China Yuchai International (NYSE:CYD) H2 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsChoon Sen Loo - CFOFiona Lim - Global Financial Crimes Compliance Specialist of Global Economic SanctionsKelvin Lai - General Manager of OperationsKevin Theiss - Head of Investor RelationsWeng Ming Hoh - President and DirectorConference Call ParticipantsSteven Liu - Equity Research AnalystWei Shen - Equity Research Analyst of China Auto & Industrials ResearchYing Si - Equity Research AnalystKevin Th ...

China Yuchai International (NYSE:CYD) H2 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsChoon Sen Loo - CFOFiona Lim - Global Financial Crimes Compliance Specialist of Global Economic SanctionsKelvin Lai - General Manager of OperationsKevin Theiss - Head of Investor RelationsWeng Ming Hoh - President and DirectorConference Call ParticipantsSteven Liu - Equity Research AnalystWei Shen - Equity Research Analyst of China Auto & Industrials ResearchYing Si - Equity Research AnalystOperator ...

China Yuchai International (NYSE:CYD) H2 2025 Earnings call February 24, 2026 08:00 AM ET Speaker5Good day, and thank you for standing by. Welcome to China Yuchai International Limited, second half, 2025 financial results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is ra ...

Core Viewpoint - China Yuchai International Limited reported significant growth in engine sales and financial performance for the second half of 2025 and the full fiscal year 2025, driven by strong demand in the truck and bus segments, alongside strategic expansions in international markets [1][2]. Financial Highlights for 2H 2025 - Total number of engines sold increased by 28.7% to 210,913 units compared to 163,843 units in 2H 2024 [1]. - Basic and diluted earnings per share rose by 108.7% to RMB 4.57 (US$ 0.65) from RMB 2.19 in 2H 2024 [1]. - Profit for the period increased by 77.7% to RMB 275.7 million (US$ 39.2 million) compared to RMB 155.1 million in 2H 2024 [1]. - Operating profit grew by 193.1% to RMB 469.2 million (US$ 66.7 million) from RMB 160.1 million in 2H 2024 [1]. - Revenue increased by 33.5% to RMB 11.8 billion (US$ 1.7 billion) compared to RMB 8.8 billion in 2H 2024 [1]. Financial Highlights for FY 2025 - Total number of engines sold increased by 29.4% to 461,309 units compared to 356,586 units in FY 2024 [2]. - Basic and diluted earnings per share increased by 74.4% to RMB 14.32 (US$ 2.04) from RMB 8.21 in FY 2024 [2]. - Profit for the year increased by 64.8% to RMB 810.5 million (US$ 115.3 million) compared to RMB 491.7 million in FY 2024 [2]. - Operating profit increased by 82.7% to RMB 1.1 billion (US$ 155.2 million) compared to RMB 597.0 million in FY 2024 [2]. - Revenue grew by 28.9% to RMB 24.7 billion (US$ 3.5 billion) compared to RMB 19.1 billion in FY 2024 [2]. Sales Performance - Truck and bus engine unit sales rose by 42.8%, significantly outpacing the market sales growth of 4.5% for 2025 [2]. - Total truck engine unit sales rose by 50.7% YoY, compared to a 5.9% YoY increase in truck unit sales [2]. - Off-road engine unit sales increased by 13.0% YoY, with industrial and marine sales growth exceeding 24% YoY [2]. Research and Development - R&D expenses increased by 48.0% to RMB 874.9 million (US$ 124.5 million) compared to RMB 591.1 million in 2H 2024 [1]. - Total R&D expenditure, including capitalized costs, was RMB 974.2 million (US$ 138.6 million), representing 8.3% of revenue in 2H 2025 [1]. Balance Sheet Highlights as of December 31, 2025 - Short-term and long-term loans and borrowings were RMB 2.0 billion (US$ 287.4 million), down from RMB 2.5 billion at the end of FY 2024 [2]. - Trade and bills payables were RMB 11.1 billion (US$ 1.6 billion), compared to RMB 8.5 billion at the end of FY 2024 [2]. - Cash and bank balances were RMB 7.9 billion (US$ 1.1 billion), up from RMB 6.4 billion at the end of FY 2024 [2]. Strategic Developments - The company expanded its international presence with a strategic agreement in Vietnam and shipped products to Germany and Mexico [2]. - An indirect subsidiary filed for a potential listing on the Hong Kong Stock Exchange in January 2026 [2].

