China Yuchai International H1 Earnings Call Highlights

China Yuchai International reported higher revenue, engine sales and profitability for the first half of 2026, as demand for larger engines, heavy-duty trucks and power-generation applications supported margins. President Weng Ming Hoh said the company’s revenue reached RMB 14.7 billion, or $2.2 billion, for the six months ended June 30, compared with RMB 12.9 billion in the prior-year period. Engine unit sales increased 10.9% to 277,684 units. Gross profit rose 36.5% year over year to RMB 2.5 billion, or $368.7 million, while gross margin expanded to 17.1% from 14.3%. Operating profit increased 58.9% to RMB 988.2 million, or $145.1 million, and net profit attributable to shareholders rose 53.2% to RMB 560.6 million, or $82.3 million. Diluted earnings per share were RMB 14.81, or $2.17, compared with RMB 9.75 in the first half of 2025. The company said the first-half figures were unaudited and prepared under IFRS accounting standards. Management attributed the improvement in profitability in part to higher sales of larger engines, which lifted average selling prices and margins. Total truck-engine unit sales rose 20.4% from a year earlier, led by a 47.3% increase in heavy-duty truck engine sales. Chief Financial Officer Choon Sen Loo said the company’s truck-engine growth outpaced industry trends cited by the China Association of Automobile Manufacturers. Heavy-duty truck engine unit sales increased more rapidly than reported heavy-duty truck sales, while light-duty truck engine unit sales rose 23.6% despite a reported decline in the broader light-duty truck market. Medium-duty truck engine sales increased 7.9%. Off-road engine unit sales grew 7.7%, supported by marine and power-generation demand. Engine sales in those marine and power-generation markets increased 42%, while industrial-application sales rose 15.8%. Agricultural-machinery engine sales, however, declined 18.9%. Loo said gross-margin expansion reflected a more favorable product mix, including larger and heavy-duty engines, along with continuing operational-efficiency efforts. He noted that higher precious-metal prices partly offset the company’s cost-improvement measures. The company said combined production capacity for high-horsepower engines across its own operations and the MTU Yuchai joint venture stood at roughly 5,000 units. Sales of engines to artificial-intelligence data centers from the joint venture and China Yuchai’s own brand totaled about 1,800 units during the first half. During the question-and-answer session, Investor Relations representative Kevin Theiss said the company now expects full-year AI data-center engine sales of about 3,500 units or more. Management said that figure applies only to AI data-center applications, while high-horsepower engines are also sold for other power-generating applications.