China Yuchai International Stock Earnings Reports

China Yuchai Intl (CYI) reported strong 2H and full-year 2025 results with broad-based volume recovery and margin expansion. 2H25 revenue rose 33.5% YoY to RMB 11.8 billion (2H figures) and FY25 revenue grew ~28.9% to RMB 24.7 billion; gross margin expanded to 18.9% (2H) and 16.5% (FY). Engine unit sales increased substantially (461k units in FY25, +29% YoY) with outsized gains in truck & bus (heavy-duty up ~80% YoY) and strong growth in marine/genset and industrial engines. Demand from data centers was a major driver: combined MTU Yuchai and Yuchai branded high-horsepower engines sold to data centers exceeded 2,000 units in 2025 (vs. 750 in 2024). Management is expanding production capacity, growing international footprints (Vietnam, Thailand, Mexico, Germany deliveries), pursuing technology and supply-chain resilience (acquired ~28% of a fuel-injection technology firm; LP in a tech-focused PE fund), and filed for a potential HKEX listing for its marine & genset subsidiary. R&D spend rose materially (R&D ~RMB 1.5 billion including capitalized costs) as CYI invests in emissions compliance and new-energy powertrains (hydrogen, methanol, ammonia). Financial position: cash > RMB 7.9 billion; paid a $0.53/share cash dividend in July 2025. Key risks/notes: other operating income fell (mainly lower government grants), effective tax was elevated in 2H due to deferred tax adjustments (non-cash), JV contribution mixed (MTU Yuchai profit growth but some JV variability), and management cautioned uncertainty in 2026 guidance driven by policy dependence in China. Delivery lead times for key products reported around 3–4 months; some JV supply chain constraints noted for MTU joint operations.