# Weichai Power (000338.SHE)

Canonical: https://gigainvestors.com/s/000338.SHE

Analysis as of: 2026-10-16T07:34:25.267Z. Financial observations: FY2002–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 21.28 per share; close as of 2026-10-15.

Estimated value: low CNY 26.76 per share, central CNY 29.32 per share, high CNY 32.73 per share. Buy at or below the central value CNY 29.32 per share. Valuation as of 2026-10-16T07:34:25.267Z; scenarios are not confidence intervals.

Expected annual return: 14.5% at the stated quote. About 14.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.07×

- FY2018: 0.09×

- FY2019: 0.08×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.03×

- FY2023: 0.06×

- FY2024: 0.08×

- FY2025: 0.06×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 15.6%

- ROIC, second-lowest year: 12.2%

- Typical minus recent gross margin: 0.6 pp

- Typical gross margin (annual median): 20.8%

- Recent gross margin (lower of latest and 3-year median): 20.2%

- Years with nonpositive capital: 4

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 39.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.5%

- FY2017: >100%

- FY2018: 79.5%

- FY2019: >100%

- FY2020: 13.0%

- FY2021: 12.2%

- FY2022: >100%

- FY2023: 9.8%

- FY2024: 13.2%

- FY2025: 14.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.37×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 63B

- Net income, five-year total: CNY 46B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -8.7 pp

- Working capital / revenue, final three-year average: 2.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.41×

- FY2022: 1.62×

- FY2023: 1.34×

- FY2024: 1.19×

- FY2025: 1.42×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 79.5% vs 13.2%

- Per-share earnings: 0.32 to 1.25 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.8%

- Ordinary dilution, 5-year annual growth: 2.3%

- Market cap gain: CNY 113B

- Cumulative retained earnings: CNY 36B

- Diluted shares, 10-year annual growth: 1.8%

- Diluted shares, 5-year annual growth: 2.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.4%

- Per-share value change: CNY 0.93

- Per-share value, starting three-year median: CNY 0.32

- Per-share value, ending three-year median: CNY 1.25

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 0.6%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 32B

- Cumulative net income, 10 years: CNY 82B

- ROIC, first three-year median: 79.5%

- ROIC, last three-year median: 13.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.32

- FY2017: CNY 0.84

- FY2018: CNY 0.97

- FY2019: CNY 1.13

- FY2020: CNY 1.18

- FY2021: CNY 1.11

- FY2022: CNY 0.57

- FY2023: CNY 1.04

- FY2024: CNY 1.31

- FY2025: CNY 1.25

### accounting: pass

- Sloan accruals: -4.9%

- Receivables to sales index (DSRI): 1.21×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.51×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -5.0%

- FY2018: -6.5%

- FY2019: -6.2%

- FY2020: -5.1%

- FY2021: -1.8%

- FY2022: 2.5%

- FY2023: -5.5%

- FY2024: -4.3%

- FY2025: -4.9%

## Holders

## Price story

Down 40% since May 2026 · sales +7.3%

Story as of 2026-10-16T10:00:00.550Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.1% a year for ten years

### Sales · FY2024–2025

sales +7.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 93B 

- FY2017: CNY 152B 

- FY2018: CNY 159B 

- FY2019: CNY 174B 

- FY2020: CNY 197B 

- FY2021: CNY 220B 

- FY2022: CNY 175B 

- FY2023: CNY 214B 

- FY2024: CNY 216B 

- FY2025: CNY 232B 

### Gross margin · FY2025

gross margin 20.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.0% 

- FY2017: 21.4% 

- FY2018: 22.0% 

- FY2019: 21.6% 

- FY2020: 19.2% 

- FY2021: 18.6% 

- FY2022: 17.5% 

- FY2023: 19.9% 

- FY2024: 21.9% 

- FY2025: 20.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto manufacturers; annual sales are CNY 231.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2025: revenue 231542020000; grossProfit 46735687000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000338.SHE: Weichai Power Co., Ltd. engages in the automobile and equipment manufacturing industry in China and internationally. The company operates through the Engines, Automobiles and Auto Parts, Agricultural Equipment, and Intelligent Logistics segments. It offers engines for trucks, buses, construction machinery, and agricultural tractors and harvesters; energy and power solutions, including generator sets and industrial power products; transmission, PTO, and auto transmission products; axles for trucks, buses, and construction machineries; and hydraulics comprising variable displacement pumps, VT modular valves, electronic units, and excavator and agriculture machine powertrain systems. The company also provides new energy products, such as pure electric drive, pure electric gearbox power, electric drive axle power, hybrid power, power battery, and range-extender systems; commercial vehicles and auto parts; and after-market products, which include parts, oil, and remanufacture. In addition, it engages in forklift production, warehouse technology, and supply chain solution services, as well as industrial truck and services materials handling. The company offers its products under the Weichai Power Engine, Fast Gear Transmission, Hande Axle, Shaanxi Automobile Heavy Truck, and Weichai Lovol Smart Agriculture brands. Weichai Power Co., Ltd. was incorporated in 2002 and is based in Weifang, the People's Republic of China.

