CYD Stock Fair Value – China Yuchai International Reports Record Q2 Earnings for FY2023
August 12, 2023
🌥️Earnings Overview
For the quarter ending June 30, 2023, CHINA YUCHAI INTERNATIONAL ($NYSE:CYD) reported total revenue of CNY 9171.0 million, a 7.0% increase from the prior year’s period. Net income for the quarter was CNY 178.4 million, representing a 90.3% increase over the same period in the prior year.
Price History
China Yuchai International had a record second quarter for the fiscal year of 2023, as reported on Thursday. The stock opened at a price of $11.7 and closed at $12.0, an increase of 3.5% from the last closing price of 11.6. China Yuchai International attributed its increased earnings to strong demand in the global construction equipment market as well as robust sales in its internal combustion engines segment. The company also saw significant growth in its sales of heavy-duty diesel engines, which rose by 30% year-on-year.
The company attributed its strong performance to a favorable industry environment, aggressive cost control measures, and increased efficiency in production and operations. With this strong showing in the second quarter of FY2023, investors have high hopes for the rest of the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CYD. More…
| Total Revenues | Net Income | Net Margin |
| 16.63k | 303.23 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CYD. More…
| Operations | Investing | Financing |
| -119.42 | -133.05 | -140.37 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CYD. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.14k | 12.3k | 225.9 |
Key Ratios Snapshot
Some of the financial key ratios for CYD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.3% | -19.4% | 3.9% |
| FCF Margin | ROE | ROA |
| -4.3% | 4.4% | 1.7% |
Analysis – CYD Stock Fair Value
At GoodWhale, we have conducted an analysis of CHINA YUCHAI INTERNATIONAL’s fundamentals and have come to the conclusion that the fair value of their stock is around $3.5. This number was calculated using our proprietary Valuation Line. Currently, CHINA YUCHAI INTERNATIONAL shares are trading at $12.0, which is an overvaluation of 241.9%. We believe this to be an opportunity for investors as there is the potential for significant returns if the share price returns to its fair value. More…
Peers
These companies have all been vying for a larger market share in the industry, and are constantly pushing one another to innovate and create new products that will give them a competitive edge. As a result, consumer choice is being increased and prices are being driven down, making it an exciting and competitive environment to be in.
– Yantai Eddie Precision Machinery Co Ltd ($SHSE:603638)
Yantai Eddie Precision Machinery Co Ltd is a Chinese-based company that specializes in the production of precision machinery. The company has a market cap of 16.16B as of 2023, making it one of the largest companies in its sector. The Return on Equity (ROE) of 6.48% indicates that the company is performing well, generating a return on its shareholders’ investments. Yantai Eddie Precision Machinery Co Ltd is committed to providing innovative products and services to its customers, helping them achieve their goals.
– Leeport (Holdings) Ltd ($SEHK:00387)
Leeport (Holdings) Ltd is a Hong Kong-based investment holding company which engages in the production and trading of electronic products, electronic components, and power supplies. As of 2023, it has a market capitalization of 181.76M. The company’s return on equity (ROE) of -0.73% indicates that it has underperformed its peers in terms of shareholder returns. This could be attributed to a sluggish market, lack of diversification, or high operating costs. Nevertheless, Leeport (Holdings) Ltd is well-positioned to capitalize on opportunities in the electronics sector and beyond.
– Best Linking Group Holdings Ltd ($SEHK:08617)
Link Group Holdings Ltd is a global company that provides a range of technology-driven solutions for the financial services, asset management, insurance and banking industries. Its market cap of 508M as of 2023 reflects its strong financial performance and stable business operations. The company’s Return on Equity (ROE) of 21.97% is above the industry average and demonstrates its ability to generate profits from its operations. Link Group Holdings Ltd has a strong track record of delivering value to shareholders and is well positioned to continue to be a leader in the financial services industry.
Summary
China Yuchai International reported strong financial results for the second quarter of 2023, with total revenue rising 7.0% year-on-year and net income increasing by 90.3%. This positive performance was reflected in the stock price, as it surged on the same day of the earnings announcement. In light of these results, investors may be more inclined to invest in China Yuchai International, given its strong performance and potential for further growth.
Furthermore, the company is well-positioned to benefit from a recovery in the Chinese economy, which is likely to drive higher sales and profits. Overall, investors should consider adding China Yuchai International to their portfolio for its promising outlook.
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