- China Yuchai's valuation discount to peers is justified to a certain extent, considering geographic concentration risks and a lack of focus on specific products or end-markets.
- COVID-19 has had a negative impact on China Yuchai's export sales this year, but the company's long-term strategy of expanding export sales by exploring new markets remains unchanged.
- Investors will likely view China Yuchai as a proxy for the growth in demand for HDT truck engines in China over time, thanks to the implementation of the new emissions standard.
For further details see:
China Yuchai International: Leading Chinese Engine Manufacturer