OEMs, it is likely to drive further growth in the future.

3. NewsRoom

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Analyzing China Yuchai International (NYSE:CYD) & LCI Industries (NYSE:LCII)

Nov -21

Source: defenseworld.net

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Acadian Asset Management LLC Sells 65,389 Shares of China Yuchai International Limited $CYD

Nov -14

Source: defenseworld.net

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Head-To-Head Analysis: Dana (NYSE:DAN) versus China Yuchai International (NYSE:CYD)

Nov -02

Source: defenseworld.net

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China Yuchai International: Seems To Have Found The Growth Catalyst Needed

Oct -29

Source: seekingalpha.com

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China Yuchai Announces Board Change

Oct -28

Source: prnewswire.com

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Yuchai Launches New Generation High-Horsepower YC16VTF Generator Engine

Oct -24

Source: prnewswire.com

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Are Auto-Tires-Trucks Stocks Lagging China Yuchai International (CYD) This Year?

Sep -19

Source: zacks.com

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Is China Yuchai International (CYD) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

Sep -03

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Yuchai

Expected Growth: 5.5%

Yuchai International's 5.5% growth is driven by increasing demand for heavy-duty trucks and construction machinery in China, fueled by government infrastructure investments and urbanization. Additionally, the company's focus on research and development, cost control, and strategic partnerships have improved operational efficiency and expanded its market share.

HL Global Enterprises Ltd.

Expected Growth: 5.8%

HL Global Enterprises' 5.8% growth is driven by China Yuchai International's strong engine sales, increasing demand for construction machinery, and expanding presence in Southeast Asia. Additionally, the company's diversification into property development and hospitality segments has contributed to its growth momentum.

7. Detailed Products

Diesel Engines

China Yuchai International Limited designs, manufactures, and sells diesel engines for various applications, including on-road, off-road, and marine uses.

Natural Gas Engines

The company offers natural gas engines for use in on-road and off-road applications, providing a cleaner and more environmentally friendly alternative to traditional diesel engines.

Hybrid Engines

China Yuchai International Limited develops and manufactures hybrid engines that combine traditional diesel or natural gas engines with electric motors for improved fuel efficiency and reduced emissions.

Diesel Power Generators

The company designs and manufactures diesel power generators for use in various industries, including construction, mining, and telecommunications.

Marine Engines

China Yuchai International Limited offers marine engines for use in fishing boats, passenger ferries, and other marine vessels.

8. China Yuchai International Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for China Yuchai International Limited is medium due to the presence of alternative products in the market, but the company's strong brand reputation and quality products reduce the likelihood of customers switching to substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong distribution network and wide range of products, making it difficult for customers to negotiate prices or demand customized products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for raw materials, but the company's large scale of operations and long-term contracts reduce the suppliers' bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise and technology.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry, leading to intense competition for market share and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.92%
Debt Cost 4.99%
Equity Weight 78.08%
Equity Cost 9.17%
WACC 8.25%
Leverage 28.07%

11. Quality Control: China Yuchai International Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BW LPG

A-Score: 7.3/10

Value: 7.0

Growth: 8.6

Quality: 5.4

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

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China Yuchai

A-Score: 6.6/10

Value: 6.8

Growth: 4.9

Quality: 6.1

Yield: 5.0

Momentum: 10.0

Volatility: 6.7

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Danieli

A-Score: 5.3/10

Value: 7.0

Growth: 3.4

Quality: 5.2

Yield: 2.5

Momentum: 9.0

Volatility: 4.7

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Cargotec

A-Score: 5.2/10

Value: 6.9

Growth: 6.0

Quality: 5.9

Yield: 6.2

Momentum: 2.5

Volatility: 4.0

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Sulzer

A-Score: 5.2/10

Value: 4.7

Growth: 3.8

Quality: 5.9

Yield: 6.9

Momentum: 3.5

Volatility: 6.3

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CSW Industrials

A-Score: 4.9/10

Value: 2.4

Growth: 8.2

Quality: 7.9

Yield: 0.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.75$

Current Price

34.75$

Potential

-0.00%

Expected Cash-Flows