Weichai Power (2338) H2 2024 earnings summary

Executive summary

• Revenue reached RMB215,691 million, up 0.8% year-over-year, with net profit attributable to shareholders rising 26.5% to RMB11,403 million and basic EPS increasing 25.4% to RMB1.31.

• Despite a challenging global and domestic environment, profit growth outpaced revenue, driven by product innovation, cost control, and market expansion.

• The company maintained leadership in powertrains, commercial vehicles, agricultural equipment, and intelligent logistics, with notable export growth and technological breakthroughs.

Financial highlights

• Gross profit was RMB48,386 million, with gross margin improving by 2.1 percentage points to 22.4% year-over-year.

• EBIT rose 28.3% to RMB21,176 million, with EBIT margin up to 9.8% from 7.7% last year.

• Net profit margin increased to 6.6% from 5.2% year-over-year.

• Operating cash flow was RMB26,094 million, down RMB1,377 million year-over-year; cash and cash equivalents at year-end were RMB54,594 million.

• Final dividend proposed at RMB0.347 per share, up from RMB0.293 last year.

Outlook and guidance

• 2025 revenue is projected at RMB226.5–237.3 billion, targeting 5–10% growth year-over-year.

• Focus areas include new energy business, large-diameter engine technology, overseas market expansion, aftermarket services, and digital transformation.

• The company aims to maintain high R&D intensity, drive product mix optimization, and enhance profitability.