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Weichai Power

OTCPK:WEIC.F
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEIC.F
OTCPK
HK$108B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Weichai Power Co., Ltd. designs, develops, produces, sells, and repairs diesel engines and related parts, automobiles, and other automobile components in the People’s Republic of China and internationally. The last earnings update was 79 days ago. More info.


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WEIC.F Share Price and Events
7 Day Returns
8.6%
OTCPK:WEIC.F
1%
US Machinery
1.1%
US Market
1 Year Returns
26.8%
OTCPK:WEIC.F
6.8%
US Machinery
4.7%
US Market
WEIC.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Weichai Power (WEIC.F) 8.6% 8.6% - 26.8% 51% -61.2%
US Machinery 1% 4.5% -1.4% 6.8% 46.9% 28.5%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • WEIC.F outperformed the Machinery industry which returned 6.8% over the past year.
  • WEIC.F outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
WEIC.F
Industry
5yr Volatility vs Market

Value

 Is Weichai Power undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Weichai Power to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Weichai Power.

OTCPK:WEIC.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:WEIC.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 25%) (36.33%))
1.255
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.255 * 5.96%)
10.21%

Discounted Cash Flow Calculation for OTCPK:WEIC.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Weichai Power is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:WEIC.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 10.21%)
2020 16,482.00 Analyst x1 14,954.81
2021 14,151.76 Analyst x3 11,650.71
2022 14,054.37 Est @ -0.69% 10,498.43
2023 14,101.77 Est @ 0.34% 9,557.79
2024 14,250.55 Est @ 1.06% 8,763.68
2025 14,472.51 Est @ 1.56% 8,075.50
2026 14,748.83 Est @ 1.91% 7,467.14
2027 15,066.74 Est @ 2.16% 6,921.29
2028 15,417.47 Est @ 2.33% 6,426.16
2029 15,794.97 Est @ 2.45% 5,973.49
Present value of next 10 years cash flows CN¥90,288.99
OTCPK:WEIC.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥15,794.97 × (1 + 2.73%) ÷ (10.21% – 2.73%)
CN¥216,868.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥216,868.18 ÷ (1 + 10.21%)10
CN¥82,017.26
OTCPK:WEIC.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥90,288.99 + CN¥82,017.26
CN¥172,306.26
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥172,306.26 / 7,933.87
CN¥172.65
OTCPK:WEIC.F Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2338)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥21.72 x 1.137
HK$24.69
Non-primary Listing Adjustment Factor 1 share in OTCPK:WEIC.F represents 0.12579x of SEHK:2338
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.12579x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 24.69 x 0.12579
$3.11
Value per share (USD) From above. $3.11
Current discount Discount to share price of $1.59
= -1 x ($1.59 - $3.11) / $3.11
49%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Weichai Power is available for.
Intrinsic value
49%
Share price is $1.59 vs Future cash flow value of $3.11
Current Discount Checks
For Weichai Power to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Weichai Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Weichai Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Weichai Power's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Weichai Power's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:WEIC.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥1.17
SEHK:2338 Share Price ** SEHK (2019-07-10) in HKD HK$12.6
SEHK:2338 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥11.08
United States of America Machinery Industry PE Ratio Median Figure of 98 Publicly-Listed Machinery Companies 21.27x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Weichai Power.

OTCPK:WEIC.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2338 Share Price ÷ EPS (both in CNY)

= 11.08 ÷ 1.17

9.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weichai Power is good value based on earnings compared to the US Machinery industry average.
  • Weichai Power is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Weichai Power's expected growth come at a high price?
Raw Data
OTCPK:WEIC.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
3.9%per year
United States of America Machinery Industry PEG Ratio Median Figure of 79 Publicly-Listed Machinery Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

OTCPK:WEIC.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.46x ÷ 3.9%

2.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weichai Power is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Weichai Power's assets?
Raw Data
OTCPK:WEIC.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥5.31
SEHK:2338 Share Price * SEHK (2019-07-10) in HKD HK$12.6
SEHK:2338 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥11.08
United States of America Machinery Industry PB Ratio Median Figure of 126 Publicly-Listed Machinery Companies 2.3x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
OTCPK:WEIC.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2338 Share Price ÷ Book Value per Share (both in CNY)

