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Weichai Power Co Ltd Class H (HK:2338)
:2338
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Weichai Power Co (2338) AI Stock Analysis

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HK:2338

Weichai Power Co

(2338)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
HK$16.50
▼(-7.51% Downside)
Weichai Power Co's strong financial performance is the most significant factor, supported by solid revenue growth and profitability. The technical analysis shows bullish momentum, though caution is advised due to overbought signals. The valuation is reasonable with a good dividend yield, making it an attractive option for income-focused investors.
Positive Factors
Revenue Growth
Steady revenue growth indicates resilience and the ability to maintain market position, supporting long-term business sustainability.
Cash Generation
Effective cash generation from operations enhances financial flexibility and supports strategic investments and debt management.
Profitability
Improved profit margins reflect efficient cost management and operational effectiveness, contributing to long-term profitability.
Negative Factors
Shareholder Returns
Moderate ROE suggests potential for improvement in generating shareholder value, indicating room for enhancing returns.
Free Cash Flow
A decrease in free cash flow could limit the company's ability to fund new projects or return capital to shareholders, affecting growth.
Equity Ratio
While stable, a relatively low equity ratio may limit financial flexibility, impacting the company's ability to leverage opportunities.

Weichai Power Co (2338) vs. iShares MSCI Hong Kong ETF (EWH)

Weichai Power Co Business Overview & Revenue Model

Company DescriptionWeichai Power Co., Ltd. (stock code: 2338) is a leading Chinese manufacturer of powertrains and industrial engines, primarily focusing on the production of engines, gearboxes, and related components for vehicles, construction machinery, and marine applications. The company operates in multiple sectors, including automotive, power machinery, and new energy, with a strong emphasis on innovation and technology development in the energy sector. Weichai is known for its diverse product portfolio, which includes diesel engines, natural gas engines, and hybrid power systems, catering to both domestic and international markets.
How the Company Makes MoneyWeichai Power generates revenue primarily through the sale of its engines and components to various industries, including automotive, construction, and marine sectors. The company has established key revenue streams from the production and sale of heavy-duty and light-duty engines, gearboxes, and complete power systems. Additionally, Weichai benefits from service and maintenance contracts, which provide ongoing income after the initial sale. Significant partnerships with domestic and international vehicle manufacturers, as well as investments in research and development for new energy solutions, further enhance its revenue potential. The company's strategic initiatives in expanding its footprint in foreign markets also contribute to its overall earnings.

Weichai Power Co Financial Statement Overview

Summary
Weichai Power Co exhibits strong financial health with steady revenue growth, improved profitability, and effective cash flow management. The balance sheet is robust with manageable leverage, though there is room for enhancing shareholder returns.
Income Statement
85
Very Positive
Weichai Power Co has demonstrated strong revenue growth with a 1% increase from 2023 to 2024. The gross profit margin improved slightly to 22.44% in 2024, reflecting efficient cost management. The net profit margin also increased to 5.29%, indicating enhanced profitability. EBIT and EBITDA margins are solid, suggesting a robust operational performance.
Balance Sheet
78
Positive
The company maintains a strong equity base with an equity ratio of 25.22%, indicative of financial stability. The debt-to-equity ratio decreased to 0.26, showing improved leverage management. However, the return on equity is moderate at 13.15%, suggesting potential for further improvement in generating shareholder value.
Cash Flow
82
Very Positive
Operating cash flow to net income ratio is strong at 2.29, showing effective cash generation from operations. Although free cash flow decreased slightly, the company maintains a healthy cash position. The free cash flow to net income ratio of 1.64 indicates robust cash profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue216.35B215.69B213.96B175.16B203.55B197.49B
Gross Profit49.02B48.39B44.21B31.15B39.60B38.14B
EBITDA19.63B33.84B28.42B18.55B23.38B22.63B
Net Income11.14B11.40B9.01B4.91B9.49B9.23B
Balance Sheet
Total Assets365.32B343.88B334.25B293.67B277.04B270.75B
Cash, Cash Equivalents and Short-Term Investments83.05B88.56B104.28B82.71B81.43B68.07B
Total Debt24.39B22.21B48.03B49.09B36.85B44.97B
Total Liabilities239.03B221.92B221.56B189.56B174.08B190.32B
Stockholders Equity89.53B86.70B79.34B73.18B70.91B51.20B
Cash Flow
Free Cash Flow13.89B18.73B20.27B8.65B17.16B
Operating Cash Flow6.84B26.09B27.47B14.66B22.93B
Investing Cash Flow-7.92B-28.91B-5.74B
Financing Cash Flow-2.89B-13.84B-13.03B4.85B3.12B

