Breaking Down China Yuchai International Limited (CYD) Financial Health: Key Insights for Investors

Are you keeping a close watch on China Yuchai International (CYD) and wondering about its financial stability? Did you know that in 2024, the company saw a 6% increase in revenue, reaching RMB 19.1 billion (approximately $2.7 billion USD), alongside a 10.8% jump in gross profit to RMB 2.8 billion (around $392.1 million USD)? With a dividend yield of 2.56% and a recent dividend payment of $0.38 per share, is CYD a solid investment or are there hidden risks beneath the surface? Keep reading to explore a detailed breakdown of CYD's financial health, revealing key insights for investors.

China Yuchai International Limited (CYD) Revenue Analysis

Understanding the revenue streams of China Yuchai International Limited (CYD) is crucial for investors seeking to assess the company's financial health and growth potential. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights into CYD's performance.

China Yuchai International Limited's primary revenue source is the sale of diesel engines. These engines are used in a variety of applications, including trucks, buses, construction equipment, and agricultural machinery. The company also generates revenue from the sale of parts and components, as well as providing service and maintenance for its engines.

Analyzing year-over-year revenue growth rates reveals important trends in CYD's financial performance. Factors influencing these trends include economic conditions in China and other key markets, changes in government regulations, and the level of competition in the diesel engine industry. Here's what we know about their financial data:

• In 2023, China Yuchai International Limited reported revenue of $1.4 billion.
• The company's gross profit for 2023 was $278.4 million.

Understanding the contribution of different business segments to overall revenue is essential for a comprehensive financial analysis. For China Yuchai, the key segment is the manufacture and sale of diesel engines. However, revenue is also derived from the distribution of automotive parts and components.

Significant changes in revenue streams may indicate strategic shifts or emerging challenges. Investors should monitor these changes closely to understand their potential impact on CYD's future performance. For instance, shifts in product mix, expansion into new markets, or the introduction of innovative technologies can all influence revenue streams.

Below is a table summarizing key financial data for China Yuchai International Limited:

For further insights into China Yuchai International Limited's financial health, you can explore: Breaking Down China Yuchai International Limited (CYD) Financial Health: Key Insights for Investors

China Yuchai International Limited (CYD) Profitability Metrics

Analyzing the profitability of China Yuchai International Limited (CYD) provides key insights into its financial health and operational efficiency. Profitability metrics, such as gross profit, operating profit, and net profit margins, reveal how effectively the company generates earnings from its revenue and manages its expenses.

In 2024, CYD reported a gross profit of $344.8 million. The operating profit for the same period stood at $164.2 million, while the net profit attributable to China Yuchai's shareholders was $123.7 million. Understanding these figures is crucial for assessing the company's financial performance.

Here's a breakdown of China Yuchai International Limited's profitability margins:

• Gross Profit Margin: 22.9% in 2024
• Operating Profit Margin: 10.9% in 2024
• Net Profit Margin: 8.2% in 2024

Examining the trends in profitability over time helps investors understand the sustainability and growth potential of China Yuchai International Limited. Fluctuations in these margins can indicate changes in the company's operational efficiency, market conditions, or strategic decisions. For instance, a declining gross margin may suggest rising production costs or pricing pressures, while an increasing net profit margin could reflect improved cost management or higher sales volumes.

A comparison of China Yuchai International Limited's profitability ratios with industry averages provides valuable context. If CYD's margins are higher than its peers, it may indicate a competitive advantage, such as superior technology, efficient operations, or a strong brand. Conversely, lower margins may signal areas for improvement.

Operational efficiency is a critical driver of profitability. Effective cost management and favorable gross margin trends are essential for sustaining and improving profitability. For example, a company that can reduce its cost of goods sold (COGS) will likely see an improvement in its gross margin, which can then translate to higher operating and net profit margins, assuming other factors remain constant.

The table below presents a summary of China Yuchai International Limited's key profitability metrics for 2024:

Understanding China Yuchai International Limited's profitability is essential for investors. By analyzing these metrics and trends, investors can gain valuable insights into the company's financial health and make informed investment decisions. For more insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of China Yuchai International Limited (CYD).

China Yuchai International Limited (CYD) Debt vs. Equity Structure

Understanding China Yuchai International Limited's (CYD) financial health requires a close look at its debt and equity structure. This involves analyzing the levels of debt the company carries, how it compares to its equity, and how these factors influence its financial stability and growth prospects. For additional insights into who is investing in CYD and why, check out Exploring China Yuchai International Limited (CYD) Investor Profile: Who’s Buying and Why?