= 11.08 ÷ 5.31

2.09x

* Primary Listing of Weichai Power.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weichai Power is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Weichai Power's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Weichai Power has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Weichai Power expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Weichai Power expected to grow at an attractive rate?
  • Weichai Power's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Weichai Power's earnings growth is positive but not above the United States of America market average.
  • Weichai Power's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:WEIC.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:WEIC.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 3.9%
OTCPK:WEIC.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 2.3%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:WEIC.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:WEIC.F Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 173,785 21,613 9,823 12
2020-12-31 168,492 19,132 9,150 16
2019-12-31 168,099 22,059 9,172 1
OTCPK:WEIC.F Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 165,255 21,816 9,329
2018-12-31 159,256 22,262 8,658
2018-09-30 158,201 16,938 8,206
2018-06-30 161,520 20,162 8,551
2018-03-31 155,793 16,191 7,548
2017-12-31 151,569 16,443 6,808
2017-09-30 141,458 12,753 5,504
2017-06-30 122,935 10,951 4,020
2017-03-31 109,170 7,565 3,164
2016-12-31 93,184 8,250 2,441
2016-09-30 82,872 6,078 1,911
2016-06-30 80,274 7,376 1,514

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Weichai Power's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Weichai Power's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:WEIC.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Weichai Power Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:WEIC.F Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.15 1.52 0.86 7.00
2020-12-31 1.09 1.42 0.62 9.00
2019-12-31 1.14 1.33 0.94 1.00
OTCPK:WEIC.F Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 1.17
2018-12-31 1.08
2018-09-30 0.99
2018-06-30 1.07
2018-03-31 0.94
2017-12-31 0.85
2017-09-30 0.71
2017-06-30 0.51
2017-03-31 0.41
2016-12-31 0.31
2016-09-30 0.24
2016-06-30 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Weichai Power is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Weichai Power's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Weichai Power has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Weichai Power performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Weichai Power's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Weichai Power has delivered over 20% year on year earnings growth in the past 5 years.
  • Weichai Power's 1-year earnings growth exceeds its 5-year average (23.6% vs 22.6%)
  • Weichai Power's earnings growth has not exceeded the US Machinery industry average in the past year (23.6% vs 33.5%).
Earnings and Revenue History
Weichai Power's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Weichai Power Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:WEIC.F Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 165,255.41 9,329.24 16,930.14 4,486.86
2018-12-31 159,255.83 8,657.53 17,007.43 4,320.20
2018-09-30 158,201.18 8,206.48 16,214.21 5,053.66
2018-06-30 161,520.03 8,550.89 16,519.92 4,771.91
2018-03-31 155,793.15 7,548.04 16,534.61 4,552.76
2017-12-31 151,569.39 6,808.34 16,482.76 3,732.38
2017-09-30 141,457.86 5,503.72 17,070.33 2,183.26
2017-06-30 122,935.40 4,020.06 16,397.59 1,531.99
2017-03-31 109,170.30 3,164.45 16,602.56
2016-12-31 93,183.52 2,441.19 15,346.22
2016-09-30 82,872.36 1,910.67 14,274.54
2016-06-30 80,273.87 1,514.30 14,315.38
2016-03-31 75,630.34 1,268.76 13,606.56
2015-12-31 74,167.74 1,412.27 13,386.24
2015-09-30 78,062.49 1,599.22 14,526.88
2015-06-30 81,980.99 2,206.74 14,242.19
2015-03-31 80,538.44 4,547.66 12,674.41
2014-12-31 79,637.16 5,002.43 11,555.49
2014-09-30 71,125.43 5,311.35 8,977.71
2014-06-30 61,501.53 5,250.66 7,240.09
2014-03-31 61,793.03 3,812.38 7,309.27
2013-12-31 58,311.71 3,570.79 6,863.78
2013-09-30 55,230.21 3,287.10 6,511.97
2013-06-30 52,027.34 3,178.71 6,157.45
2013-03-31 47,785.91 2,779.29 5,797.97
2012-12-31 48,165.39 2,991.00 5,503.30
2012-09-30 49,106.75 3,424.34 5,456.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Weichai Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Weichai Power used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Weichai Power has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Weichai Power's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Weichai Power has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Weichai Power's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Weichai Power's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Weichai Power is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Weichai Power's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Weichai Power's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Weichai Power Company Filings, last reported 3 months ago.

