OTCPK:WEIC.F

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Weichai Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WEIC.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WEIC.F

-0.03%

US Machinery

2.3%

US Market


1 Year Return

12.5%

WEIC.F

-5.8%

US Machinery

6.7%

US Market

Return vs Industry: WEIC.F exceeded the US Machinery industry which returned -5.2% over the past year.

Return vs Market: WEIC.F exceeded the US Market which returned 7.4% over the past year.


Shareholder returns

WEIC.FIndustryMarket
7 Day0%-0.03%2.3%
30 Day4.9%-9.7%-0.7%
90 Dayn/a9.3%17.1%
1 Year12.5%12.5%-3.9%-5.8%9.0%6.7%
3 Year12.8%12.8%9.2%2.0%36.7%27.8%
5 Year-37.0%-37.0%46.9%29.2%65.2%46.9%

Price Volatility Vs. Market

How volatile is Weichai Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Weichai Power undervalued compared to its fair value and its price relative to the market?

14.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEIC.F ($1.78) is trading below our estimate of fair value ($2.09)

Significantly Below Fair Value: WEIC.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WEIC.F is good value based on its PE Ratio (13.6x) compared to the Machinery industry average (19.4x).

PE vs Market: WEIC.F is good value based on its PE Ratio (13.6x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: WEIC.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: WEIC.F is overvalued based on its PB Ratio (2.5x) compared to the US Machinery industry average (2x).


Next Steps

Future Growth

How is Weichai Power forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEIC.F's forecast earnings growth (9.6% per year) is above the savings rate (2.2%).

Earnings vs Market: WEIC.F's earnings (9.6% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: WEIC.F's revenue (6.1% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: WEIC.F's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEIC.F's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Weichai Power performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEIC.F has high quality earnings.

Growing Profit Margin: WEIC.F's current net profit margins (5.1%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: WEIC.F's earnings have grown significantly by 34.3% per year over the past 5 years.

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

Earnings vs Industry: WEIC.F had negative earnings growth (-8.1%) over the past year, making it difficult to compare to the Machinery industry average (-5.4%).


Return on Equity

High ROE: WEIC.F's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is Weichai Power's financial position?


Financial Position Analysis

Short Term Liabilities: WEIC.F's short term assets (CN¥123.3B) exceed its short term liabilities (CN¥103.0B).

Long Term Liabilities: WEIC.F's short term assets (CN¥123.3B) exceed its long term liabilities (CN¥59.1B).


Debt to Equity History and Analysis

Debt Level: WEIC.F's debt to equity ratio (48%) is considered high.

Reducing Debt: WEIC.F's debt to equity ratio has increased from 40.8% to 48% over the past 5 years.

Debt Coverage: WEIC.F's debt is well covered by operating cash flow (44.7%).

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


Balance Sheet


Next Steps

Dividend

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

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEIC.F's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: WEIC.F's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (4.49%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), WEIC.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEIC.F's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

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

6.1yrs

Average board tenure


CEO

Xuguang Tan (59yo)

no data

Tenure

CN¥48,622

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  ...


Board Members

NamePositionTenureCompensationOwnership
Xuguang Tan
Chairman & CEOno dataCN¥48.62k0.74% CN¥127.5m
Quan Zhang
Executive President & Executive Director17.58yrsCN¥2.31m0.17% CN¥29.6m
Xinyu Xu
Executive President & Executive Director17.58yrsCN¥2.31m0.17% CN¥29.6m
Shaojun Sun
Executive President & Executive Director17.58yrsCN¥2.31m0.17% CN¥29.6m
Hongming Yuan
Executive President & Executive Director3.08yrsno data0.013% CN¥2.2m
Jianbo Yan
Executive President & Executive Director3.08yrsno data0.014% CN¥2.4m
Zhong Zhang
Independent Non-Executive Director6.08yrsCN¥155.00kno data
Wenwu Lu
Chairman of the Supervisory Committeeno dataCN¥840.68k0.0076% CN¥1.3m
Gongyong Wang
Independent Non-Executive Director6.08yrsCN¥155.00kno data
Michael Macht
Non-Executive Director2.08yrsCN¥129.20kno data

6.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: WEIC.F's board of directors are considered experienced (6.1 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weichai Power Co., Ltd.
  • Ticker: WEIC.F
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$133.211b
  • Listing Market Cap: HK$17.188b
  • Shares outstanding: 7.93b
  • Website: https://www.weichaipower.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WEIC.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMar 2004
2338SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 2004
WI4DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMar 2004
2338SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 2004
338SZSE (Shenzhen Stock Exchange)Domestic SharesCNCNYMay 2007
338XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)Domestic SharesCNCNYMay 2007
WEIC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

Weichai Power Co., Ltd. manufactures and sells diesel engines, automobiles, and other major 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, gear boxes and components, and other automobile components; hydraulic pumps and motors; hydraulic valves; gears and gear transmission devices; ancillary casting and casting products of hydraulic components; internal combustion engines, new energy powertrain systems and ancillary products; technical consultation and technical services; leasing of self-owned houses; steel; business management services; and forklift trucks, and warehousing technology and supply chain solution services. It offers its products under various brands, including Weichai Power Engine, Fast Gear, Hande Axle, Shacman Heavy Truck, and Linder Hydraulics. Weichai Power Co., Ltd. was founded in 2002 and is headquartered in Weifang, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 00:43
End of Day Share Price2020/06/23 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.