### Why customers stay

Margins ranged from 19.9% to 21.9% during 2023–25; it earns 15.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2023: grossProfit / revenue = 19.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2024: grossProfit / revenue = 21.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2025: grossProfit / revenue = 20.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); 10-year return on capital observations [[2016,0.1650857082803545],[2017,1.779637872800184],[2018,0.7950168050940576],[2019,15.454451189738288],[2020,0.13032958767352487],[2021,0.12239036021453976],[2022,1.2576242145935315],[2023,0.09782591105380901],[2024,0.13191029393569106],[2025,0.14767496177724015]]; median 0.15638033502879733. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 783.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2016: growth capex 0; upkeep 4459699581.12; owner earnings 3921114341.88. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2017: growth capex 0; upkeep 2541669616.96; owner earnings 11432129276.04. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2018: growth capex 0; upkeep 3683603315.61; owner earnings 12310671471.39. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2019: growth capex 0; upkeep 5393918354.54; owner earnings 11718578770.46. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2020: growth capex 0; upkeep 5765622633.58; owner earnings 12249834474.42. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2021: growth capex 0; upkeep 6011074100.21; owner earnings 13383033206.324. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2022: growth capex 0; upkeep 6635161342.42; owner earnings 7964597489.327587. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2023: growth capex 0; upkeep 7199786770.99; owner earnings 12102300625.555546. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2024: growth capex 0; upkeep 7359810000; owner earnings 13611865865.467592. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2025: growth capex 0; upkeep 6796720000; owner earnings 15510449713.81905. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); Dividend observations: [[2016,1858310188.47],[2017,3048202044],[2018,4193097863.09],[2019,3411565774],[2020,2269087933],[2021,5059765894],[2022,4394323412],[2023,4753305298.89],[2024,7232192000],[2025,6088689000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); FY2025: cash repurchases 783619000 CNY.

### Are managers owners

Insiders own 30.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000338.SHE SharesStats.PercentInsiders = 30.525000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.1% yearly over ten years; actual growth was 18.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.267Z); Ten-year compound average after fade. Initial solved rate -0.08467779754691002. Price 21.28; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3201566527884917 → FY2025 1.7724220849751817. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 4.78 per share

