Weichai Power: Common-rail engines significantly increase company profitability


In the first three quarters of this year, Weichai Power achieved EPS2.86, which exceeded expectations. In the first three quarters of this year, Weichai Power achieved an EPS of RMB2.86, and in particular, Weichai Power's earnings in the third quarter reached a record high of RMB 1.39, far exceeding the previous profit forecast of around RMB 1.2. The most important reason for Weichai Power's profit exceeding expectations was that the gross profit margin of Weichai Power's main business reached 27.34% in the third quarter, which was a significant increase of 4.62 percentage points from the previous quarter.

The promotion of common rail products has improved the profitability of Weichai Power Products. The quarter-to-quarter increase in the sales of common rail products accounted for the fundamental reason that Weifang Diesel's gross profit margin rose quarter by quarter in 2009. It is expected that the sales of common-rail engines will account for 70% of the sales of automotive engines in the 3rd quarter, and the unit price of heavy-duty engines will have been increased from about 42,000 yuan last year to about 54,000 yuan. The promotion of common-rail engines is to Weichai Power. The effect of improving profitability is very obvious.

Heavy truck sales continued to recover. From the sales of the heavy truck industry in recent months, the sales of semi-trailers have accounted for more than 41% of monthly sales of heavy trucks since July, and domestic logistics has apparently recovered. As the start of domestic real estate development continues to improve, the recovery of 4Q09 heavy truck sales will continue.



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