Surprising Stock: China Yuchai International Limited (NYSE: CYD)

On Thursday, China Yuchai International Limited (NYSE: CYD) shares price traded between $14.03 and $14.44 during the last trading session downbeat with -1.67% at $14.12. The shares recorded a trading volume 39,122 shares as compared to its average volume of 41,898 shares. The company has 38.69M shares outstanding and market value of 576.919M . Over the one year trading period, the stock has a peak price of $21.28 and its down is recorded at $12.00. The short ratio in the CYD stock is 1.97 and the short float is around of 0.49%.

China Yuchai International Limited (NYSE: CYD), reported recently its unaudited consolidated financial results for the first quarter ended March 31, 2019.

Net revenue for the first quarter of 2019 reduced by 4.0% to RMB 4.2B (US$ 618.3M) contrast with RMB 4.3B in the first quarter of 2018.

Gross profit was RMB 761.3M (US$ 113.1M) contrast with RMB 853.5M in the first quarter of 2018. Gross margin reduced to 18.3% from 19.7% in the first quarter of 2018.

Other operating income reduced by 13.0% to RMB 43.9M (US$ 6.5M) from RMB 50.5M in the first quarter of 2018. The decrease was mainly Because of a lower government grant by RMB 5.2M in the first quarter of 2019.

Research and development (R&D) expenses reduced by 40.1% to RMB 71.9M (US$ 10.7M) contrast with RMB 119.9M in the first quarter of 2018.  In the first quarter of 2019, the R&D capitalization amount was RMB 47.6M (US$ 7.1M). In the first quarter of 2019, the total R&D expenditure, including capitalized costs, was RMB 119.5M (US$ 17.7M) and it represented 2.9% of the net revenue.  In the first quarter of 2018, the total R&D expenditure was RMB 119.9M, representing a 2.8% of the net revenue.

Selling, general & administrative (SG&A) expenses increased by 4.5% to RMB 376.1M (US$ 55.9M) contrast with RMB 359.9M in the first quarter of 2018.  SG&A expenses represented 9.0% of net revenue contrast with 8.3% in the first quarter of 2018.

Operating profit was RMB 357.3M (US$ 53.1M) contrast with RMB 424.2M in the first quarter of 2018. The operating margin reduced to 8.6% from 9.8% in the same quarter last year.

Finance costs increased by 12.3% to RMB 25.3M (US$ 3.8M) contrast with RMB 22.5M in the first quarter of 2018. Higher finance costs resulted mainly from a non-recurring government interest expense grant of RMB 4.2M in first quarter of 2018, which was partially offset by lower bills discounting in first quarter of 2019.

Net earnings attributable to China Yuchai’s shareholders was RMB 198.0M (US$ 29.4M) contrast with RMB 242.8M in the same quarter last year.

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