Greenridge raised Yuchai International (CYD.US) to a purchase rating, and the target price rose to $60, optimistic about the commercial vehicle and high-horsepower engine boom

The Zhitong Finance App learned that on July 27, the overseas research institute Greenridge Global released a research report to raise the investment rating of Yuchai International (CYD.US) from holding to buy (buy). The target price was raised from $45 to $60. At the time of publication of the report, the company's stock price was 45.07 US dollars.

The core logic behind this increase comes from the boom in the domestic commercial vehicle market and the high demand for high-horsepower engines (HHP). Domestic sales of medium and heavy commercial vehicles increased 35% and 30%, respectively; at the same time, demand for data center generators continued to exceed production capacity, and Yuchai's high-horsepower engine production capacity expansion was implemented as planned. The agency raised sales expectations for high-horsepower engines and updated the 2026-2027 fiscal year. The overall revenue is expected to remain flat in 2027. The target price is calculated on average using two valuation methods: 15 times forward price-earnings ratio and 6 times enterprise value multiple (EV/EBITDA).

The company's board of directors has approved a dividend of $0.87 per share for the fiscal year 2025, which is higher than the agency's previous forecast of $0.80. The dividend ratio is about 40%. The payment was completed on July 28. The company has abundant cash reserves, with book cash of about 7.913 billion yuan and short-term debt of about 2 billion yuan. Debt pressure is low. Preparations for the MGP (Guangxi Yuchai Shipbuilding Electric Co., Ltd.) Hong Kong IPO are continuing, but the listing schedule has not yet been finalized. The agency said that the company has yet to receive any notice regarding the investigation of former GYMCL (Yuchai International's most core domestic operating subsidiary) employees. Currently, it appears that the relevant investigation has nothing to do with Yuchai.