A critical aspect of CYD's financial strategy is managing its debt. This includes both short-term obligations, which are due within a year, and long-term debt, which extends beyond a year. The balance between these two types of debt can indicate the company's liquidity and its ability to meet its immediate and future financial obligations.

The debt-to-equity ratio is a key metric for evaluating CYD's financial leverage. It compares the total debt to shareholders' equity and provides insight into how much the company relies on debt versus equity to finance its operations. According to the information that is available, the debt to equity ratio of CYD is fluctuating. For instance, one source mentions that for the period ending June 2023, the debt to equity ratio stood at 34.7%. Monitoring this ratio over time and comparing it to industry averages can reveal whether CYD's leverage is conservative or aggressive relative to its peers.

Recent financial activities, such as new debt issuances, changes in credit ratings, or refinancing efforts, can significantly impact CYD's debt profile. These actions can affect the company's interest expenses, repayment schedules, and overall financial risk. Staying informed about these activities is essential for assessing CYD's financial management and its ability to optimize its capital structure.

Balancing debt and equity is crucial for sustainable growth. While debt can provide capital for expansion and investment, excessive debt can increase financial risk and limit flexibility. Equity, on the other hand, represents ownership and does not require repayment, but it can dilute existing shareholders' ownership. CYD's approach to balancing debt and equity reflects its overall financial strategy and its priorities in terms of risk management and growth.

Below is a summary of key considerations regarding CYD's debt and equity structure:

• Debt Levels: Examination of both short-term and long-term debt.
• Debt-to-Equity Ratio: Comparison against industry standards to gauge leverage.
• Recent Activities: Monitoring debt issuances, credit ratings, and refinancing.
• Financing Balance: Assessment of the equilibrium between debt and equity financing.

China Yuchai International Limited (CYD) Liquidity and Solvency

Understanding China Yuchai International Limited's (CYD) financial health requires a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its capacity to meet long-term liabilities.

Here’s an overview:

• Current and Quick Ratios: These ratios offer insights into CYD's ability to cover its short-term liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates better liquidity. The quick ratio, also known as the acid-test ratio, excludes inventories from current assets to provide a more conservative measure of liquidity.
• Working Capital Trends: Monitoring the trend of CYD's working capital (current assets minus current liabilities) helps to identify whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: Analyzing the cash flow statement provides a clear picture of how CYD generates and uses cash. It is important to look at cash flow from operating, investing, and financing activities to understand the overall cash flow trends.

For detailed insights, refer to Breaking Down China Yuchai International Limited (CYD) Financial Health: Key Insights for Investors.

Here is a sample structure for presenting the information:

Analyzing these elements will give you a comprehensive view of China Yuchai International Limited’s liquidity situation, highlighting both strengths and potential areas of concern.

China Yuchai International Limited (CYD) Valuation Analysis

Assessing whether China Yuchai International Limited (CYD) is overvalued or undervalued requires a look at several key financial metrics and market indicators. Here's a breakdown:

• More information about China Yuchai International Limited (CYD), including its Mission Statement, Vision, & Core Values.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is a key indicator of how much investors are willing to pay for each dollar of earnings.
  • The P/E ratio for China Yuchai varies across different sources, with recent values including 12.1x, 12.88, and 12.94.
  • Historical data shows that China Yuchai's P/E ratio has fluctuated, peaking at 12.0x in December 2022 and hitting a low of 4.1x in December 2018.
  • Compared to peers, China Yuchai's P/E ratio is around 10.8x, which is similar to Brunswick Corporation (9.9x) and Haitian International Holdings Limited (10.4x).
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market price to its book value per share, indicating whether a stock is trading at a discount or premium to its net asset value.
  • China Yuchai's P/B ratio is approximately 0.43 to 0.66.
  • A P/B ratio below 1 may suggest that the stock is undervalued relative to its assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess a company's valuation by comparing its enterprise value to its earnings before interest, taxes, depreciation, and amortization.
  • China Yuchai's EV/EBITDA ratio is around 0.73 to 2.83.

