China Yuchai International (CYD) H2 2024 earnings summary

Executive summary

• Revenue rose 6.6% year-over-year to RMB 19.1 billion ($2.7 billion) in 2024, with engine sales up 13.7% to 356,586 units.

• Gross profit increased 10.8% year-over-year to RMB 2.8 billion ($392.1 million), with gross margin improving to 14.7%.

• Net profit attributable to shareholders was RMB 323.1 million ($44.9 million), up from RMB 285.5 million in 2023, and EPS rose 17.5% to RMB 8.21.

• Engine sales outperformed the Chinese truck and bus markets, with significant growth in marine, genset, and industrial engines.

• Strategic joint ventures, notably MTU Yuchai, turned profitable and contributed significantly to earnings.

Financial highlights

• Gross margin improved to 14.7% in 2024 from 14.1% in 2023.

• Operating profit was RMB 597 million ($83 million), slightly down from RMB 609.4 million in 2023.

• Basic and diluted EPS were RMB 8.21 ($1.14), up from RMB 6.99 in 2023.

• Cash and bank balances at year-end were RMB 6.4 billion ($895 million), up from RMB 6.0 billion.

• Finance costs decreased by 22.2% to RMB 78 million ($10.8 million).

Outlook and guidance

• Order book for data center generator engines is full for 2025, with at least 30% growth expected.

• Capacity expansion planned, with 35-40% increase in 2025 and further ramp-up by 2027.

• R&D spending expected to remain stable or slightly increase in 2025.

• SG&A expenses expected to remain at 2024 levels, with slight increases as overseas markets expand.