#China #Singapore #China Yuchai #Guangxi Yuchai #MTU Yuchai

China Yuchai International Limited Reports 2024 Financial Performance

In a recent press release, China Yuchai International Limited (NYSE: CYD), one of the leading manufacturers of powertrain solutions, announced its unaudited consolidated financial results for the second half and the entire fiscal year of 2024. The company operates primarily through its subsidiary, Guangxi Yuchai Machinery Company Limited, which has a significant presence in the Chinese engine manufacturing market.

Financial Highlights

For the second half of 2024, China Yuchai managed to generate revenue of RMB 8.8 billion (approximately USD 1.2 billion), a slight decrease from RMB 8.9 billion in the same period of 2023. Despite this, the company saw an increase in gross profit, which rose by 14.3% to reach RMB 1.4 billion (USD 195.7 million) with an improved gross margin of 15.9%, up from 13.9%.

However, the net profit for the period was down, amounting to RMB 155.1 million (USD 21.6 million), compared to RMB 169.8 million in the previous year. Basic and diluted earnings per share also saw a drop to RMB 2.19 (USD 0.30), down from RMB 2.62 in the previous year’s second half.

Annual Overview

For the full year 2024, the company experienced a revenue growth of 6.0%, bringing the total to RMB 19.1 billion (USD 2.7 billion). This growth was accompanied by a gross profit increment of 10.8%, amounting to RMB 2.8 billion (USD 392.1 million) and demonstrating a gross margin increase to 14.7% from 14.1%. Additionally, the total engines sold rose significantly by 13.7% to 356,586 units compared to 313,493 units in 2023.

The company’s operating profit for 2024 was slightly down at RMB 597 million (USD 83 million), compared to RMB 609.4 million the year before. However, profits attributable to shareholders saw a notable increase to RMB 323.1 million (USD 44.9 million) from RMB 285.5 million in FY 2023.

Segment Performance

China Yuchai's results reflect strong performance in its truck and bus engine segments. This growth occurred despite a reported decline of 2.6% in the overall commercial vehicle sector in China, showcasing the company’s resilience and market adaptation.

In addition, the boost in operating income, which surged by 30.1% to RMB 575.7 million (USD 80.1 million), can be attributed to greater government grants and better management of value-added tax rebates. The research and development (R&D) expenses, which increased to RMB 984.7 million (USD 137 million), align with the company’s ongoing efforts to innovate and improve engine efficiency aligned with new environmental standards.

Strategic Developments

Mr. Weng Ming Hoh, the President of China Yuchai, stated, "We have recorded profitable sales growth across diverse markets, reinforcing our market position. Our focus on R&D continues to spur advancements in engine technologies, with particular attention on complying with National VI and Tier-4 emission standards."

Moreover, the company has expanded its strategic collaborations, which have significantly contributed to its profitability, emphasizing the importance of alliances in navigating the competitive landscape.

Future Outlook

As the industry continues to evolve amid increasing competition and market turbulence, China Yuchai is dedicated to enhancing shareholder value. The company executed a share buyback program in mid-2024, purchasing 3.3 million shares for USD 39.8 million, illustrating its commitment to returning value to its investors.

As of December 31, 2024, China Yuchai holds cash and bank balances amounting to RMB 6.4 billion (USD 895 million). This strong liquidity position will support its operations and future investments.

Conclusion

In conclusion, China Yuchai International Limited's financial results for 2024 highlight a balance of growth amidst challenging market conditions. As the company continues to innovate and expand, it remains a formidable player in the powertrain solution sector, promising future developments that align with the evolving needs of the automotive market.

For more detailed information on their financial performance, stakeholders are encouraged to visit the company's investor relations page or join the upcoming conference call scheduled for February 25, 2025, where executives will provide further insights and answer questions.