15 years of listing revenue rose more than 25 times, Weichai Power 2.2 billion cash dividends to investors

15 years ago, Weichai Power successfully listed on the H-share market and became the first internal combustion engine company in mainland China to land in the Hong Kong capital market. On March 26, 2019, the 15th anniversary of the listing of Weichai Power was held in Hong Kong. Before this day, Weichai Power disclosed its 2018 results: the company achieved operating income of 159.256 billion yuan last year, an increase of 5.1% over the same period. Weichai Power, which has regressed to just 15 years ago, achieved operating revenue of only 6.188 billion yuan in 2004. In 15 years, operating income has increased more than 25 times. The company's profitability also increased significantly. In 2018, the net profit attributable to shareholders of listed companies was 8.658 billion yuan, up 27.2% year-on-year, compared with 537 million yuan 15 years ago, an increase of more than 16 times.

Weichai Power successfully listed on H shares Weichai Power successfully listed on H shares

At the same time of disclosing last year's results, Weichai Power also announced the 2018 dividend plan. Based on the total share capital of 793,387,390 shares, it plans to distribute a cash dividend of RMB 2.80 (including tax) to every 10 shares of all shareholders, and not convert it into a public reserve fund. . Based on this calculation, Weichai Power will use more than 2.2 billion in cash for dividends.

Commercial vehicle diesel engine leader has a clear position

Since its successful listing in Hong Kong 15 years ago, Weichai Power has been adhering to the two-wheel drive operation strategy of product management and capital operation, and is committed to building products with the highest quality, technology and cost. In 2005, Weichai Power acquired the Hunan Torch Automobile Group and built a heavy truck gold industry chain (Weichai Engine + Fast Transmission + Hande Axle + Shaanxi Automobile Heavy Truck), and then merged and absorbed the Hunan Torch through the share swap. The return of shares to A shares has created a “cemberwood model” in the capital market. Through years of "the heart is nowhere to attack the main business", Weichai Power has successfully built a coordinated development pattern of powertrain (engine, gearbox, axle), vehicle complete machine, intelligent logistics and other industrial sectors.

Weichai Group Weichai Group

In the past 2018, Weichai’s “heavy-card gold industry chain” also produced a brilliant transcript.

According to the annual report data, due to the rapid development of domestic logistics and transportation, the promotion of national infrastructure investment, and the multiple favorable factors such as the upgrading of emission standards and the blue sky defense war, the heavy truck market maintained a high level of operation, with a total sales of 1.148 million units, an increase of 2.8%. During the reporting period, the company sold a total of 363,000 heavy-duty truck engines, which was basically flat year-on-year, with a market share of 31.6%. It continued to maintain its leading position in the industry; Shaanxi Heavy Vehicle Co., Ltd., a controlled subsidiary of the company, sold a total of 153,000 heavy trucks throughout the year. The growth rate was 2.7%, the market share was 13.3%, ranking first in the domestic heavy truck enterprises, and the competitiveness continued to increase. The controlling subsidiary Shaanxi Fast Gear Co., Ltd. sold a total of 909,000 transmissions, an increase of 8.9% year-on-year. The heavy-duty truck has sold 869,000 units of gearboxes, with a market share of approximately 75.7%, and continues to maintain its absolute leading position in the industry.

Specific to the engine, in 2018, Weichai Power sold a total of 220,000 12L and 13L engines, an increase of 1.6% year-on-year. The dominant position in the heavy truck, 3 tons and above loaders and the passenger car market of 11 meters or more is still stable. At the same time, sales of strategic products and strategic markets increased significantly. Yangchai engine sales amounted to 118,000 units, up 16.1% year-on-year; WP9H/WP10H engine sales reached 58,000 units, up 100.1% year-on-year; agricultural equipment engines sold 42,000 units, up 49.1% year-on-year %; forklift engine sales of 0.4 million units, an increase of 18.7%. Dongxing Securities quoted the data analysis of China Internal Combustion Engine Association as saying that the sales growth of diesel engine of Weichai commercial vehicle far exceeds the market, and the market share has increased to 18.06%.

Weichai engine cold zone test Weichai engine cold zone test

Deeply ploughing the "One Belt, One Road" overseas business

In addition to the layout of the gold powertrain, Weichai Power has been adhering to the international development strategy for many years, and has created a coordinated industrial layout around the world. Especially since 2009, Weichai has acquired the French Baudouan engine company and strategy. Restructuring luxury yacht manufacturer Italy Ferretti, strategic cooperation with industrial forklift and service provider Germany KION Group, acquiring German Linde Hydraulics and achieving localization, supporting KION Group to acquire automated logistics provider Dematek, strategic investment Alternative fuel power system provider PSI USA, solid oxide fuel cell supplier UK Sirius Power Holdings Co., Ltd. and hydrogen fuel cell supplier Canada Ballard Power System Co., Ltd. have achieved strategic and global coverage and balanced development.

According to the annual report, in 2018, Weichai’s overseas business is also very eye-catching. The company's overseas holding subsidiary, KION, is the world's second-largest forklift and service provider in Europe, and the world's number one supply chain solution provider. Last year, it achieved sales revenue of 8 billion euros, a year-on-year increase of 5.2%. The company's key R&D projects such as retarder and 8AT have been smoothly promoted, and the joint venture project of Sino-foreign joint venture high-tech enterprise jointly established with Eaton Company of the United States has been successfully implemented, and the internationalization layout has taken another important step.

Weichai layout international development market Weichai layout international market

At the same time, Weichai Power has been deeply cultivating the “Belt and Road” and its overseas business has developed steadily. The Weichai Maz project, which has attracted the attention of the leaders of China and Belarus, was put into operation in November 2018. It was built in the same year and put into operation in the same year. It was the first company in Zhongbai “Jushi” Industrial Park to start construction and put into production that year; Signed a strategic cooperation framework agreement with the Russian Kamas Group, and will gradually realize the localized manufacturing and sales of Weichai engines in the future.

In addition to going out, please come in, especially in the integration of new energy resources, Weichai Power takes the lead in the national fuel cell industrialization major project, in 2018, has been with the British Sirius Power Holdings Co., Ltd. (CeresPowerHoldingsplc.), Canada Ballard Power Systems Inc. (Callard Power Systems Inc.) carries out strategic cooperation and continuously promotes the industrialization of new energy. Among them, Weichai Ballard and Ballard of Canada will jointly develop next-generation proton exchange membrane fuel cell stacks and applications. The next-generation proton exchange membrane fuel cell module for passenger cars, commercial trucks and forklifts will strongly promote the high-end upgrade of new energy vehicles. At the same time, the company also established a new science and technology research institute, intelligent technology company, integrated new energy, electronic control, intelligent driving and other resources, set up a new platform and ecology of new business.

Reading volume: Source: Securities Daily Author: Cold autumn

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