Weichai Power Co., Ltd.

SEHK:2338 Stock Report

Market Cap: HK$116.5b

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$11.14) is trading below our estimate of fair value (HK$37.08)

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 Ratio8.3x
EarningsCN¥10.91b
Market CapCN¥109.43b

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 Average24.7x
3808 Sinotruk (Hong Kong)
9.4x11.4%HK$60.7b
3898 Zhuzhou CRRC Times Electric
11.4x13.8%HK$61.0b
317 CSSC Offshore & Marine Engineering (Group)
68.9xn/aHK$28.4b
631 Sany Heavy Equipment International Holdings
9.2x23.6%HK$15.2b
2338 Weichai Power
8.3x11.6%HK$116.5b

Price-To-Earnings vs Peers: 2338 is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (24.7x).

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 8.3xIndustry Avg. 8.1xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2338 is expensive based on its Price-To-Earnings Ratio (8.3x) compared to the Hong Kong Machinery industry average (8.1x).

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 Ratio8.3x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: 2338 is good value based on its Price-To-Earnings Ratio (8.3x) 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$11.14
HK$16.29
+46.2%
19.3%HK$21.36HK$10.83n/a16
Dec ’25HK$10.72
HK$16.69
+55.7%
20.6%HK$21.80HK$10.90n/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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 10:51
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Weichai Power Co., Ltd. is covered by 56 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Victoria LiBarclays
Tingting LiBNP Paribas Securities (Asia)
Hao GaoBOCI Research Ltd.