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March 7 - China Yuchai International Limited (CYD, Financial) has emerged as a leader while grabbing a dominant position in China's heavy machinery and transportation segments through strong yearly performance. The engine manufacturer reported a 6% revenue growth and a 13% increase in engine sales during 2024 financial results. The manufacturer specializes in commercial transportation and industrial equipment production with natural gas and diesel engines. The firm credits higher demand for trucks, buses, and power-generation equipment for its improved performance.
The stock price has increased massively since January and is currently up 114% YTD. It currently stands at $22. This strong performance is driven by industry progress coupled with solid market segment sales.
Shareholders remain focused on the dividend policy implemented by the company. The dividend payout strategy has achieved an A+ rating stemming from its four-year average yield of 6.40%. This rating exceeds sector competitors in a substantial way. The trailing-twelve-month yield stands at 1.91%, continuing at 21% above sector results. The company sets its annual dividend at $0.38 as a mechanism to balance profitability against competitiveness and sustainable business operations.
Moreover, Research analysts of Wall street have issued an "outperform" rating because of their increasing belief in its strategic framework.
Note: This article is based on my own research
This article first appeared on GuruFocus.