Group 1 - Steven Cress is the Head of Quantitative Strategies at Seeking Alpha, managing quant ratings and factor grades on stocks and ETFs [1][2] - Cress leads Alpha Picks, selecting two attractive stocks to buy each month and determining when to sell them [1][2] - The Seeking Alpha Quant Rating system, created by Cress, interprets data for investors and offers insights on investment directions [2] Group 2 - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, enhancing his expertise in investment topics [2] - Prior to Seeking Alpha, Cress founded CressCap Investment Research and Cress Capital Management, and worked at Morgan Stanley and Northern Trust [2]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: China Yuchai (CYD) - China Yuchai currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, CYD shares have increased by 7.22%, significantly outperforming the Zacks Automotive - Original Equipment industry, which rose by only 0.25% [6] - In a longer timeframe, CYD shares have surged by 55.44% over the past quarter and an impressive 353.55% over the last year, while the S&P 500 has only increased by 1.74% and 13.08% respectively [7] Trading Volume - The average 20-day trading volume for CYD is 157,076 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for CYD has been revised upward, increasing the consensus estimate from $2.09 to $2.97 for the full year [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, CYD is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling option for investors seeking short-term gains [12]

Core Viewpoint - The analysis compares China Yuchai (CYD) and Ferrari (RACE) to determine which stock represents a better undervalued investment opportunity for investors in the Automotive - Original Equipment sector [1]. Valuation Metrics - CYD has a forward P/E ratio of 17.66, significantly lower than RACE's forward P/E of 35.56, indicating that CYD may be undervalued relative to RACE [5]. - The PEG ratio for CYD is 0.31, while RACE has a PEG ratio of 3.96, suggesting that CYD's expected earnings growth is more favorable compared to its price [5]. - CYD's P/B ratio stands at 1.15, compared to RACE's P/B of 21.46, further supporting the notion that CYD is undervalued [6]. Earnings Outlook - CYD is currently exhibiting an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, where it holds a 1 (Strong Buy) rating, in contrast to RACE's 3 (Hold) rating [3][7].

Core Viewpoint - China Yuchai International Limited has announced its participation in the Guangxi Yuchai Double Growth Fund, aiming to invest in innovative solutions related to its business, particularly in emerging engine-related and new energy technologies [1][2]. Group 1: Investment Details - Yuchai, along with two governmental entities and CMSC, holds interests of 33.3%, 41.7%, and 25.0% respectively in the Growth Fund [2]. - The total commitment to the Growth Fund is RMB 1 billion, to be contributed in three tranches of 40%, 30%, and 30% based on investment progress, with Yuchai's share being RMB 333 million [3]. Group 2: Company Overview - China Yuchai, through its subsidiary Guangxi Yuchai Machinery Company Limited, is a leading powertrain solution provider in China, specializing in various engine types for multiple applications [4]. - The company has a strong market presence, having sold 356,586 engines in 2024, and is known for its high-quality products and reliable after-sales support [4].

Core Viewpoint - China Yuchai International Limited has acquired a 27.97% equity interest in Nanyue Diankong (Hengyang) Industrial Technology Company Limited for approximately RMB 176.2 million, enhancing its operational control and supply chain in key components for powertrain solutions [1][2]. Group 1: Acquisition Details - Yuchai has acquired 83,918,495 shares of NYDK, becoming the second-largest shareholder [1]. - The acquisition cost was approximately RMB 176.2 million in cash [1]. - Yuchai has entered into a concerted action agreement with Hunan Hengyang Auto Parts Factory, allowing it to secure operational control over NYDK [2]. Group 2: NYDK Overview - NYDK specializes in fuel injection systems, including common rail systems, unit pumps, and mechanical pumps [3]. Group 3: Company Background - China Yuchai, through its subsidiary Guangxi Yuchai Machinery Company Limited, is a leading powertrain solution provider in China, focusing on various engine types for multiple applications [4]. - In 2024, Yuchai sold 356,586 engines, reinforcing its market position [4].

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The investment strategy involves seeking deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks [1] - The strategy also includes identifying wide moat stocks, which are high-quality businesses with sustainable competitive advantages [1] Group 2: Research Service - The research service, Asia Value & Moat Stocks, provides value investors with ideas and watch lists that are updated monthly [1] - The service is led by an analyst with over a decade of experience in Asian equity markets, focusing on both buy and sell sides [1]