Weichai Power profit increased year-on-year

On the evening of October 30, Weichai Power disclosed the third quarter report. From January to September of this year, the company's operating performance continued to increase, with an accumulated operating income of RMB 56.646 billion, an increase of 29.57% year-on-year; and a net profit attributable to the shareholders of the listed company of RMB 4.445 billion, an increase of 64.35% year-on-year; and a realized earnings per share of RMB 2.22. At the same time, the weighted average return on net assets of the company in the first three quarters reached 15.12%, an increase of 4.74 percentage points over the same period of last year.

From a single-quarter perspective, from July to August of this year, the company achieved operating income of 22.045 billion yuan, an increase of 77.54% over the same period of last year; the net profit attributable to shareholders of listed companies was 681 million yuan, an increase of 9.79% over the same period of the previous year; Earn 0.34 yuan per share.

At the same time, the company's growing operating performance has also given businesses ample operating cash flow. From the cumulative point of view this year, the company's net cash flow from operating activities from January to September reached 4.064 billion yuan, a substantial increase of 472.95%.

According to the company's third quarterly report, the company's revenue growth in the first three quarters of the previous year was mainly due to the consolidation of KION's third-quarter operating income during the reporting period. At the same time, the major reasons for the larger year-on-year increase in net profit were the increase in the company’s operating income and the significant increase in investment income resulting from the revaluation of KION’s share value.

The information shows that Weichai Power mainly designs, develops, manufactures, sells, repairs, and imports and exports diesel engines and related products. Industry analysts pointed out that the company is in the period of internationalization and diversification transformation. The current major profit still comes from heavy truck engines, and the compound growth rate of the heavy truck industry in the next three years is expected to be around 5%. At the same time, the speed of self-built engines at downstream automakers is accelerating and the company's domestic operations will be under pressure. However, the company has acquired the Linde company to enter the construction machinery hydraulics industry and will be expected to open up new business growth space.