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Weichai Power Co (000338) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 239B CNY

WP Weichai Power Co 000338 · SHE
Price¥29.38
Fair Value¥24.74
Upside-15.8%
Quality57/100
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Healthy Growth
Thin margins · 4.8% net margin
Low debt · generates free cash flow
2.63% dividend yield
Mixed vs. peers (8/15)
Narrow moat 42/100
Evidence: Medium Range ¥17.74 – ¥31.74 Share as image

Fair value as of: Jul 13, 2026

From 26 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from ¥22.32 to ¥24.74 (+10.8%) since Jul 5, 2026. Share price −1.1% over the past month.

A solid business, but screening 16% overvalued on our models.

What matters now

  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from ¥17.74 (bear) to ¥31.74 (bull), base ¥24.74. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 57/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥35.34 ¥8.03 Fair Value ¥24.74 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range ¥8.03 – ¥35.34 · fair‑value band ¥17.74 – ¥31.74 · the ¥29.38 price screens above the ¥24.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Weichai Power Co (000338) currently trades at ¥29.38, while our model-based Fair Value estimate is ¥24.74, implying the stock looks roughly 15.8% overvalued today. We read business quality at 57/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Weichai Power Co generated revenue of 237B CNY at a net margin of 4.8%. Revenue grew 8.9% year over year. It earns a return on equity of 11.5%. Net debt stands at 28.2B CNY. Fundamentals as of Jul 13, 2026

Our scenario range runs from ¥17.74 (bear case) to ¥31.74 (bull case); at ¥29.38, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 121% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 25% fair-value upside, at -16%, 000338 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥49.89 ¥97.66 ¥177.87 80
Residual Income ¥10.10 ¥11.95 ¥23.73 76
Rev-Margin DCF ¥32.84 ¥51.09 ¥89.53 74
All 26 models by family
DCF Models
FCF DCF ¥52.58 ¥81.21 ¥174.81 38
Owner Earnings ¥39.97 ¥85.82 ¥186.37 31
5Y Revenue Exit ¥30.47 ¥45.34 ¥76.22 39
5Y EBITDA Exit ¥42.32 ¥69.31 ¥122.22 41
5Y P/E Exit ¥32.71 ¥60.24 ¥96.78 38
10Y Revenue Exit ¥36.43 ¥65.85 ¥82.27 36
10Y EBITDA Exit ¥45.99 ¥91.97 ¥171.05 37
10Y P/E Exit ¥38.82 ¥70.80 ¥121.13 35
Earnings-Based
Graham-Dodd ¥8.60 ¥59.97 ¥84.16 54
Lynch FV ¥30.98 ¥44.26 ¥57.54 50
PEG = 1.0 ¥30.98 ¥44.26 ¥57.54 46
EPV ¥19.38 ¥21.77 ¥23.89 59
Dividend Discount
Gordon GGM ¥6.78 ¥14.79 ¥24.89 70
DDM Multi-Stage ¥6.78 ¥12.12 ¥15.42 61
Multiples
P/E Multiple ¥18.97 ¥25.29 ¥31.61 63
P/S Multiple ¥16.12 ¥21.50 ¥26.87 58
P/B Multiple ¥16.12 ¥21.50 ¥26.87 55
EV/EBIT ¥28.07 ¥35.49 ¥42.90 53
EV/EBITDA ¥37.24 ¥47.70 ¥58.17 54
EV/Revenue ¥20.83 ¥27.25 ¥33.67 43
Asset-Based
NCAV (Graham) ¥5.39 ¥7.22 ¥10.78 50
Growth DCF
Growth DCF ¥49.89 ¥97.66 ¥177.87 80
Rev-Margin DCF ¥32.84 ¥51.09 ¥89.53 74
Economic Profit
Residual Income ¥10.10 ¥11.95 ¥23.73 76
ROIC Compounder ¥24.61 ¥36.92 ¥49.18 72
Growth Earnings
Growth-Adj P/E ¥39.92 ¥57.03 ¥74.14 68

Widest divergence: DCF Models (¥69.31) versus Asset-Based (¥7.22). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 237B CNY
Revenue growth (YoY) +8.9%
Net margin 4.8%
Return on equity 11.5%
Free cash flow 22.6B CNY FY2025
P/E ratio 21.0
More key figures
Operating margin 8.2%
EPS (TTM) ¥1.31
Dividend yield 2.6%
EPS growth (YoY) +16.1%
Net debt 28.2B CNY FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 55 · Market factors (momentum, volatility) 60

Profitability 34
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 18
Calm price path (market factor)
Momentum 75
Price trend over the last 3–12 months (market factor)
52W Momentum 85
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Weichai Power Co., Ltd. engages in the automobile and equipment manufacturing industry in China and internationally. The company operates through the Engines, Automobiles and Auto Parts, Agricultural Equipment, and Intelligent Logistics segments.