Stock Price Trends:

• Over the last 12 months, China Yuchai’s stock price has increased by approximately 10.64% to 72.08%, depending on the source.
• Recent data from April 2025 shows the stock trading around $14.30 to $14.51.
• The 52-week range is $7.95 to $26.10, indicating significant price volatility.

Dividend Yield and Payout Ratios:

• Dividend Yield: China Yuchai offers a forward dividend yield of approximately 2.66%.
• Dividend Payout Ratio: The dividend payout ratio is around 33.78% to 38.56%, suggesting that the dividends are well-covered by earnings.
• The annual dividend rate is $0.38 per share.

Analyst Consensus:

• Analysts' recommendations vary, with some suggesting a 'Sell' rating.
• The average 12-month price target is around $17.44 to $17.95, implying a potential upside of approximately 7.18% to 22.22%.
• Price targets range from a low of $13.33 to a high of $23.10.

In conclusion, when evaluating whether China Yuchai International Limited (CYD) is overvalued or undervalued, it's important to consider these ratios, stock trends, and analyst opinions. These metrics provide a comprehensive view for making informed investment decisions.

China Yuchai International Limited (CYD) Risk Factors

China Yuchai International Limited (CYD) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The engine manufacturing industry is highly competitive. CYD competes with both international and domestic players, some of which may have greater financial and technical resources. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability.

Regulatory Changes: CYD's operations are subject to various environmental and safety regulations in China. Changes to these regulations, such as stricter emission standards, could require significant investments in new technologies or modifications to existing products. Failure to comply with new regulations could result in fines, production disruptions, or loss of licenses.

Market Conditions: Economic downturns in China or globally could reduce demand for engines, impacting CYD's sales and profitability. Fluctuations in commodity prices, particularly steel and other raw materials, can also affect production costs and margins.

Specific operational, financial, and strategic risks can be found in CYD's filings. For example, the 2024 annual report highlights several key risk areas:

• Supply Chain Disruptions: Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or other factors, could impact CYD's ability to procure necessary components and materials, leading to production delays and increased costs.
• Technological Obsolescence: The rapid pace of technological change in the engine industry requires continuous innovation. Failure to keep pace with advancements in engine technology, such as electric or hybrid engines, could erode CYD's competitive position.
• Credit Risk: CYD faces credit risk related to its customers' ability to pay for products. Economic downturns or industry-specific challenges could increase the likelihood of defaults, impacting CYD's financial performance.

Mitigation strategies and plans, if available, are also outlined in CYD's reports. These may include:

• Diversifying the supply base to reduce reliance on single suppliers.
• Investing in research and development to stay ahead of technological advancements.
• Implementing robust credit risk management practices to minimize potential losses.

Understanding these risks and mitigation strategies is essential for assessing the overall financial health and investment potential of China Yuchai International Limited. You can also get more insights about the company on: Mission Statement, Vision, & Core Values of China Yuchai International Limited (CYD).

China Yuchai International Limited (CYD) Growth Opportunities

For investors eyeing China Yuchai International Limited (CYD), understanding its future growth prospects is crucial. Several factors are poised to influence the company's trajectory, from innovative products to strategic market expansions.

Key growth drivers for China Yuchai include:

• Product Innovations: Continuous development and introduction of new engine technologies, particularly those that meet evolving emission standards and efficiency demands.
• Market Expansion: Leveraging its established presence in China to tap into growing markets in Southeast Asia and other regions.
• Acquisitions and Partnerships: Pursuing strategic acquisitions or partnerships to expand its product portfolio and market reach.

While specific future revenue growth projections and earnings estimates for China Yuchai weren't available in the provided search results, several strategic initiatives indicate potential for growth:

• New Energy Initiatives: Focusing on the development and production of engines for hybrid and electric vehicles, aligning with the global shift towards cleaner energy.
• High-Efficiency Engines: Investing in research and development to produce more fuel-efficient and environmentally friendly engines.

China Yuchai possesses several competitive advantages that could position it for sustained growth:

• Strong Brand Recognition: A well-established brand in China's engine market.
• Extensive Distribution Network: A widespread network for sales and service across China.
• Technological Capabilities: A proven track record of developing and manufacturing reliable engines.

Keep in mind that the financial data is based on the 2024 fiscal year data.

Here is a brief overview of China Yuchai International Limited's (CYD) financial data:

For more detailed insights into China Yuchai International Limited (CYD) financial health, check out: Breaking Down China Yuchai International Limited (CYD) Financial Health: Key Insights for Investors