The following is a summary of the China Yuchai International Limited (CYD) Second Half and Full Year 2023 Earnings Call Transcript:
Financial Performance:
China Yuchai International Limited reported an increase in revenue by 18.9% in the second half of 2023 and 12.6% for the full year 2023.
The gross profit, operating profit and earnings per share all increased by double-digits in 2023.
Strong balance sheet maintained, with cash and bank balances at RMB6 billion ($852.7 million) as at 31st December 2023.
The Board of Directors declared a cash dividend of $0.28 per ordinary share, paid in August 2023.
FY 2023 revenue was RMB18 billion ($2.5 billion), improving from RMB16 billion in FY 2022, but unit sales decreased by 2.4% to 313,493 units.
Gross profit increased by 16.7% with an improved gross margin of 16.2% due to higher revenue from heavy-duty engines and cost reduction initiatives.
Operating profit and Net profit rose by 17.4% and 30.6% respectively.
Earnings per share increased to RMB6.99 or $0.99 from RMB5.35 in FY 2022.
Business Progress:
Sales of truck and bus engines increased by 4% for the second half of 2023, with bus engine unit sales growing 34.5% year-over-year.
Heavy-duty truck engine unit sales improved due to increased logistical and new truck demand.
R&D expenditures, including capitalized costs, were RMB1.1 million or $150.3 million, focusing on performance enhancement of National VIb and Tier 4 emissions standard compliant engines and new energy products.
Hybrid engine YCA07N powers over 1,200 buses in Nanjing.
Marine and power generation businesses merged to form the Guangxi Yuchai Marine and Genset Power Company Limited.
The market for vehicle engines, especially heavy-duty and medium-duty, is expected to grow between 10% to 15% in 2024.
The company plans to maintain the same level of travelling and staff service expenses in 2024 due to their efforts in improving sales and launching new or upgraded engines.
More details: China Yuchai International IR
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