China Yuchai International Ltd (NYSE:CYD) saw its stock soar 5.25% in Wednesday's intraday trading session, driven by the company's robust financial performance for the fiscal year 2024. The engine manufacturer reported revenue growth of 6.6% year-over-year to RMB 19.1 billion (USD 2.7 billion), fueled by a 13.7% increase in engine sales to 356,586 units, outpacing the Chinese truck and bus vehicle markets.
Notably, the company's profitability improved, with gross profit rising 10.8% to RMB 2.8 billion (USD 392.1 million) and a higher gross margin of 14.7%, up from 14.1% in FY 2023. Net profit attributable to shareholders also increased, reaching RMB 323.1 million (USD 44.9 million), compared to RMB 285.5 million in FY 2023. These positive results were further bolstered by a 63.6% year-over-year growth in profits from associates and joint ventures, particularly the MTU Yuchai Power joint venture.
China Yuchai's strong performance was underpinned by its strategic agreements and market expansion efforts, such as the partnership with Kim Long Motu in Vietnam for technology licensing. Additionally, the company maintained a robust cash position with cash and bank balances of RMB 6.4 billion (USD 895 million) as of December 31, 2024, despite share repurchases and dividend distributions.
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