Weichai Power Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.84
Price Trends
50DMA
15.11
Positive
100DMA
15.60
Positive
200DMA
14.96
Positive
Market Momentum
MACD
0.96
Negative
RSI
89.43
Negative
STOCH
91.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2338, the sentiment is Positive. The current price of 17.84 is above the 20-day moving average (MA) of 15.76, above the 50-day MA of 15.11, and above the 200-day MA of 14.96, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 89.43 is Negative, neither overbought nor oversold. The STOCH value of 91.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2338.

Weichai Power Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$30.14B12.6115.06%1.66%34.78%98.79%
75
Outperform
HK$78.62B18.377.71%2.16%20.99%-5.99%
74
Outperform
HK$149.59B11.5012.91%4.33%3.55%8.89%
74
Outperform
$71.28B27.536.78%1.13%25.84%26.05%
69
Neutral
€6.41B10.317.29%2.83%11.18%46.57%
65
Neutral
$141.41B61.851.93%7.59%376.62%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2338
Weichai Power Co
17.84
6.37
55.47%
HK:1072
Dongfang Electric
21.30
10.98
106.40%
HK:2727
Shanghai Electric Group Company
4.57
1.17
34.41%
HK:2208
Xinjiang Goldwind Science & Technology Co
13.62
6.95
104.11%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.74
1.05
151.81%
HK:1133
Harbin Electric Co. Ltd. Class H
14.83
12.09
441.04%

Weichai Power Co Corporate Events

Weichai Power Co., Ltd. Approves Key Resolutions at Extraordinary General Meeting
Oct 31, 2025

Weichai Power Co., Ltd. announced the successful approval of several resolutions during their Extraordinary General Meeting held on October 31, 2025. These resolutions include amendments to decision-making rules on connected transactions, management measures on the use of proceeds, and investment and operations rules. Additionally, new agreements regarding the sale and purchase of products and services with Weichai Holdings were approved, indicating a strategic move to enhance operational efficiency and strengthen business relationships. The approval of these resolutions is expected to positively impact the company’s operational capabilities and market positioning.

The most recent analyst rating on (HK:2338) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Reports Strong Q3 2025 Financial Results
Oct 31, 2025

Weichai Power Co., Ltd. is a leading Chinese company in the manufacturing sector, specializing in the production of diesel engines and powertrain systems, with a strong presence in the automotive and industrial equipment industries.

Weichai Power Co. Releases 2025 Q3 Report Highlighting Transparency
Oct 30, 2025

Weichai Power Co., Ltd. has released its third quarterly report for 2025, ensuring stakeholders of the authenticity, accuracy, and completeness of the disclosed information. The report, which has not been audited, emphasizes the company’s commitment to transparency and legal compliance, reflecting its stable position in the market and dedication to maintaining investor trust.

The most recent analyst rating on (HK:2338) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Adjusts A Share Repurchase Price Following Profit Distribution
Oct 17, 2025

Weichai Power Co., Ltd. announced an adjustment to the repurchase price of its A Shares under the A Share Repurchase Plan, reducing the price cap from RMB23.22 to RMB22.86 following the company’s 2025 interim profit distribution. This adjustment reflects the company’s ongoing financial strategies and market responsiveness, impacting its shareholders and potential investors by aligning the repurchase plan with current market conditions and profit distribution outcomes.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$22.80 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Schedules Board Meeting to Review Financial Results
Oct 17, 2025

