Back in 2008 I owned shares. Thought this company would be a real keeper.. But meager or no dividends in those early years was so disappointing that I sold and never looked back. But, having read positive messages from this board and after a review of cyd's recent dividend history, my faith in this company is restored. Will be back when the global markets normalize again.
it will be a few days before the exhaustion kicks in. right now they're busy...as the "smart money" has to liquidate good stuff to cover margin calls on the bad stuff they bought. the only thing liquid with this bunch is the stuff they are sucking through their straws. what an over-rated group of people. but we'll need them to run the stock up when the time comes....
Unless I am mistaken CYD is trading at 3x Net Income?? Either this is the steal of the decade or my numbers are way off.
"smart money" is #$%$ all over themselves because China didn't lower interest rates. It's amazing what a mess these people make. China is the only county with any ammo left to fight this self-inflected meltdown. Screaming buy once the smoke settles. For now... might as well go to the beach and wait until the "smart money" passes out from exhaustion.
I agree Fosun is a positive and indicates good value, but where is the unit volume growth going to come from? It was not so long ago that Yuchai group was predicting 1 million units by 2018, and they seem to have gone quiet on that. in 2013 unit volume briefly rebounded to 500,000 but has fallen since then. We have not come close to the 2010 high of 551,000. That figure was achieved with major stimulus post credit crunch.
How are we likely to get back towards the high of 2010 or better? I would love to hear Fosun's view of that.
By the way, I thought you were looking to exit this stock?
This has always been the rumor. With Fosun now on board and adding I can no longer believe it. The stock has stood firm as the market collapsed over the last 2 days. I agree with shuf. Time to buy more. will wait to see what the authorities in China do on Sunday night.
I would expect HLA to keep as quiet as possible and continue to up their percentage ownership in CYD.
I would expect Yuchai to crow in proportion to how the testing and development of their engine goes.
one would think... HLA would issue a press release touting this success... call trade publications... blow the horn so everyone could hear.
Article on where opposed piston diesels are headed and when.
"Fuel Smarts: Opposed-Piston Diesels About Five Years Away"
Chinabuses calls the new Yuchai opposed diesel---- opposed-piston ----- which could be a big deal if it were, in fact, an independently developed OPOC. Time will tell.
chinabuses-org................ On July 28, China’s first opposed-piston diesel engine independently developed by Yuchai was successfully launched at the headquarters of Yuchai. Yan Ping, president of Yuchai and a number of distinguished guests all witnessed the historical moment.
Meanwhile... while the "smart money" runs for the hills because they are still mad that the yuan depreciation happened while they're on summer vacation in the Hamptons... this article was posted on Bloomberg yesterday. excerpt ---- Angola will export the most crude in almost four years in October as the OPEC member satisfies Asian demand and offsets diminished revenue from lower oil prices.
Africa’s second-largest producer plans to ship 1.83 million barrels a day in October, the most since November 2011, according to a preliminary loading program obtained by Bloomberg. This compares with 1.77 million barrels a day in September.
Angola slashed its budget by a quarter in response to the slump in crude prices, which have lost more than 50 percent in the past year. The African nation’s bid to recapture revenues is supported by demand in China, the world’s second-biggest oil-consumer, which imported near-record levels of crude in July.
“Angola continues to profit mainly from Chinese demand, in addition to some demand from India and Indonesia,” said Ehsan Ul-Haq, an analyst at KBC Economics in London. ----
The increase in Sales of Euro 1V and V engines over last year presumably includes volume replacing discontinued Euro 3 production, so the 60% increase is probably from a low base.
It is good news they are achieving higher margins on the Euro 1V engines but we need to see growth in unit volume sales year over year. Unless there is a cyclical upturn or perhaps some subsidy I struggle to see where the unit volume growth will come from?
Opposed cylinder engines have been around for over 100 years. These "boxer" engines can have some advantages for certain uses. Opposed cylinder/piston engines or OPOC engines are quite new.....these can have huge advantages if all the bugs can be worked out. Ecomotors has their OPOC engine, and I believe I saw they visited Yuchai about a month ago. What the nature of Yuchai's "opposed diesel" is remains very unclear. DARPA, Vinod, Bill Gates, etc have all been pumping money into OPOC engine development. Ecomotors was supposed to have a 150,000 unit OPOC diesel engine plant running last year in China....but I have not heard anything more about it.
What is an opposed cylinder engine? There is an article describing the elimination of engine body and engine lid (cover) and thus a huge reduction in difficult spots in maintenance and repair. Another first in China by our beloved China Yuchai. Hopes it translates into sales and $ (and soon).
Also, in the article it says: From January to July, production and sales of Euro IV and Euro V engines of Yuchai increased by more than 60%, compared to the same period last year. Could this be true? That means they are doing very well on the highly profitable engines in the last 2 months.
2015 Diesel engine sales is smaller in China, but Yuchai gains market share by 1%.
Another tidbit: the article says Yuchai built an industrial "city" (I think it meant an industrial "Park") with huge investment. Now there are 6 outside companies have entered the "city" to produce complementary parts for vehecles (like steering systems, crankshaft, ..etc)
I have a feeling 3Q is going to be good. Time to buy more CYD. Good luck to you longs.