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Weichai Power Co
(2338)
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Rating:60Neutral
Price Target:
HK$34.00
â–²(7.59% Upside)
Action:Reiterated
Date:08/29/26
The score is primarily supported by improved operating performance and strong recent free cash flow, but is held back by the materially higher leverage profile and weak technical momentum (below key moving averages with negative MACD). Valuation is moderate with a modest dividend yield, providing limited offset.
Positive Factors
Revenue and Profitability Growth
Sharp TTM revenue growth alongside improved net and EBIT margins indicates stronger operating performance and product demand. If sustained, this can enlarge the earnings base and support reinvestment across the company’s powertrain businesses.
Negative Factors
Materially Higher Leverage
The substantial increase in leverage reduces balance-sheet flexibility and raises sensitivity to interest costs, funding conditions and cyclical downturns. Higher debt could constrain investment or shareholder returns if commercial-vehicle demand weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Sharp TTM revenue growth alongside improved net and EBIT margins indicates stronger operating performance and product demand. If sustained, this can enlarge the earnings base and support reinvestment across the company’s powertrain businesses.
Read all positive factors
Weichai Power Co (2338) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$284.14B
Dividend Yield2.6%
Average Volume (3M)17.29M
Price to Earnings (P/E)17.9
Beta (1Y)0.78
Revenue Growth15.98%
EPS Growth21.42%
CountryHK
Employees101,440
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.50
Shares Outstanding1,943,040,000
10 Day Avg. Volume22,454,611
30 Day Avg. Volume17,287,651
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$49.20Price Target Upside55.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.71
Revenue Forecast (FY)HK$256.31B
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 primarily makes money by selling powertrain products and related equipment to original equipment manufacturers (OEMs) and end customers. Key revenue streams include: (1) Engines and power generation products: revenue from the sale of...
Weichai Power Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 240.64B | 225.55B | 215.69B | 213.96B | 175.16B | 203.55B |
| Gross Profit | 49.59B | 45.53B | 48.39B | 44.21B | 31.15B | 39.60B |
| EBITDA | 26.55B | 27.11B | 33.84B | 28.42B | 18.55B | 23.38B |
| Net Income | 12.94B | 10.65B | 11.40B | 9.01B | 4.91B | 9.49B |
Balance Sheet | ||||||
| Total Assets | 380.09B | 381.02B | 343.88B | 334.25B | 293.67B | 277.04B |
| Cash, Cash Equivalents and Short-Term Investments | 93.13B | 83.54B | 88.56B | 104.28B | 82.71B | 81.43B |
| Total Debt | 99.01B | 96.97B | 22.21B | 48.03B | 49.09B | 36.85B |
| Total Liabilities | 245.16B | 246.83B | 221.92B | 221.56B | 189.56B | 174.08B |
| Stockholders Equity | 96.08B | 93.23B | 86.70B | 79.34B | 73.18B | 70.91B |
Cash Flow | ||||||
| Free Cash Flow | 27.75B | 22.04B | 18.73B | 20.27B | -8.98B | 8.65B |
| Operating Cash Flow | 33.61B | 28.66B | 26.09B | 27.47B | -2.35B | 14.66B |
| Investing Cash Flow | -20.13B | -16.45B | -28.91B | -5.74B | -8.55B | -5.41B |
| Financing Cash Flow | -17.11B | -18.31B | -13.84B | -13.03B | 4.85B | 3.12B |
Weichai Power Co Technical Analysis
Positive
31.60
Price Trends
33.27
Positive
35.61
Negative
30.21
Positive
Market Momentum
-0.39
Negative
54.25
Neutral
81.65
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 31.6 is below the 20-day moving average (MA) of 32.73, below the 50-day MA of 33.27, and above the 200-day MA of 30.21, indicating a bullish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.65 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | HK$284.14B | 17.89 | 13.72% | 2.60% | 15.98% | 21.42% | |
59 Neutral | HK$35.44B | 8.79 | 18.09% | 2.68% | 13.48% | 55.89% | |
58 Neutral | HK$6.82B | 6.08 | 10.07% | 7.46% | 19.90% | 67.16% | |
54 Neutral | HK$118.39B | 18.82 | 10.15% | 2.99% | 10.07% | 40.67% | |
52 Neutral | HK$79.11B | 25.02 | 8.04% | 2.51% | 24.02% | 68.77% | |
50 Neutral | HK$107.47B | 76.46 | 0.60% | 0.54% | 16.39% | 46.43% |
* Consumer Cyclical Sector Average
HK:2338
Weichai Power Co
31.62
17.27
120.36%
HK:1072
Dongfang Electric
20.28
3.64
21.84%
HK:2727
Shanghai Electric Group Company
3.03
-0.44
-12.55%
HK:2208
Xinjiang Goldwind Science & Technology Co
9.16
-1.15
-11.16%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.85
-0.09
-4.75%
HK:1133
Harbin Electric Co. Ltd. Class H
15.20
5.64
58.91%
Weichai Power Co Corporate Events
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...
Weichai Power’s Parent Plans Up to RMB400 Million A-Share Increase
Jul 21, 2026
Weichai Power’s holding company, Weichai Group Holdings Limited, has proposed to increase its stake in the A shares of the company via centralized price bidding on the Shenzhen Stock Exchange, where it currently holds about 16.46% of outstan...
Weichai Power Sets Timetable and Payout for 2025 Final Dividend
Jul 3, 2026
Weichai Power Co., Ltd. has confirmed the timetable for its 2025 final cash dividend for holders of both A shares and H shares, following shareholder approval at its annual general meeting. The company has set out key dates including the last cum-...
Weichai Power Updates 2025 Final Dividend Details and Tax Arrangements
Jul 3, 2026
Weichai Power Co., Ltd. has updated details of its final cash dividend for the year ended 31 December 2025, declaring a payout of RMB 3.74 per 10 shares, with Hong Kong investors to receive HKD 4.302 per 10 shares based on a set exchange rate. The...
Weichai Power reshapes board as veteran director retires and new executive is nominated
Jul 3, 2026
Weichai Power announced that executive director Yuan Hongming will resign from the board and the company’s Strategic Development and Investment Committee with effect from 3 July 2026, as he has reached the statutory retirement age. The board...
Weichai Power Raises Caps and Extends Key Connected Transactions
Jul 3, 2026
Weichai Power Co., Ltd., a leading Chinese powertrain and heavy machinery producer, relies on extensive supply and purchase agreements with related parties such as Shaanxi Automotive, Weichai Heavy Machinery and CNHTC to support its engine and equ...
Weichai Power Updates Board Composition and Governance Structure
Jul 3, 2026
Weichai Power Co., Ltd., a Hong Kong-listed Chinese joint stock company, operates in the powertrain and heavy equipment manufacturing sector, providing engines and power systems to commercial vehicle, construction and industrial markets at home an...
Weichai Power Wins Strong Shareholder Backing at AGM, Adds Independent Director
Jun 22, 2026
Weichai Power Co., Ltd. reported that shareholders approved all resolutions presented at its 22 June 2026 annual general meeting, including the 2025 board report, annual report, audited financial statements and director remuneration. Investors als...
Weichai Power Details Board Composition and Committee Roles
Jun 22, 2026
Weichai Power Co., Ltd. has announced the current composition of its board of directors, detailing executive, non-executive, independent and employee representative roles, with Ma Changhai serving as chairman and Wang Decheng as general manager. T...
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.