Weichai Power Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to review and potentially approve the unaudited consolidated financial results for the nine months ending September 30, 2025. This meeting could have significant implications for the company’s financial transparency and stakeholder confidence, as it will provide insights into the company’s performance and strategic direction.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$22.80 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Co. Announces Extraordinary General Meeting for Strategic Approvals
Oct 15, 2025

Weichai Power Co., Ltd. has announced an extraordinary general meeting scheduled for October 31, 2025, to seek shareholder approval for several proposed amendments and agreements. These include changes to decision-making rules on connected transactions, management measures on the use of proceeds, and various sale and purchase agreements with associated companies. The approval of these resolutions is expected to streamline operations and enhance the company’s strategic partnerships, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$22.80 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Announces EGM and Register Closure for Governance Amendments
Oct 13, 2025

Weichai Power Co., Ltd. has announced the closure of its register of members in preparation for an extraordinary general meeting (EGM) scheduled for October 31, 2025. The meeting will address proposed amendments to corporate governance policies and new framework agreements concerning non-exempt continuing connected transactions. Shareholders must ensure their eligibility to vote by lodging transfer documents by October 24, 2025. This move is part of Weichai Power’s efforts to strengthen its governance and operational agreements, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$16.50 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Announces Interim Dividend Payment Schedule for 2025
Sep 12, 2025

Weichai Power Co., Ltd. has announced the timetable for the payment of interim cash dividends for its H Shareholders, with key dates set for September and October 2025. The dividends will be declared in RMB and paid in Hong Kong Dollars, with the exchange rate determined by the People’s Bank of China. This announcement is part of Weichai Power’s ongoing efforts to provide value to its shareholders and maintain its competitive position in the market.

The most recent analyst rating on (HK:2338) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Updates Interim Dividend Details for 2025
Sep 12, 2025

Weichai Power Co., Ltd. announced an update to its interim dividend for the six months ending June 30, 2025, declaring a dividend of RMB 3.58 per 10 shares. The announcement includes details on the book close period, record date, payment date, and withholding tax information, impacting shareholders and investors involved in Southbound and Northbound Trading. The dividend will be paid in Hong Kong dollars, with specific tax obligations outlined for different investor categories, reflecting the company’s commitment to transparent financial practices.

The most recent analyst rating on (HK:2338) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Reports Mixed Interim Financial Results
Aug 30, 2025

Weichai Power Co., Ltd., a leading Chinese vehicle and equipment manufacturing conglomerate, specializes in producing powertrains, commercial vehicles, agricultural equipment, and intelligent logistics solutions. In its latest interim financial report for the first half of 2025, Weichai Power reported a modest 0.6% increase in revenue, reaching approximately RMB113,152 million. However, the net profit attributable to shareholders decreased by 4.4% to RMB5,643 million, with basic earnings per share also declining by 4.4% to RMB0.65. The company’s financial performance was impacted by increased distribution, selling, and administrative expenses, despite a slight improvement in revenue. Operating profit fell to RMB7,291 million from RMB8,955 million in the previous period, while total comprehensive income attributable to shareholders also saw a decline. Looking ahead, Weichai Power remains committed to enhancing its product quality, technology, and cost-effectiveness, aiming to strengthen its position in the global market amid challenging economic conditions.

Weichai Power Co. Strengthens Governance with New Nomination Committee
Aug 29, 2025

Weichai Power Co., Ltd. has established a Nomination Committee within its Board of Directors to enhance its corporate governance structure. This committee is tasked with formulating selection criteria and procedures for directors and management personnel, reviewing candidates, and making recommendations to the board. The committee’s establishment is part of Weichai’s efforts to optimize board composition and ensure effective leadership, which could positively impact the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Co. Enhances Governance with New Remuneration Committee
Aug 29, 2025

Weichai Power Co., Ltd. has established a Remuneration Committee to enhance its corporate governance by overseeing the appraisal and remuneration management system for its directors and management personnel. This committee is tasked with formulating and reviewing remuneration policies and schemes, ensuring alignment with legal requirements and corporate governance codes. The move is expected to strengthen the company’s governance structure and provide clear guidelines for executive compensation, potentially impacting stakeholder confidence and the company’s operational efficiency.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Co. Forms Strategic Development and Investment Committee
Aug 29, 2025

