China Yuchai subsidiary explores potential foreign stock exchange listing

SINGAPORE - China Yuchai International Limited (NYSE:CYD), a machinery company with a market capitalization of $1.17 billion, announced Monday that one of its indirect subsidiaries is considering a potential listing on a foreign stock exchange.

The company disclosed that preliminary work has begun for the potential listing, though the process remains in early stages. The listing will depend on several factors including due diligence results, necessary corporate reorganization, regulatory approvals, and market conditions.

"There is no certainty or assurance that the Potential Listing will materialise in due course or at all," the company stated in a press release.

China Yuchai, through its subsidiary Guangxi Yuchai Machinery Company Limited, is a powertrain solution provider in China specializing in the design and manufacture of engines for various applications including trucks, buses, construction equipment, and marine use. According to InvestingPro, the company maintains a "GOOD" financial health rating and has consistently paid dividends for 21 consecutive years.

The company offers a range of powertrain solutions including diesel, natural gas, and new energy products such as electric, hybrid and fuel cell systems. In 2024, Yuchai sold 356,586 engines. The company has demonstrated strong performance, with revenue reaching $3.16 billion and an impressive year-to-date return of 235%. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

China Yuchai clarified that this announcement does not constitute an offer of securities for sale in the United States, noting that any securities offered would require registration or an exemption from registration under U.S. securities laws. Based on current market indicators from InvestingPro, the stock’s RSI suggests it is in overbought territory, which investors may want to consider in their analysis.

The company did not specify which subsidiary is being considered for listing or which foreign exchange is targeted for the potential listing.

In other recent news, China Yuchai International Limited reported a 52.2% increase in first-half profit, significantly outperforming China’s commercial vehicle market. This notable profit growth is attributed to strong engine sales. Additionally, China Yuchai’s joint venture, MTU Yuchai Power Co., Ltd., has successfully delivered its first batch of mtu Series 2000 engines to customers. These engines are manufactured at the company’s Suzhou plant, marking an expansion in their product line. Furthermore, China Yuchai has commenced the shipment of high-end cylinder head castings to a German customer. This shipment is part of a larger order for 30,000 castings, facilitated by the company’s subsidiary, Guangxi Yuchai Foundry Co., Ltd. These developments highlight the company’s ongoing efforts to enhance its product offerings and expand its market reach.

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