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Weichai Power Co
(2338)
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Rating:58Neutral
Price Target:
HK$24.50
â–¼(-22.47% Downside)
Action:Reiterated
Date:10/31/26
The score is primarily constrained by weak technicals (price below key moving averages and negative MACD), which signals unfavorable near-term momentum. Fundamentals are moderately positive due to strong revenue/earnings recovery, but higher leverage and a recent free-cash-flow decline reduce financial flexibility. Valuation is supportive with a reasonable P/E and an above-average dividend yield.
Positive Factors
Revenue and earnings recovery
The sharp recovery in revenue growth and net income shows stronger operating performance than in the weaker 2022 period. If sustained, this scale of improvement can support reinvestment, strengthen customer relationships, and provide a broader earnings base over the next several quarters.
Negative Factors
Elevated leverage
The substantial increase in leverage compared with 2024 reduces financial flexibility even though debt-to-equity improved from 2025. Higher borrowing can constrain investment choices, increase sensitivity to weaker operating conditions, and make a cyclical downturn more difficult to manage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings recovery
The sharp recovery in revenue growth and net income shows stronger operating performance than in the weaker 2022 period. If sustained, this scale of improvement can support reinvestment, strengthen customer relationships, and provide a broader earnings base over the next several quarters.
Read all positive factors
Weichai Power Co (2338) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$205.08B
Dividend Yield4.37%
Average Volume (3M)17.00M
Price to Earnings (P/E)13.6
Beta (1Y)0.49
Revenue Growth13.66%
EPS Growth13.88%
CountryHK
Employees101,440
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.47
Shares Outstanding1,943,040,000
10 Day Avg. Volume15,300,137
30 Day Avg. Volume17,004,243
Financial Highlights & Ratios
PEG Ratio-2.56
Price to Book (P/B)1.57
Price to Sales (P/S)0.65
P/FCF Ratio6.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$49.23Price Target Upside55.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.7
Revenue Forecast (FY)HK$255.81B
Weichai Power Co Business Overview & Revenue Model
Company Description
Weichai Power Co., Ltd. is a global enterprise specializing in the production and distribution of diesel engines, vehicles, and a wide array of automotive components. The company organizes its extensive operations across three key segments: Engine...
How the Company Makes Money
Weichai Power makes money primarily by selling powertrain and heavy-duty equipment products and related components to original equipment manufacturers (OEMs) and end customers. Key revenue streams typically include: (1) Sales of engines and power ...
Weichai Power Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 241.24B | 225.55B | 215.69B | 213.96B | 175.16B | 203.55B |
| Gross Profit | 50.60B | 45.53B | 48.39B | 44.21B | 31.15B | 39.60B |
| EBITDA | 25.72B | 27.11B | 33.84B | 28.42B | 18.55B | 23.38B |
| Net Income | 12.66B | 10.65B | 11.40B | 9.01B | 4.91B | 9.49B |
Balance Sheet | ||||||
| Total Assets | 372.53B | 381.02B | 343.88B | 334.25B | 293.67B | 277.04B |
| Cash, Cash Equivalents and Short-Term Investments | 87.34B | 83.54B | 88.56B | 104.28B | 82.71B | 81.43B |
| Total Debt | 91.39B | 96.97B | 22.21B | 48.03B | 49.09B | 36.85B |
| Total Liabilities | 238.81B | 246.83B | 221.92B | 221.56B | 189.56B | 174.08B |
| Stockholders Equity | 93.96B | 93.23B | 86.70B | 79.34B | 73.18B | 70.91B |
Cash Flow | ||||||
| Free Cash Flow | 18.84B | 22.04B | 18.73B | 20.27B | -8.98B | 8.65B |
| Operating Cash Flow | 24.35B | 28.66B | 26.09B | 27.47B | -2.35B | 14.66B |
| Investing Cash Flow | -9.55B | -16.45B | -28.91B | -5.74B | -8.55B | -5.41B |
| Financing Cash Flow | -9.22B | -18.31B | -13.84B | -13.03B | 4.85B | 3.12B |
Weichai Power Co Technical Analysis
Negative
31.60
Price Trends
28.87
Negative
31.38
Negative
31.19
Negative
Market Momentum
-1.47
Positive
32.74
Neutral
45.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2338, the sentiment is Negative. The current price of 31.6 is above the 20-day moving average (MA) of 26.38, above the 50-day MA of 28.87, and above the 200-day MA of 31.19, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 32.74 is Neutral, neither overbought nor oversold. The STOCH value of 45.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2338.