OTCPK:WEIC.F Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 65,503.47 27,620.58 39,339.03
2018-12-31 62,259.33 30,738.73 42,255.40
2018-09-30 59,945.51 31,305.03 33,384.83
2018-06-30 58,588.58 32,977.36 38,182.73
2018-03-31 58,421.69 29,658.11 33,087.77
2017-12-31 56,354.99 31,524.34 36,738.02
2017-09-30 53,900.97 35,989.51 35,048.49
2017-06-30 47,971.00 38,661.74 30,621.97
2017-03-31 46,010.17 38,552.79 26,920.08
2016-12-31 44,273.94 39,291.59 27,936.72
2016-09-30 42,695.59 18,011.53 22,016.72
2016-06-30 41,455.07 22,011.78 26,207.74
2016-03-31 42,021.67 17,215.89 22,423.77
2015-12-31 41,936.99 18,892.16 24,939.51
2015-09-30 41,169.53 19,106.07 23,929.21
2015-06-30 41,534.94 18,845.70 22,202.84
2015-03-31 39,451.53 16,059.15 19,926.78
2014-12-31 41,941.89 18,617.85 24,454.41
2014-09-30 40,381.13 24,951.56 20,695.96
2014-06-30 40,606.67 24,835.86 20,153.76
2014-03-31 35,997.63 14,631.37 16,861.50
2013-12-31 34,327.31 14,237.84 19,630.13
2013-09-30 33,930.71 14,233.47 14,473.50
2013-06-30 33,164.28 13,822.83 15,168.04
2013-03-31 32,158.95 11,824.72 14,909.33
2012-12-31 31,399.24 12,117.83 16,796.97
2012-09-30 30,938.10 4,795.12 13,281.87
  • Weichai Power's level of debt (42.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (41.1% vs 42.2% today).
  • Debt is well covered by operating cash flow (79%, greater than 20% of total debt).
  • Weichai Power earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Weichai Power's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Weichai Power has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.15%
Current annual income from Weichai Power dividends. Estimated to be 4.36% next year.
If you bought $2,000 of Weichai Power shares you are expected to receive $83 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Weichai Power's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Weichai Power's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:WEIC.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 75 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:WEIC.F Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.49 8.00
2020-12-31 0.48 11.00
2019-12-31 0.49 1.00
OTCPK:WEIC.F Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-21 0.460 4.095
2018-10-16 0.430 4.780
2018-07-25 0.400 5.199
2017-10-16 0.400 5.186
2017-06-09 0.250 3.799
2016-10-27 0.100 1.734
2016-10-14 0.100 2.010
2016-06-08 0.100 2.471
2015-07-02 0.063 1.733
2014-07-02 0.063 1.038
2013-10-28 0.050 0.850
2013-09-17 0.050 0.815
2013-08-29 0.050 0.829
2013-08-13 0.115 2.029
2012-04-18 0.021 0.388
2012-03-29 0.021 0.334
2011-07-04 0.090 1.360
2010-03-01 0.050 0.715
2009-04-27 0.014 0.374

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Weichai Power's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Weichai Power's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Weichai Power afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Weichai Power has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Weichai Power's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xuguang Tan
COMPENSATION CN¥57,161
AGE 58
CEO Bio

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 Co. Ltd. He serves as the Chairman and Chief Executive Officer of Weichai Holding Group Co., Ltd. He has been a Member of Supervisory Board at KION GROUP AG since May 9, 2019. He served as the Chief Executive Officer of Weichai Holding Group Co Ltd. Mr. Tan serves as the General Manager of Weichai Factory and a Deputy General Manager of CHDTGL. Mr. Tan has an extensive experience in the production, manufacturing and management of diesel engines, foreign trade, marketing, sales and management as well as corporate development and strategic management. He joined Weichai Power Co. Ltd., in 1977 and has held various positions including the Deputy Director of the import and export department, assistant to General Manager, Deputy General Manager and General Manager of Weichai Factory. He has been Group Chairman of Ferretti S.p.A. since August 2012. Mr. Tan serves as the Chairman of Shaanxi Heavy-Duty Truck Co., Ltd., Baoji Fast Gear Co., Ltd. and Weichai Holding Group Co Ltd. He served as the Chairman of Weichai Heavy Machinery Co., Ltd., Shaanxi Fast Gear Co., Ltd., and Torch Automobile Group Co., Ltd. He serves as a Director of Shaanxi Hande Axle Co., Ltd. He has been Executive Director at Weichai Power Co. Ltd since December 18, 2002. Mr. Tan served as Director of the foreign trade department at Shandong Weichai IMP. & EXP. Corp. He served as a Director of Beiqi Foton Motor Co., Ltd. He serves as a Director at CHDTGL. He was a Member of The Supervisory Board at KION GROUP AG since June 9, 2013 until September 30, 2018. Mr. Tan is a member of the 10th NPC. He received the “Outstanding Entrepreneur of the National Machinery Industry” award in 2002. He is a Senior Economist and holds a Master's degree in Power Engineering from Tianjin University in 2003.