Full company description

Weichai Power Co., Ltd. engages in the automobile and equipment manufacturing industry in China and internationally. The company operates through the Engines, Automobiles and Auto Parts, Agricultural Equipment, and Intelligent Logistics segments. It offers engines for trucks, buses, construction machinery, and agricultural tractors and harvesters; energy and power solutions, including generator sets and industrial power products; transmission, PTO, and auto transmission products; axles for trucks, buses, and construction machineries; and hydraulics comprising variable displacement pumps, VT modular valves, electronic units, and excavator and agriculture machine powertrain systems. The company also provides new energy products, such as pure electric drive, pure electric gearbox power, electric drive axle power, hybrid power, power battery, and range-extender systems; commercial vehicles and auto parts; and after-market products, which include parts, oil, and remanufacture. In addition, it engages in forklift production, warehouse technology, and supply chain solution services, as well as industrial truck and services materials handling. The company offers its products under the Weichai Power Engine, Fast Gear Transmission, Hande Axle, Shaanxi Automobile Heavy Truck, and Weichai Lovol Smart Agriculture brands. Weichai Power Co., Ltd. was incorporated in 2002 and is based in Weifang, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Weichai Power Co reported revenue of ¥232B in FY2025 versus ¥220B in FY2021, a compound +1.3%/yr. Reported net income was ¥10.9B in FY2025, compounding +3.6%/yr from FY2021.

Growth Quality 65/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
232B CNY
Latest YoY
+7.3%
Avg. growth/yr (3Y)
+9.7%
Avg. growth/yr (5Y)
+3.3%
Avg. growth/yr (23Y)
+50.3%
Revenue +1.3%/yr
FY21 ¥220B
FY22 ¥175B
FY23 ¥214B
FY24 ¥216B
FY25 ¥232B
Net income +3.6%/yr
FY21 ¥9.5B
FY22 ¥4.9B
FY23 ¥9.0B
FY24 ¥11.4B
FY25 ¥10.9B

000338 screens 16% overvalued. Compare with Toyota Motor Corporation →

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Cite: Fair Value Calculator (2026). "Weichai Power Co Fair Value". https://www.fairvalue-calculator.com/stock/000338

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Auto Manufacturers · 119 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Top 25%
Fair Value upside −16% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 3% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 8% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 2.6% · Above median
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 21.0× · Pricier than median
P/B 2.56× · Pricier than median
P/S (TTM) 1.01× · Pricier than median
P/FCF 1.6× · Pricier than median
EV/EBITDA 6.6× · Cheaper than median
PEG 4.87× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 12 · sector 26
FUTURE 45 · sector 32
PAST 46 · sector 17
HEALTH 90 · sector 94
DIVIDEND 53 · sector 46

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $179.76 $224.63 +25%
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Volkswagen AG VOW 2,149 CZK 7,191 CZK +235%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%

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Frequently asked questions

Is Weichai Power Co (000338) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ¥24.74 versus a price of ¥29.38, about −16% (overvalued).
What is the fair value of 000338?
Our model-based fair value for Weichai Power Co is ¥24.74 (as of Jul 13, 2026), built from audited fundamentals. The current price is ¥29.38.
What is the quality score of 000338?
Weichai Power Co has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Weichai Power Co (000338)?
Weichai Power Co reported trailing-twelve-month revenue of about 237B CNY (latest available figure, as of Jul 13, 2026).
What is the net profit margin of 000338?
The net profit margin of Weichai Power Co is about 4.8%, meaning it keeps roughly 4.8% of revenue as net income. Based on the latest reported figures.
Does Weichai Power Co pay a dividend?
Weichai Power Co currently shows a dividend yield of about 2.17% relative to its recent price (as of Jul 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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