China Yuchai International (CYD) H1 2024 earnings summary

Executive summary

• Revenue increased 12.4% year-over-year to RMB 10.3 billion in H1 2024, driven by higher engine sales across truck, bus, and industrial segments.

• Net profit attributable to equity holders rose 34.7% to RMB 240.3 million, with EPS up 34.6% to RMB 5.88.

• Operating profit increased 12.7% to RMB 436.9 million, supported by improved gross margin and cost reduction efforts.

• Achieved strong growth in new energy product sales and continued innovation in hydrogen and hybrid engines.

• Financial strength supports ongoing growth in engine and new energy products.

Financial highlights

• Gross profit rose 16.8% to RMB 1.7 billion, with gross margin improving to 16.8% from 16.2% year-over-year.

• SG&A expenses rose to 10.4% of revenue, up from 9% in H1 2023, mainly due to higher warranty and personnel costs.

• Finance costs declined by 23.7% to RMB 40.9 million.

• Other operating income rose 27.8% to RMB 174.1 million, mainly from government grants and VAT rebates.

• Cash and bank balances stood at RMB 6.3 billion as of June 30, 2024.

Outlook and guidance

• Ongoing focus on developing next-generation emission standard engines and new energy products, including alternative fuels.

• Continued investment in power generation for data centers, wind turbine components, and new energy sectors.

• Management remains confident in building shareholder value, leveraging financial strength for growth and new energy expansion.

• Ongoing investments in R&D for both on-road and off-road engines, as well as new energy products.