Weichai Power Co., Ltd. has established a Strategic Development and Investment Committee to enhance its strategic development and investment decision-making processes. This committee is tasked with reviewing and advising on the company’s mid-term and long-term development strategies and significant investment decisions. By improving the efficiency and quality of major investment decisions, Weichai Power aims to strengthen its core competitiveness and refine its corporate governance structure, potentially impacting its operations and market positioning positively.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Co. Strengthens ESG Commitment with New Committee
Aug 29, 2025

Weichai Power Co., Ltd. has established an Environmental, Social, and Governance (ESG) Committee to enhance its sustainable development efforts and improve decision-making efficiency in ESG initiatives. This move aligns with various regulatory guidelines and aims to strengthen the company’s commitment to high-quality development, potentially impacting its operational strategies and stakeholder relations positively.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Reports Mixed Interim Results Amid Revenue Growth
Aug 29, 2025

Weichai Power Co., Ltd. announced its interim financial results for the six months ending June 30, 2025, reporting a slight revenue increase of 0.6% to approximately RMB113,152 million. However, the company experienced a 4.4% decrease in net profit attributable to shareholders, amounting to RMB5,643 million, reflecting challenges in maintaining profitability amid rising costs and expenses. This financial performance may impact Weichai’s market positioning and stakeholder confidence as the company navigates the competitive landscape.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Announces Strategic Revisions and New Agreements for Continued Growth
Aug 29, 2025

Weichai Power Co., Ltd. has announced revisions to its annual caps and the extension of its Continuing Connected Transactions with Weichai Holdings and its associates. The company aims to streamline these transactions by combining similar ones into a single framework agreement, providing clarity to shareholders. Additionally, Weichai Power has entered into new framework agreements to continue transactions with Weichai Freshen Air, Shaanxi Automotive, and Weichai New Energy, ensuring compliance with listing rules and shareholder approval requirements. These strategic moves are expected to enhance operational efficiency and strengthen Weichai Power’s market positioning.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Announces Interim Dividend for 2025
Aug 29, 2025

Weichai Power Co., Ltd. has announced an interim cash dividend of RMB 3.58 per 10 shares for the six months ending June 30, 2025, reflecting its financial performance and commitment to shareholder returns. The dividend will be paid in Hong Kong dollars, with further details on ex-dividend dates and payment schedules to be announced, highlighting the company’s ongoing efforts to maintain transparency and shareholder engagement.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Co. Strengthens Governance with New Audit Committee
Aug 29, 2025

Weichai Power Co., Ltd. has established an Audit Committee within its Board of Directors to enhance decision-making and corporate governance. This committee is tasked with auditing the company’s financial information, ensuring effective management supervision, and overseeing internal and external audit processes. The formation of this committee aligns with regulatory requirements and aims to bolster transparency and accountability, potentially strengthening stakeholder confidence.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Schedules Board Meeting to Review Interim Results
Aug 19, 2025

Weichai Power Co., Ltd. has announced an upcoming board meeting scheduled for August 29, 2025, to review and potentially approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, reflecting the company’s ongoing financial strategy and potential impact on shareholder value.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$18.30 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

Weichai Power Announces Share Repurchase and Cancellation Plan
Aug 8, 2025

Weichai Power Co., Ltd. has announced the approval of a proposal to repurchase and cancel 1,270,000 restricted shares under its Restricted Share Incentive Scheme. This decision, approved by the Board on August 8, 2025, affects shares held by six incentive participants who have been subject to re-designation or other specified circumstances. The repurchase will be funded by the company’s internal resources, reflecting Weichai Power’s strategic management of its equity structure and commitment to aligning shareholder interests. The move is expected to impact the company’s financial structure and could influence its market positioning and stakeholder relations.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$20.00 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.

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.Date of analysis: Nov 04, 2025