When I see the dividends stack up, it reminds me that I'm on the path to achieving financial independence (passive income > expenses). While I'mHi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards f ...

Cummins Inc. (NYSE:CMI) is one of the 20 Best Stocks to Buy and Hold for a Lifetime, delivering consistent revenue and dividend growth. Melius Research Raises Cummins Inc. (CMI) from Hold to Buy, Share Price Reaches All-Time High Melius Research raised Cummins Inc. (NYSE:CMI) from Hold to Buy on September 3, 2025, pointing to the demand for artificial intelligence (AI) as a major growth driver. With a $54.46 billion market valuation and $33.72 billion in yearly revenue, Cummins Inc. (NYSE:CMI)  is a mult ...

J P M O R G A N Europe Equity Research 26 September 2025 Akash Gupta AC (44-20) 7742-7978 akash.z.gupta@jpmorgan.com J.P. Morgan Securities plc Global Power Gen Powering the data centres - A look at high speed gas engines We had the opportunity to visit INNIO HQ and its site in Jenbach, Austria, as part of an analyst tour organised by the company. INNIO (not listed), formerly known as GE Distributed Power Business, is a leading manufacturer of gas-powered high- speed engines. Its engines offer high energy i ...

Group 1 - Cummins Inc. (NYSE:CMI) is considered a relatively cheap stock within the S&P 500, with both headwinds and positives highlighted by Jim Cramer [1] - The company's core truck engine business faces challenges due to prolonged weakness in the freight market, but it has underappreciated exposure to the data center market through backup power generators [1] - Cummins delivers a range of power solutions, including diesel and natural gas engines, drivetrain systems, and electrified technologies, and has seen stock gains of approximately 45% since Cramer's previous comments [1] Group 2 - The potential of Cummins as an investment is acknowledged, but certain AI stocks are believed to offer greater upside potential and less downside risk [2]

Weichai Power (000338.SZ) Earnings Review Summary Company Overview - Weichai Power is China's largest manufacturer of internal combustion engines, holding approximately 18% market share in the diesel engine segment. The company operates in various verticals including commercial vehicles, construction machinery, agricultural equipment, marine, and power generation [doc id='28'][doc id='29']. Key Takeaways from the Earnings Call 1. **Sales Performance**: - Strong rebound in LNG engine sales volume in August, with nearly 10,000 units produced [doc id='21']. - Large-bore engine shipments grew by 41% year-over-year in 1H25, totaling 5,000 units [doc id='3']. - Management expects full-year sales volume to be at least 11% higher than last year, driven by strong contract orders and anticipated growth in e-powertrain sales [doc id='21']. 2. **Market Outlook**: - Robust outlook for large-bore engines reaffirmed, with a capacity expansion plan on track to increase production by 50-100% [doc id='1']. - E-powertrain business projected to see a 2-3x increase in sales in 2H25, potentially offsetting engine total addressable market (TAM) erosion due to electrification [doc id='1']. 3. **Pricing Strategy**: - Weichai has maintained a disciplined pricing strategy amidst intensified competition, which led to some engine share losses in 1H25 [doc id='1'][doc id='21']. - Management emphasized that customers can recover the additional purchase cost of Weichai engines within 0.5 to 1 year due to higher product efficiency [doc id='22']. 4. **Shareholder Returns**: - The company is committed to enhancing shareholder returns through a high dividend payout ratio of 55% and share buybacks, with up to RMB 1 billion allocated for repurchases [doc id='1'][doc id='25']. 5. **Financial Projections**: - Adjusted 2025E-27E EPS estimates, with a target price for A-shares lowered to RMB 20.5 and H-shares maintained at HK$ 21.0 [doc id='2'][doc id='26']. - Revenue growth projected at 5.7% for 2025E, with EBITDA growth of 0.5% [doc id='13']. 6. **Aftermarket Business**: - The engine aftermarket business reported sales of RMB 4 billion in 1H25, reflecting a 13% year-over-year increase, driven by improvements in total cost of ownership (TCO) management services [doc id='23']. 7. **Electrification and New Energy Transition**: - Management expects electrification penetration to rise to 25-28% for both heavy-duty trucks (HDT) and light-duty trucks (LDT) [doc id='27']. - Weichai is investing in new energy technologies, including hybrid and solid-state batteries, with sales of hundreds of units already achieved [doc id='27']. Risks and Challenges - Potential risks include slower-than-expected macroeconomic activity, weaker global economic growth, and challenges related to the shift towards higher electrification penetration [doc id='31']. Conclusion - Weichai Power is positioned for growth with a strong rebound in sales, a disciplined pricing strategy, and a commitment to shareholder returns. The company is navigating the transition to new energy while maintaining a robust outlook for its traditional engine business.