Weichai Power Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$25.02B | 6.37 | 18.22% | 3.63% | 13.48% | 55.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | HK$5.18B | 4.59 | 10.15% | 9.79% | 19.90% | 67.16% | |
58 Neutral | HK$205.08B | 13.64 | 13.43% | 4.37% | 13.66% | 13.88% | |
58 Neutral | HK$95.38B | 15.62 | 10.15% | 3.90% | 7.45% | 44.00% | |
52 Neutral | HK$63.80B | 19.85 | 7.91% | 3.33% | 24.02% | 68.77% | |
49 Neutral | HK$94.61B | 68.31 | 0.60% | 0.68% | 16.39% | 46.43% |
* Consumer Cyclical Sector Average
HK:2338
Weichai Power Co
23.52
6.92
41.70%
HK:1072
Dongfang Electric
15.56
-3.63
-18.90%
HK:2727
Shanghai Electric Group Company
2.40
-2.28
-48.71%
HK:2208
Xinjiang Goldwind Science & Technology Co
6.91
-6.62
-48.94%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.41
-0.40
-22.07%
HK:1133
Harbin Electric Co. Ltd. Class H
11.19
-1.66
-12.93%
Weichai Power Co Corporate Events
Weichai Power Affirms Integrity of Unaudited Q3 2026 Results
Oct 29, 2026
Weichai Power Co., Ltd. has published its third quarterly report for 2026, affirming that the board, senior management and accounting heads guarantee the authenticity, accuracy and completeness of the disclosed financial information. The company a...
Weichai Holding Arm Lifts Stake in Shenzhen-Listed A Shares
Oct 21, 2026
Weichai Power has reported progress on a previously announced plan for its holding company, Weichai Group Holdings Limited, to increase its stake via centralized price bidding of A shares on the Shenzhen Stock Exchange. At the halfway point of the...
Weichai Power Schedules Board Meeting to Review Nine-Month Results
Oct 16, 2026
Weichai Power has announced that its board of directors will convene on 29 October 2026 to review and consider approval of the unaudited consolidated results for the nine months ended 30 September 2026. The planned meeting signals an upcoming upda...
Weichai Power Sets Timetable and Terms for 2026 Interim Dividend on H Shares
Sep 14, 2026
Weichai Power has detailed the timetable for its 2026 interim cash dividend for holders of H shares, including the last cum‑dividend trading day on 24 September, ex‑dividend trading from 25 September and a register closure from 29 Sept...
Weichai Power updates details of 2026 interim cash dividend
Sep 14, 2026
Weichai Power Co., Ltd. has announced an updated interim cash dividend for the six months ended 30 June 2026, declaring RMB 5.17 per 10 shares, to be paid in Hong Kong dollars at HKD 5.976 per 10 shares using an exchange rate of RMB 1 to HKD 1.155...
Weichai Power Shareholders Approve Connected Transaction Agreements and Elect New Executive Director
Sep 14, 2026
Weichai Power shareholders approved all resolutions put to an extraordinary general meeting held on 14 September 2026, including new and supplemental supply and purchase agreements with China National Heavy Duty Truck Corp. and Weichai Heavy Machi...
Weichai Power Updates Board Structure and Committee Roles
Sep 14, 2026
Weichai Power Co., Ltd. has updated the composition of its board of directors, naming Ma Changhai as chairman and Wang Decheng as general manager among a mix of executive, non-executive, independent and employee representative directors, reflectin...
Weichai Power Delivers Strong Profit Growth in First Half of 2026
Aug 27, 2026
Weichai Power reported interim revenue of about RMB123.16 billion for the six months ended 30 June 2026, up 8.8% year on year, driven by higher sales despite increased costs and finance expenses. Net profit attributable to shareholders jumped 36.5...
Weichai Power Announces Interim Cash Dividend for First Half of 2026
Aug 27, 2026
Weichai Power Co., Ltd. is a Hong Kong-listed manufacturer in the powertrain and equipment sector, best known for producing diesel engines, power systems and related industrial components. The company serves both domestic Chinese and international...
Weichai Power Cuts Restricted Share Repurchase Price and Cancels Part of Incentive Shares
Aug 27, 2026
Weichai Power has adjusted the repurchase price for restricted shares issued under its A-share restricted share incentive scheme, cutting the price from RMB4.894 to RMB4.003 per share in line with shareholder authorisation and PRC regulations. The...
Weichai Power Cuts Share Capital After A-Share Repurchases and Incentive Cancellations
Aug 27, 2026
Weichai Power Co., Ltd. has amended its Articles of Association to reflect a reduction in registered capital and total share count following several share repurchase and cancellation actions. These changes stem from the execution of its A share Re...
Weichai Power Calls EGM to Approve Key Connected Transactions and Board Appointment
Aug 25, 2026
Weichai Power Co. has called an extraordinary general meeting for 14 September 2026 in Weifang, Shandong, to seek shareholder approval for a series of ordinary resolutions tied to continuing connected transactions. These include a new CNHTC supply...
Weichai Power Sets Board Meeting to Review 2026 Interim Results and Dividend
Aug 17, 2026
Weichai Power Co., Ltd. has scheduled a board meeting for 27 August 2026 to review and approve its interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an interim dividend and address oth...
Weichai Power Delays Circular on Connected Transactions to August 31
Jul 31, 2026
Weichai Power has announced a delay in sending a shareholder circular relating to its non-exempt continuing connected transactions, which include new framework and supplemental agreements requiring independent review. The circular, originally expe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.