Hong Kong | Automobile Parts | Update Report
Net Profit Reached A New High in 2018, Increasing by Nearly Thirty Percent In 2018, Weichai recorded an annual revenue of RMB159.3 billion, increasing by 5% yoy, and a net profit attributable to the parent company of RMB8.66 billion, increasing by 27% yoy. The basic EPS was RMB1.08, the dividend was RMB0.46 totaling the final dividend of RMB0.28 and the medium-term dividend of RMB0.18, and the dividend payout ratio was 42.6%. In addition, the Company spent nearly RMB500 million to re-purchase and cancel over 63 million A-shares, which accounted for 0.8% of the total share capital. In 2018, Weichai sold 363,000 heavy truck engines in total, basically flat with the same yoy, and accounted for 31.6% of the market share, which remained stable (when compared to 27% in 2016 and 33.1% in 2017); its subsidiary, Shaanxi heavy-duty truck, sold 153,000
heavy trucks in total, increasing by 2.7% yoy and accounting for 13.3% of the market share; its another subsidiary, Fast, sold 909,000 transmissions, increasing by 8.9% yoy; and its
overseas subsidiary, Kion, recorded an annual revenue of EUR8 billion, increasing by 5.2% yoy. The Company expects a sales revenue of RMB175 billion approx. in 2019, an increase of 10% approx. over 2018. In the reporting period, three expenses and R&D expenses accounted for 13.36%, decreasing by 0.19 ppts yoy Vs 2017, among which, the sales expenses accounted for 6.67%, decreasing by 0.15 ppts, the administration expenses (including R&D expenses) was controlled at 6.64%, slightly increasing by 0.28 ppts yoy, and the R&D expenses accounted for 2.71%, increasing by 0.25 ppts. The Company continued to build its moat with high R&D investment. The Company repaid part of long-term debts, and the gearing ratio decreased by 2.6 ppts to 32.9%. Meanwhile, the ratio of financial expenses dropped by 0.34 ppts, benefiting from the increase of interest income from bank deposits. In 2018, the Company`s gross sales margin was 22.33%, increasing by 0.50 ppts when compared to that of 2017. The net profit margin increased from 6.1% to 7.3%, with further
improved profitability. The Company`s heavy-duty engine enjoyed a stable dominant position in the heavy truck market, 5-ton loader market and above-11m bus market.