Weichai Power (000338.SZ) Conference Call Summary Company Overview - **Company**: Weichai Power - **Ticker**: 000338.SZ - **Reporting Period**: 2Q25 Key Financial Highlights - **Net Profit**: Rmb2.93 billion, down 11% year-over-year (yoy) but up 8% quarter-over-quarter (qoq), exceeding estimates by 7% due to better-than-expected margins [1] - **Top-line Revenue**: Rmb55.69 billion, down 1% yoy, largely in line with expectations [4] - **Gross Profit Margin (GPM)**: 22.1%, up 0.3 percentage points yoy, and 1.6 percentage points above estimates [10] - **Interim Cash Dividend**: Rmb0.358 per share, representing a 55% payout ratio and a 2% yield [1][14] Segment Performance - **Engine Unit Profitability**: - Medium-to-heavy-duty engines saw a 25% yoy increase in profitability in 1H25 [2] - GPM for medium-to-large-duty engines increased by 3.4 percentage points yoy, marking a historical high [11] - **Sales by Segment**: - **Engines**: 27% of total sales, +3% yoy in 1H25, driven by an 11% increase in average selling price (ASP) [4] - **Auto and Auto Parts**: 29% of total sales, +4% yoy in 1H25, with HDT sales volume up 15% yoy [9] - **Intelligent Logistics**: 36% of total sales, slight decline of 2% yoy in 1H25, but strong order bookings (+22% yoy) indicate a positive outlook [9] - **Large-bore Engines**: Sales up 73% yoy in 1H25, driven by data center demand [9] - **New Energy Powertrain**: Sales of Rmb1.21 billion, contributing 1% of total sales [10] Strategic Growth Areas - New strategic growth pillars include large-bore engines, e-powertrain, after-market services, and engine exports, collectively representing ~10% of total sales with a combined growth of 39% yoy [2][8] - Strong performance from overseas subsidiaries, particularly PSI in the US and KION in Germany, with significant earnings growth [2] Challenges and Risks - Decline in LNG HDT sales due to unfavorable price spreads and slower subsidy rollout, with domestic LNG engine sales volume down over 40% yoy in 2Q25 [7] - Overall medium-to-heavy-duty engine sales revenue down 13% yoy, offset by strong performance in PSI and light-duty engine sales [7] Future Outlook - Upcoming analyst briefing topics include demand outlook for HDTs, electrification strategies, and insights on new growth pillars [3] - Continued focus on digitalization, new energy powertrains, and international expansion as part of the medium-to-long-term strategy [8] Cash Flow and Balance Sheet - Strong operating cash inflow of Rmb11.48 billion in 2Q25, with solid free cash flow generation of Rmb9.43 billion [14] - Net cash position increased to Rmb26.96 billion from Rmb22.00 billion at the end of 1Q25 [14] Conclusion - Weichai Power's 2Q25 results reflect a resilient performance despite challenges in certain segments, with strong profitability and strategic growth initiatives positioning the company favorably for future growth. The commitment to returning value to shareholders through dividends and buybacks further underscores its financial health.

