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2338

Weichai Power SEHK:2338 Stock Report

Last Price

HK$12.28

Market Cap

HK$123.7b

7D

-3.5%

1Y

-28.4%

Updated

25 Jun, 2022

Data

Company Financials +
2338 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

2338 Stock Overview

Weichai Power Co., Ltd. manufactures and sells diesel engines, automobiles, and other automobile components in China and internationally.

Weichai Power Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Weichai Power
Historical stock prices
Current Share PriceHK$12.28
52 Week HighHK$20.75
52 Week LowHK$9.74
Beta0.95
1 Month Change9.06%
3 Month Change0.66%
1 Year Change-28.44%
3 Year Change-6.97%
5 Year Change79.53%
Change since IPO1,302.39%

Recent News & Updates

May 24
What Is Weichai Power Co., Ltd.'s (HKG:2338) Share Price Doing?

What Is Weichai Power Co., Ltd.'s (HKG:2338) Share Price Doing?

Weichai Power Co., Ltd. ( HKG:2338 ) saw a decent share price growth in the teens level on the SEHK over the last few...

Shareholder Returns

2338HK MachineryHK Market
7D-3.5%1.6%2.1%
1Y-28.4%-26.8%-23.3%

Return vs Industry: 2338 underperformed the Hong Kong Machinery industry which returned -26.8% over the past year.

Return vs Market: 2338 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 2338's price volatile compared to industry and market?
2338 volatility
2338 Average Weekly Movement5.7%
Machinery Industry Average Movement6.8%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 2338 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2338's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200242,953Xuguang Tanhttps://www.weichaipower.com

Weichai Power Co., Ltd. manufactures and sells diesel engines, automobiles, and other automobile components in China and internationally. It operates through Engines, Automobiles and Automobile Components, and Intelligent Logistics segments. The company provides design, development, production, sale, repair, and import and export of engines and auxiliary products, automobile axles and components, and gearboxes and components; hydraulic pumps and motors; hydraulic valves; gears and gear transmission devices; ancillary casting and casting products of hydraulic components; internal combustion engines, energy powertrain systems and ancillary products; technical consultation and technical services; leasing of self-owned houses; steel; business management services; forklift trucks; and warehousing technology and supply chain solution services.

Weichai Power Fundamentals Summary

How do Weichai Power's earnings and revenue compare to its market cap?
2338 fundamental statistics
Market CapCN¥105.41b
Earnings (TTM)CN¥6.96b
Revenue (TTM)CN¥179.24b

13.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2338 income statement (TTM)
RevenueCN¥179.24b
Cost of RevenueCN¥145.33b
Gross ProfitCN¥33.91b
Other ExpensesCN¥26.96b
EarningsCN¥6.96b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.80
Gross Margin18.92%
Net Profit Margin3.88%
Debt/Equity Ratio27.6%

How did 2338 perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2338 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2338?

Other financial metrics that can be useful for relative valuation.

2338 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA6.4x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does 2338's PE Ratio compare to its peers?

2338 PE Ratio vs Peers
The above table shows the PE ratio for 2338 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.4x

Price-To-Earnings vs Peers: 2338 is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (28.4x).


Price to Earnings Ratio vs Industry

How does 2338's PE Ratio compare vs other companies in the Hong Kong Machinery Industry?

Price-To-Earnings vs Industry: 2338 is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the Hong Kong Machinery industry average (10.7x)


Price to Earnings Ratio vs Fair Ratio

What is 2338's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2338 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: 2338 is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).


Share Price vs Fair Value

What is the Fair Price of 2338 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2338 (HK$12.28) is trading below our estimate of fair value (HK$43.13)

Significantly Below Fair Value: 2338 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 2338 is poor value based on its PEG Ratio (1.1x)


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Future Growth

How is Weichai Power forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2338's forecast earnings growth (12% per year) is above the savings rate (1.5%).

Earnings vs Market: 2338's earnings (12% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 2338's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2338's revenue (7.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 2338's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2338's Return on Equity is forecast to be low in 3 years time (12.5%).


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Past Performance

How has Weichai Power performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2338 has high quality earnings.

Growing Profit Margin: 2338's current net profit margins (3.9%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: 2338's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: 2338's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2338 had negative earnings growth (-33.8%) over the past year, making it difficult to compare to the Machinery industry average (35.6%).


Return on Equity

High ROE: 2338's Return on Equity (8%) is considered low.


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Financial Health

How is Weichai Power's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2338's short term assets (CN¥161.8B) exceed its short term liabilities (CN¥115.5B).

Long Term Liabilities: 2338's short term assets (CN¥161.8B) exceed its long term liabilities (CN¥56.6B).


Debt to Equity History and Analysis

Debt Level: 2338 has more cash than its total debt.

Reducing Debt: 2338's debt to equity ratio has reduced from 83.8% to 27.6% over the past 5 years.

Debt Coverage: 2338's debt is well covered by operating cash flow (42.7%).

Interest Coverage: 2338 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Weichai Power current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2338's dividend (3.54%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 2338's dividend (3.54%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: 2338's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2338's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.7%), 2338's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53.9%), 2338's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Xuguang Tan (60 yo)

no data

Tenure

CN¥53,031

Compensation

Mr. Xuguang Tan serves as the President of Ferretti, S.p.A. Mr. Tan serves as the Chairman of Management Board at Weichai Group. Mr. Tan serves as the Chairman and Chief Executive Officer of Weichai Power...


Leadership Team

Experienced Management: 2338's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2338's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Weichai Power Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Weichai Power Co., Ltd.
  • Ticker: 2338
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Implied Market Cap: HK$123.691b
  • Shares outstanding: 8.70b
  • Website: https://www.weichaipower.com

Number of Employees


Location

  • Weichai Power Co., Ltd.
  • 197, Section A, Fu Shou East Street
  • Section A
  • Weifang
  • Shandong Province
  • 261061
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.