Weichai Heavy Machinery Co Ltd
Weichai Heavy Machinery Co Ltd operates in the Industrial Machinery & Equipment industry, generating revenue through the manufacturing and sale of industrial machinery.
Business. Weichai Heavy Machinery Co Ltd (000880.SZ) is a Chinese industrial machinery and equipment manufacturer listed on the Shenzhen Stock Exchange. The company operates within the Industrial Goods sector, focusing on the production and sale of industrial machinery. Specific details regarding its operating segments and geographic revenue mix are not available.
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
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Synthesis
Weichai Heavy Machinery Co Ltd (000880.SZ) is a Chinese industrial machinery and equipment manufacturer listed on the Shenzhen Stock Exchange. The company operates within the Industrial Goods sector, focusing on the production and sale of industrial machinery. Specific details regarding its operating segments and geographic revenue mix are not available.
Weichai Heavy Machinery maintains a capital structure characterized by low leverage, with a debt-to-equity ratio of 0.10 and long-term debt of CNY 212.2 million against total equity of CNY 2.1 billion. The company holds a current ratio of 0.96, indicating near-parity between current assets and liabilities, while operating cash flow of CNY 709.3 million significantly exceeds free cash flow of CNY 263.7 million due to capital expenditures of CNY 16.6 million. Despite generating positive operating cash flow, the company reports negative net cash after subtracting total debt, a key liquidity flag that suggests reliance on operational cash generation to service obligations.
Profitability metrics reveal modest returns, with a return on equity (ROE) of 7.22% and a return on assets (ROA) of 1.82%. The company achieved a net income of CNY 240.1 million on revenue of CNY 6.12 billion, resulting in a net margin of approximately 3.9%. Gross profit stands at CNY 628.4 million, yielding a gross margin of roughly 10.3%, while operating income is CNY 243.8 million. These returns are evaluated against the backdrop of a high valuation multiple, with a price-to-earnings ratio of 69.36 and an EV/EBITDA of 67.18, suggesting the market prices in significant future growth or asset revaluation potential despite current modest profitability.
- The company trades at a high valuation multiple (P/E 69.36, P/B 5.01) despite modest current returns (ROE 7.22%, ROA 1.82%).
- Liquidity is tight with a current ratio of 0.96 and negative net cash after debt, though operating cash flow remains strong at CNY 709.3 million.
- Leverage is low with a debt-to-equity ratio of 0.10, providing a buffer against interest rate risks.
- Dilution risk is low, with no difference between basic and diluted share counts.
- Historical growth data is absent, preventing trend analysis and momentum assessment.
Bull / Bear case
Generated · model-assistedFree cash flow grew 9.7% year-over-year, indicating strong operational cash generation despite recent revenue declines.
Cash conversion ratio of 1.19 outperforms the 0.95 cohort median, highlighting effective working capital management.
Debt-to-equity ratio of 0.1 is half the industry median, providing a conservative balance sheet with low leverage risk.
Capex intensity is in the top quartile of peers, suggesting strategic investment in future growth capabilities.
Net margin of 3.5% is below the 4.9% cohort median, suggesting limited pricing power or cost control issues.
Medium liquidity risk flags potential challenges in meeting short-term obligations despite low credit risk.
In focus — financials by report
Revenue ¥3.41B; Operating income ¥134.3M.
- ▍Revenue ¥3.41B
- ▍Operating income ¥134.3M
- ▍Net margin 4.0%
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- Net cash is negative after subtracting total debt.
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- Weichai Heavy Machinery Co Ltd Market data — financials · 2026-07-09