Weichai Power Co., Ltd.

SEHK:2338 Stock Report

Market Cap: HK$119.5b

Weichai Power Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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$11.16) is trading below our estimate of fair value (HK$37.15)

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


Key Valuation Metric

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

Key metric: As 2338 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2338. This is calculated by dividing 2338's market cap by their current earnings.
What is 2338's PE Ratio?
PE Ratio8.2x
EarningsCN¥10.91b
Market CapCN¥111.49b

Price to Earnings Ratio vs Peers

How does 2338's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.3x
3808 Sinotruk (Hong Kong)
8.9x12.2%HK$62.3b
3898 Zhuzhou CRRC Times Electric
10.4x13.3%HK$59.4b
317 CSSC Offshore & Marine Engineering (Group)
64.6xn/aHK$27.7b
631 Sany Heavy Equipment International Holdings
9.3x23.6%HK$15.8b
2338 Weichai Power
8.2x11.7%HK$119.5b

Price-To-Earnings vs Peers: 2338 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (23.3x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2060 Pujiang International Group
1xn/aUS$19.99m
No more companies available in this PE range
2338 8.2xIndustry Avg. 7.9xNo. of Companies6PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2338 is expensive based on its Price-To-Earnings Ratio (8.2x) compared to the Hong Kong Machinery industry average (7.9x).


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 Ratio8.2x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: 2338 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2338 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$11.16
HK$16.41
+47.1%
19.6%HK$21.38HK$10.84n/a15
Nov ’25HK$11.94
HK$17.46
+46.2%
17.6%HK$22.00HK$12.31n/a15
Oct ’25HK$14.36
HK$18.57
+29.3%
16.7%HK$25.00HK$13.06n/a15
Sep ’25HK$11.94
HK$18.48
+54.8%
15.1%HK$23.01HK$12.96n/a15
Aug ’25HK$12.36
HK$18.97
+53.5%
13.3%HK$23.02HK$14.00n/a14
Jul ’25HK$14.94
HK$19.28
+29.1%
11.5%HK$22.91HK$15.01n/a15
Jun ’25HK$13.98
HK$19.14
+36.9%
12.0%HK$22.95HK$15.06n/a14
May ’25HK$16.10
HK$19.03
+18.2%
12.2%HK$22.99HK$15.08n/a13
Apr ’25HK$14.92
HK$18.53
+24.2%
12.8%HK$22.20HK$15.13n/a14
Mar ’25HK$14.94
HK$16.91
+13.2%
11.9%HK$22.00HK$13.11n/a13
Feb ’25HK$13.96
HK$16.69
+19.5%
9.0%HK$19.00HK$13.13n/a13
Jan ’25HK$13.04
HK$15.95
+22.3%
12.3%HK$19.37HK$12.04n/a13
Dec ’24HK$13.46
HK$15.75
+17.0%
13.7%HK$19.44HK$12.27HK$10.7212
Nov ’24HK$12.02
HK$14.39
+19.7%
18.2%HK$18.29HK$9.11HK$11.9412
Oct ’24HK$10.66
HK$13.76
+29.0%
19.5%HK$18.18HK$9.14HK$14.3611
Sep ’24HK$10.18
HK$13.89
+36.5%
19.1%HK$18.31HK$9.21HK$11.9412
Aug ’24HK$11.14
HK$13.78
+23.7%
17.2%HK$18.22HK$9.70HK$12.3612
Jul ’24HK$11.48
HK$13.53
+17.9%
14.6%HK$17.49HK$9.69HK$14.9412
Jun ’24HK$10.76
HK$13.83
+28.6%
14.5%HK$17.90HK$9.92HK$13.9812
May ’24HK$11.56
HK$13.04
+12.8%
16.2%HK$17.39HK$9.63HK$16.1012
Apr ’24HK$12.60
HK$12.25
-2.8%
19.0%HK$17.50HK$8.37HK$14.9212
Mar ’24HK$11.96
HK$12.70
+6.2%
35.8%HK$26.27HK$8.30HK$14.9413
Feb ’24HK$12.14
HK$14.28
+17.6%
45.9%HK$31.24HK$8.31HK$13.9614
Jan ’24HK$10.48
HK$13.19
+25.8%
48.6%HK$29.99HK$7.77HK$13.0414
Dec ’23HK$10.14
HK$12.42
+22.5%
52.2%HK$28.90HK$7.60HK$13.4614

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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