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China Yuchai reports 13.9% Q2 revenue growth on stronger heavy-duty sales
Gross margin rose to 17.1% from 14.3%, driven by a shift toward larger, higher-margin engines and improved operating efficiency.
China Yuchai International Limited reported Q2 2026 revenue growth of 13.9%, driven mainly by a 10.9% increase in engine unit sales, with heavy-duty truck engines leading the segment’s 47.3% growth, according to a summary of the company’s earnings call provided by Yahoo Finance.
The company said its gross profit margin expanded to 17.1% from 14.3%, attributing the improvement to a favorable shift toward larger, higher-margin engines and enhanced operational efficiency. It also reported that its MTU Yuchai joint venture profit increased 56.2%, helped by demand for high-horsepower engines used in marine and power generation.
Management said it mitigated rising precious metal costs through cost rationalization and improved its heavy-duty sales mix. It also pointed to progress in AI data center (AIDC) engine demand, with about 1,800 units sold in the first half of 2026, and an expectation that full-year 2026 AIDC engine sales will reach about 3,500 units or more.
In the quarter, the company said it completed an acquisition of a 27.97% stake in Nanyue Fuel Injection Systems (NYDK) to strengthen its supply chain and access advanced powertrain technologies, and it began consolidating NYDK results on April 1, 2026, following control acquisition on March 31, 2026. The company also discussed plans for an IPO of its genset power subsidiary on the Hong Kong Stock Exchange and said it is expanding production capacity for high-horsepower engines to 5,000 units through internal process optimization and subcontracting.