Group 1 - China Yuchai International Limited is considering a potential listing of one of its indirect subsidiaries on a foreign stock exchange, with preparatory work already commenced [1][2] - The potential listing is in preliminary stages and is contingent upon due diligence results, corporate reorganization, regulatory approvals, and market conditions, indicating uncertainty regarding its realization [2] - China Yuchai, through its subsidiary Guangxi Yuchai Machinery Company Limited, is a leading powertrain solution provider in China, specializing in a wide range of engines for various applications [3] Group 2 - Guangxi Yuchai Machinery Company Limited offers a comprehensive portfolio of powertrain solutions, including diesel, natural gas, and new energy products such as pure electric and hybrid systems [3] - In 2024, Yuchai sold 356,586 engines, reinforcing its position as a major manufacturer and distributor of engines in China [3]

Core Viewpoint - China Yuchai International Limited has successfully launched the mtu Series 2000 engine through its joint venture MTU Yuchai Power Co., Ltd, marking an expansion of its product line and enhancing its market position in power generation solutions [1][4]. Group 1: Company Overview - China Yuchai International Limited is a leading powertrain solution provider in China, specializing in a wide range of engines for various applications including trucks, buses, and power generation [5]. - The company operates through its main subsidiary, Guangxi Yuchai Machinery Company Limited, which has established a strong market presence and brand reputation since its founding in 1951 [5]. - In 2024, Yuchai sold 356,586 engines, reinforcing its status as a major manufacturer and distributor in the engine market [5]. Group 2: Product Development - The mtu Series 2000 engine is designed for both primary and backup power generation applications, featuring high power performance, excellent fuel efficiency, and stability [4]. - The joint venture MYP has also been expanding its production of mtu Series 4000 engines, which have been well-received in the high-end power generation market, with cumulative production exceeding 3,000 units since inception [2][3]. - The production of the mtu Series 2000 engines is taking place at MYP's Suzhou plant, while the mtu Series 4000 S83 engines are being produced at the Yulin plant, diversifying MYP's product offerings [3]. Group 3: Market Strategy - The introduction of the mtu Series 2000 engine is expected to enhance the company's ability to expand its customer base and sustain long-term sales growth, as highlighted by the company's president [5]. - The joint venture between Yuchai's Marine and Genset Power subsidiary and Rolls-Royce's Power Systems division aims to leverage both companies' strengths to capture a larger share of the power generation market [2].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Cummins Inc. due to a class action lawsuit alleging breaches of fiduciary duties by the company's board of directors during the specified class period [1][2]. Group 1: Legal Investigation - The investigation is focused on whether Cummins' board of directors has breached their fiduciary duties to the company [1]. - A class action complaint was filed against Cummins on March 15, 2024, covering a class period from April 30, 2019, to December 21, 2023 [1]. Group 2: Allegations in the Lawsuit - The lawsuit claims that Cummins made materially false and misleading statements regarding its compliance with environmental regulations [2]. - It is alleged that Cummins continued to produce engines with unlawful emission defeating devices from 2019 to 2023, contradicting their assurances made post-April 2019 [2]. - The company is accused of understating its legal and regulatory risks while overstating its commitment to environmental protection [2].

Company Overview - China Yuchai International Limited is one of the largest powertrain solution manufacturers in China, primarily through its subsidiary Guangxi Yuchai Machinery Company Limited [1][3] - Yuchai specializes in the design, manufacture, assembly, and sale of a variety of engines for trucks, buses, and other applications, including diesel, natural gas, and new energy products [3] Recent Developments - Yuchai Foundry commenced the shipment of its first batch of 30,000 high-end cylinder head castings to a German customer, marking a significant recognition of its product quality [1] - The production process for these castings utilized special alloys and vermicular iron thermal analysis technology to meet stringent German technical standards [2] Market Position - In 2024, Yuchai sold 356,586 engines, reinforcing its position as a leading manufacturer and distributor of engines in China [3] - The company has established a strong brand reputation and significant market share, supported by a robust research and development team [3]