China's Yuchai H2 revenue up 33.5% on engine sales

Overview

• China powertrain maker's H2 2025 revenue rose 33.5% yr/yr, driven by higher engine sales

• Gross profit for H2 2025 increased 58.4% due to higher sales volume and sales mix

• Operating profit for H2 2025 grew 193.1%, aided by lower SG&A expenses as a percentage of revenue

Outlook

• Company did not provide specific future guidance

Result Drivers

• ENGINE SALES GROWTH - Co saw a 28.7% increase in engine sales, driven by a 49.2% rise in truck and bus engine unit sales, outpacing market growth

• SALES MIX IMPROVEMENT - Higher unit sales of heavy-duty and high-horsepower engines improved gross and operating margins

• COST REDUCTION - Continuing cost reduction initiatives contributed to increased gross margin

Company press release: ID:nPn3hqg44a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for China Yuchai International Ltd is $57.50, about 4.5% above its February 23 closing price of $55.03

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

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