CEO Compensation
  • Xuguang's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Xuguang's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Weichai Power management team in years:

1.8
Average Tenure
54.5
Average Age
  • The average tenure for the Weichai Power management team is less than 2 years, this suggests a new team.
Management Team

Xuguang Tan

TITLE
Chairman & CEO
COMPENSATION
CN¥57K
AGE
58

Sherman Sun

TITLE
Executive President & Executive Director
COMPENSATION
CN¥2M
AGE
53

Hongming Yuan

TITLE
Executive President & Executive Director
AGE
53
TENURE
1.8 yrs

Jianbo Yan

TITLE
Executive President & Executive Director
AGE
56
TENURE
1.8 yrs

Kwan Tong Kwong

TITLE
Company Secretary & CFO
COMPENSATION
CN¥1M
AGE
53
TENURE
6.3 yrs

Haoyan Hu

TITLE
VP & Chief Technology Officer
COMPENSATION
CN¥2M
AGE
63

Quan Zhang

TITLE
Executive President & Executive Director
COMPENSATION
CN¥2M
AGE
55

Xinyu Xu

TITLE
Executive President & Executive Director
COMPENSATION
CN¥2M
AGE
55

Jiyuan Zhang

TITLE
VP & Chief Designer
COMPENSATION
CN¥2M
AGE
54

Liu Yuanqiang

TITLE
VP, Chief Process Officer
COMPENSATION
CN¥2M
AGE
47
Board of Directors Tenure

Average tenure and age of the Weichai Power board of directors in years:

5.1
Average Tenure
54.5
Average Age
  • The tenure for the Weichai Power board of directors is about average.
Board of Directors

Xuguang Tan

TITLE
Chairman & CEO
COMPENSATION
CN¥57K
AGE
58

Sherman Sun

TITLE
Executive President & Executive Director
COMPENSATION
CN¥2M
AGE
53
TENURE
16.6 yrs

Hongming Yuan

TITLE
Executive President & Executive Director
AGE
53
TENURE
2.1 yrs

Jianbo Yan

TITLE
Executive President & Executive Director
AGE
56
TENURE
2.1 yrs

Quan Zhang

TITLE
Executive President & Executive Director
COMPENSATION
CN¥2M
AGE
55
TENURE
16.6 yrs

Xinyu Xu

TITLE
Executive President & Executive Director
COMPENSATION
CN¥2M
AGE
55
TENURE
16.6 yrs

Wenwu Lu

TITLE
Chairman of the Supervisory Committee
COMPENSATION
CN¥841K
AGE
54

Zhong Zhang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥120K
AGE
51
TENURE
5.1 yrs

Gongyong Wang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥120K
AGE
46
TENURE
5.1 yrs

