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Russell 2000 Futures
China Yuchai International Limited (CYD)
NYSE - NYSE Delayed Price. Currency in USD
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674 reactions on $CYD conversation
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After owning CYD for almost 20 years, I am selling on the next uptick. The last of any Chinese stocks I own, I just feel like there are no controls over there and more a gamble, not investing. Maybe I will take the CYD sell money and just go to Vegas.
According to the annual report, CYD generated $228 million in cash flow in 2020. Given the current market value of $648 million, the company is selling at 3 times cash flow or a 35% cash on cash return. Why so cheap? Three reasons: 1) nobody can buy the company unless HLA and the City of Yulin want to sell. 2) It is a partially owned state enterprise which means the Chinese government has the ultimate power. 3) investors believe that it is a cyclical business and is under pressure from electrical vehicles, thus, the cash flow level is not sustainable.
Reasons 1 and 2 won't change but 3 has a good chance of being wrong. The Chinese economy is in decent shape and growing, the company is addressing the electric vehicle market thru joint ventures and increased R&D. If the dividend remains at or above the current $1.70, the value of the company will increase significantly in the eyes of the investor community.
@msail the dividend and volatility
First, been reading here for a while and Msail I enjoy your insights! On the topic of CYD behavior there is probably a more simple explanation. Capital controls are definitely loosening especially in manufacturing and materials sectors, and it's my opinion companies are being allowed to return more to investors than before. No better use at the time because they have plenty of manufacturing capacity and no acquisitions needed to continue to grow. So next logical thing in my mind would be dividends. 1.70 is roughly 70%, which a new CFO wouldn't immediately do to his brand new balance sheet unless they are trying to move in a big way.
If even some of this is the case, next year's dividend could be much larger. The Chinese press is saying that Yuchai sales are up HUGE year over year. If I had to guess, maybe CYD earns $4 this year. Give me 70% of that next year!
Why does it take so long for this stock to respond to dividend news?
is Stock dive in pre market the dividend or is it giving back last weeks gains
Why did the dividend increase from $.85 to $1.70 per share with no improvement in operating and reported earnings? CYD is paying out an extra $38million in cash. While the company only reports to their shareholders twice a year and is very tight lipped about the information they share, perhaps we can make some guesses at to why and more important, is it a sustainable situation that will allow the share price to reflect the new dividend rate.
First thought. CYD capitalizes development expenses of new engines, in this case the NAV 6. Over the past few years these cash outlays have reached $169 million US at the end of 2020. Now that the engines are being sold, the expense will appear on the income statement as a cost; however, this expense does not involve an expenditure of cash as that has already happened. Consequently, cash will not be affected while reported earnings will decline.
Second, The NAV start up costs of production , including learning curves and lack of economies of scale, are behind it. Gross margins have suffered and may continue to do so but probably not as much as in 2020.
Third, net cash is $650million or about $15 per share. The "extra" dividend of $.85 costs $38million or about 5% of the net cash horde.
Fourth, maybe the new CFO had something to do with changing CYD's thinking. Amore likely possibility is that with the departure of Yang Ping and the old CFO things got a fresh look about the amount of cash they needed to keep around.
Fifth, never discount greed even in a communist society. The stock options have a strike price of $21.11 and expire in July, 2024. Maybe this is their way of getting the stock price moving.
Bottom line, this might be a whole new way of thinking for them.
$4 pop for 1.7 divi…. How much will it drop ex-div? Thinking it’ll hold 17..
Dividend came yesterday.
Anyone care to predict where revenues, earnings and share price will go over the next 6-12 months?
1.70 dividend and 17 stock price is not normal. This is a Chinese company and there is no doubt that a lot of uncertainty is there. This stock is definitely underpriced in terms of PE or yield and this price reflects a lot of uncertainties. What is China economy after decoupling with US? What is the future of this stock listing? I own 7K shares and will hold for a while to see what happens.
Price is back to where it was before the dividend was announced. No surprise.
Just bought some shares 2 days ago anticipating dividends. Thanks Yuchai!
Electric buses? Isn’t that what everyone has been wanting the last few years? Yet...
Have they set a date for annual meeting ? I do not remember receiving any mail with the mail in proxy votes.
On April 28, Yuchai International(CYD) wholly-owned subsidiary Yuchai New Energy Automobile Company's new product launch conference was held in Chengdu. At the event site, Yuchai New Energy Automobile Company delivered 100 pure electric refrigerated trucks to the Ruibai Express Network freight platform, marking the official entry of Yuchai New Energy Automobile into the Sichuan-Chongqing market.
It is reported that since its establishment in 2017, Yuchai New Energy Automobile Company has insisted on independent research and development, design, and manufacturing of new energy logistics vehicles. In 2020, it has launched two "Yutong" brand general cargo logistics vehicles and "Yitu" brand refrigerated logistics vehicles. A series of pure electric light trucks.
From 2021 to 2022, Yuchai New Energy Automobile Company will increase the research and development of new products such as closed logistics vehicles, medium-duty coach vehicles, and sanitation vehicles to promote the company's overall development in the field of new energy commercial vehicles. ******
Dividend will come. CYD operates in an alternate universe.
Shouldn't the first quarter earnings have been announced before now?
When is the dividend coming ?
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