China Yuchai International is a vertically integrated, cash-rich engine maker trading at a deep value, with 80% of its market cap covered by net cash. The company benefits from long-term OEM contracts, extensive after market services, and strong R&D, positioning it well for future growth. Despite market fears over ICE exposure and state ownership, risks are overstated due to hybrid demand and shareholder-friendly actions like buybacks and dividends.
Here is how China Yuchai (CYD) and Xos, Inc. (XOS) have performed compared to their sector so far this year.
Here is how China Yuchai (CYD) and Xos, Inc. (XOS) have performed compared to their sector so far this year.
China Yuchai International Limited is facing liquidity risks, intense competition, and industry shifts despite strong revenue and profit growth in 2024. CYD's cash flow generation is weak, with a high P/OCF ratio and shrinking forward operating cash flow, raising concerns about financial stability. Rising costs and shrinking margins are squeezing profits, making CYD's current valuation appear unsustainable and overpriced.
China Yuchai International Limited (NYSE:CYD ) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Kevin Theiss - Head, Investor Relations Weng Ming Hoh - President Choon Sen Loo - Chief Financial Officer Conference Call Participants Yiming Liu - Haitong Securities Pengyu Bai - Pinpoint Asset Management Andy Li - Daiwa Operator Good day, and thank you for standing by. Welcome to China Yuchai International Limited Second Half and Full Year 2024 Full Financial Results Conference Call and Webcast.
CYD is an intriguing stock in a number of ways and the charts suggest now is a good time to get in on CYD. There are a number of potential flaws to be found in CYD with the biggest arguably being CYD's roots in China. An argument can be made that CYD is undervalued, although some may counter that it deserves to trade that way due to the future of ICE vehicles.
China Yuchai International is investing heavily in R&D, launching innovations like the 350hp IE-Power Hybrid system, and collaborating with the government of Nanning Municipality. CYD's exposure to the rapidly growing ESG investing market in the Asia Pacific, expected to grow at 21.5% CAGR, enhances its investment appeal. Despite strong financials, including positive free cash flow and EBITDA, the Company is trading significantly undervalued, presenting a compelling investment opportunity.
Here is how China Yuchai (CYD) and General Motors (GM) have performed compared to their sector so far this year.
If you are looking for stocks that are well positioned to maintain their recent uptrend, China Yuchai (CYD) could be a great choice. It is one of the several stocks that passed through our "Recent Price Strength" screen.
Here is how China Yuchai (CYD) and Hyliion Holdings Corp. (HYLN) have performed compared to their sector so far this year.
China Yuchai (CYD) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.
If you are looking for stocks that are well positioned to maintain their recent uptrend, China Yuchai (CYD) could be a great choice. It is one of the several stocks that passed through our "Recent Price Strength" screen.