Michael Macht

TITLE
Non-Executive Director
COMPENSATION
CN¥73K
AGE
58
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Jun 19 Sell Lazard Asset Management LLC Company 21. Jun 19 21. Jun 19 -4,343,240 $1.68 $-7,285,086
31. May 19 Sell Lazard Asset Management LLC Company 27. May 19 27. May 19 -3,564,000 $1.43 $-5,085,229
31. May 19 Buy BlackRock, Inc. Company 28. May 19 28. May 19 3,280,000 $1.49 $4,878,134
30. Apr 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 25. Apr 19 25. Apr 19 2,895,747 $1.69 $4,890,094
26. Apr 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 23. Apr 19 23. Apr 19 -1,995,267 $1.75 $-3,494,357
15. Apr 19 Sell J.P. Morgan Asset Management, Inc. Company 10. Apr 19 10. Apr 19 -1,941,400 $1.89 $-3,676,157
11. Apr 19 Buy J.P. Morgan Asset Management, Inc. Company 08. Apr 19 08. Apr 19 1,213,880 $1.89 $2,296,679
09. Apr 19 Sell J.P. Morgan Asset Management, Inc. Company 04. Apr 19 04. Apr 19 -1,034,552 $1.77 $-1,826,532
01. Mar 19 Sell Lazard Asset Management LLC Company 25. Feb 19 25. Feb 19 -8,822,932 $1.41 $-12,477,964
27. Feb 19 Buy J.P. Morgan Asset Management, Inc. Company 22. Feb 19 22. Feb 19 1,644,056 $1.40 $2,307,005
25. Feb 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 20. Feb 19 20. Feb 19 -3,933,008 $1.41 $-5,526,478
08. Feb 19 Buy J.P. Morgan Asset Management, Inc. Company 04. Feb 19 04. Feb 19 1,478,201 $1.41 $2,082,980
05. Feb 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 31. Jan 19 31. Jan 19 -2,839,200 $1.33 $-3,779,606
25. Jan 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 22. Jan 19 22. Jan 19 4,870,228 $1.22 $5,952,135
25. Jan 19 Buy J.P. Morgan Asset Management, Inc. Company 22. Jan 19 22. Jan 19 3,731,571 $1.22 $4,560,528
24. Jan 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 21. Jan 19 21. Jan 19 -9,356,999 $1.21 $-11,357,282
17. Jan 19 Sell J.P. Morgan Asset Management, Inc. Company 14. Jan 19 14. Jan 19 -978,297 $1.17 $-1,146,264
31. Dec 18 Buy J.P. Morgan Asset Management, Inc. Company 27. Dec 18 27. Dec 18 4,710,349 $1.12 $5,270,984
24. Dec 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 20. Dec 18 20. Dec 18 -4,239,725 $1.10 $-4,670,562
01. Dec 18 Buy BlackRock, Inc. Company 28. Nov 18 28. Nov 18 486,825 $1.07 $521,236
14. Nov 18 Sell BlackRock, Inc. Company 09. Nov 18 09. Nov 18 -257,000 $1.06 $-271,252
13. Nov 18 Buy BlackRock, Inc. Company 08. Nov 18 08. Nov 18 1,510,000 $1.07 $1,609,568
06. Sep 18 Buy J.P. Morgan Asset Management, Inc. Company 03. Sep 18 03. Sep 18 4,986,477 $1.10 $5,470,888
11. Sep 18 Sell J.P. Morgan Asset Management, Inc. Company 06. Sep 18 06. Sep 18 -5,691,424 $1.03 $-5,846,060
13. Aug 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 08. Aug 18 08. Aug 18 -10,450,180 $1.13 $-11,859,178
07. Aug 18 Buy BlackRock, Inc. Company 02. Aug 18 02. Aug 18 6,987,960 $1.19 $8,292,053
02. Aug 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. Jul 18 30. Jul 18 3,269,000 $1.23 $4,012,331
02. Aug 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 30. Jul 18 30. Jul 18 -118,656 $1.23 $-145,637
02. Aug 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 30. Jul 18 30. Jul 18 2,589,781 $1.23 $3,178,666
02. Aug 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. Jul 18 30. Jul 18 -3,269,000 $1.23 $-4,012,331
02. Aug 18 Sell J.P. Morgan Asset Management, Inc. Company 30. Jul 18 30. Jul 18 -213,000 $1.23 $-261,434
02. Aug 18 Buy J.P. Morgan Asset Management, Inc. Company 30. Jul 18 30. Jul 18 2,460,000 $1.23 $3,019,374
20. Jul 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 17. Jul 18 17. Jul 18 2,340,411 $1.21 $2,834,455
X
Management checks
We assess Weichai Power's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Weichai Power has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Weichai Power Co., Ltd. designs, develops, produces, sells, and repairs diesel engines and related parts, automobiles, and other automobile components in the People’s Republic of China and internationally. It operates through Diesel Engines, Automobiles and Other Major Automobile Components, Other Components, Import & Export Services, and Forklift Trucks and Supply Chain Solution segments. The company offers heavy duty truck and construction machinery engines; heavy-duty trucks; heavy-duty gear boxes; forklift trucks and warehouses technology services; and supply chain solutions. It also provides spark plugs, axles, chassis, air-conditioner compressors, hydraulic controlling parts, etc. The company was founded in 2002 and is headquartered in Weifang, the People’s Republic of China. Weichai Power Co., Ltd. is a subsidiary of Weichai Group Holdings Limited.

Details
Name: Weichai Power Co., Ltd.
WEIC.F
Exchange: OTCPK
Founded: 2002
HK$13,778,408,989
7,933,873,895
Website: http://www.weichaipower.com
Address: Weichai Power Co., Ltd.
197, Fu Shou East Street,
Section A,
Weifang,
Shandong Province, 261061,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2338 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 11. Mar 2004
OTCPK WEIC.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 11. Mar 2004
DB WI4 Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 11. Mar 2004
SHSC 2338 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 11. Mar 2004
SZSC 2338 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 11. Mar 2004
OTCPK WEIC.Y UNSPONSORD ADR Pink Sheets LLC US USD 24. Dec 2008
SZSE 000338 Domestic Shares Shenzhen Stock Exchange CN CNY 21. May 2007
XSEC 000338 Domestic Shares Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect CN CNY 21. May 2007
Number of employees
Current staff
Staff numbers
74,474
Weichai Power employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:54
End of day share price update: 2019/07/10 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/04/28
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.