Weichai Power (2338) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB112,490 million, up 6.0% year-over-year, with net profit attributable to shareholders at RMB5,903 million, up 51.4% year-over-year, and basic EPS at RMB0.68.

• Gross margin improved to 21.7%, a 3.0 percentage point rebound year-over-year, and net profit margin rose to 6.6% from 4.5% in H1 2023.

• All major business segments—engines, commercial vehicles, agricultural equipment, and intelligent logistics—achieved revenue growth, with agricultural equipment leading at 25.5% year-over-year.

• The company maintained a net cash position and declared an interim dividend of RMB3.72 per 10 shares.

Financial highlights

• EBIT for H1 2024 was RMB10,792 million, up 52.5% year-over-year, with EBIT margin at 9.6%.

• Net cash inflow from operating activities was RMB12,802 million; net cash position was RMB27,104 million.

• Gearing ratio decreased to 22.4% from 23.8% at year-end 2023.

• Extraordinary profit and loss for the period was RMB424 million.

• Principal operations revenue was RMB111,665 million (+6.9% YoY).

Outlook and guidance

• The company expects stable global economic growth in H2 2024, with China’s economy supported by favorable policies and commercial vehicle industry growth, especially in new energy, intelligentization, and electrification.

• Plans to increase R&D investment, enhance product quality, and accelerate digital transformation.

• Focus on expanding market share in core businesses and driving high-end technology competition.