Charging towards an electrified future
■ Despite strong engine unit sales growth of +34% yoy in 1H21, China Yuchai
International’s (Yuchai) 1H21 net profit fell 17% yoy, below our expectations.
■ We see temporary topline weakness in 2H21F post strong pre-buying in 1H,
but margins should start improving with N6 engines’ better production scale.
■ Reiterate Add on attractive valuations and sustainable dividend yields of
6.3%. Downside risk is capped by net cash per share of US$12.50.