- 2016-11: CNY 5.10 per share

- 2016-12: CNY 4.98 per share

- 2017-01: CNY 5.56 per share

- 2017-02: CNY 5.64 per share

- 2017-03: CNY 5.63 per share

- 2017-04: CNY 5.61 per share

- 2017-05: CNY 5.58 per share

- 2017-06: CNY 6.60 per share

- 2017-07: CNY 7.01 per share

- 2017-08: CNY 7.20 per share

- 2017-09: CNY 7.49 per share

- 2017-10: CNY 8.35 per share

- 2017-11: CNY 8.14 per share

- 2017-12: CNY 8.34 per share

- 2018-01: CNY 8.78 per share

- 2018-02: CNY 8.50 per share

- 2018-03: CNY 8.26 per share

- 2018-04: CNY 8.27 per share

- 2018-05: CNY 8.73 per share

- 2018-06: CNY 8.75 per share

- 2018-07: CNY 8.53 per share

- 2018-08: CNY 8.00 per share

- 2018-09: CNY 8.55 per share

- 2018-10: CNY 7.45 per share

- 2018-11: CNY 7.52 per share

- 2018-12: CNY 7.70 per share

- 2019-01: CNY 8.85 per share

- 2019-02: CNY 9.56 per share

- 2019-03: CNY 11.85 per share

- 2019-04: CNY 12.35 per share

- 2019-05: CNY 11.70 per share

- 2019-06: CNY 12.29 per share

- 2019-07: CNY 12.17 per share

- 2019-08: CNY 11.58 per share

- 2019-09: CNY 11.22 per share

- 2019-10: CNY 11.56 per share

- 2019-11: CNY 13.19 per share

- 2019-12: CNY 15.88 per share

- 2020-01: CNY 13.55 per share

- 2020-02: CNY 14.33 per share

- 2020-03: CNY 11.96 per share

- 2020-04: CNY 13.41 per share

- 2020-05: CNY 13.08 per share

- 2020-06: CNY 13.72 per share

- 2020-07: CNY 16.19 per share

- 2020-08: CNY 14.81 per share

- 2020-09: CNY 15.05 per share

- 2020-10: CNY 15.11 per share

- 2020-11: CNY 16.69 per share

- 2020-12: CNY 15.79 per share

- 2021-01: CNY 21.14 per share

- 2021-02: CNY 22.05 per share

- 2021-03: CNY 19.24 per share

- 2021-04: CNY 18.11 per share

- 2021-05: CNY 17.81 per share

- 2021-06: CNY 17.87 per share

- 2021-07: CNY 17.12 per share

- 2021-08: CNY 20.07 per share

- 2021-09: CNY 17.16 per share

- 2021-10: CNY 15.10 per share

- 2021-11: CNY 15.43 per share

- 2021-12: CNY 17.89 per share

- 2022-01: CNY 15.50 per share

- 2022-02: CNY 15.16 per share

- 2022-03: CNY 13.35 per share

- 2022-04: CNY 11.19 per share

- 2022-05: CNY 12.11 per share

- 2022-06: CNY 12.47 per share

- 2022-07: CNY 11.97 per share

- 2022-08: CNY 11.63 per share

- 2022-09: CNY 9.62 per share

- 2022-10: CNY 9.08 per share

- 2022-11: CNY 10.73 per share

- 2022-12: CNY 10.18 per share

- 2023-01: CNY 11.21 per share

- 2023-02: CNY 12.44 per share

- 2023-03: CNY 12.61 per share

- 2023-04: CNY 11.52 per share

- 2023-05: CNY 11.56 per share

- 2023-06: CNY 12.46 per share

- 2023-07: CNY 13.20 per share

- 2023-08: CNY 11.80 per share

- 2023-09: CNY 12.53 per share

- 2023-10: CNY 13.88 per share

- 2023-11: CNY 14.90 per share

- 2023-12: CNY 13.65 per share

- 2024-01: CNY 14.77 per share

- 2024-02: CNY 16.88 per share

- 2024-03: CNY 16.69 per share

- 2024-04: CNY 17.39 per share

- 2024-05: CNY 15.91 per share

- 2024-06: CNY 16.24 per share

- 2024-07: CNY 13.80 per share

- 2024-08: CNY 12.96 per share

- 2024-09: CNY 15.87 per share

- 2024-10: CNY 13.35 per share

- 2024-11: CNY 13.42 per share

- 2024-12: CNY 13.70 per share

- 2025-01: CNY 14.40 per share

- 2025-02: CNY 15.69 per share

- 2025-03: CNY 16.41 per share

- 2025-04: CNY 15.20 per share

- 2025-05: CNY 15.04 per share

- 2025-06: CNY 15.38 per share

- 2025-07: CNY 15.13 per share

- 2025-08: CNY 15.14 per share

- 2025-09: CNY 14.02 per share

- 2025-10: CNY 14.96 per share

- 2025-11: CNY 17.31 per share

- 2025-12: CNY 17.20 per share

- 2026-01: CNY 23.74 per share

- 2026-02: CNY 27.86 per share

- 2026-03: CNY 24.24 per share

- 2026-04: CNY 31.20 per share

- 2026-05: CNY 35.34 per share

- 2026-06: CNY 27.25 per share

- 2026-07: CNY 27.95 per share

- 2026-08: CNY 27.17 per share

- 2026-09: CNY 25.10 per share

- 2026-10: CNY 23.41 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 9.68 per share, central CNY 10.55 per share, high CNY 11.70 per share

- FY2017: low CNY 21.75 per share, central CNY 29.27 per share, high CNY 33.65 per share

- FY2018: low CNY 21.26 per share, central CNY 28.49 per share, high CNY 32.70 per share

- FY2019: low CNY 22.10 per share, central CNY 24.29 per share, high CNY 27.21 per share

- FY2020: low CNY 28.85 per share, central CNY 33.39 per share, high CNY 37.59 per share

- FY2021: low CNY 28.37 per share, central CNY 30.97 per share, high CNY 34.43 per share

- FY2022: low CNY 21.88 per share, central CNY 23.80 per share, high CNY 26.35 per share

- FY2023: low CNY 29.46 per share, central CNY 36.41 per share, high CNY 41.07 per share

- FY2024: low CNY 24.13 per share, central CNY 26.39 per share, high CNY 29.41 per share

- FY2025: low CNY 24.78 per share, central CNY 27.20 per share, high CNY 30.43 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:07.257Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations