Weichai Power Recovery Engine sold 130,000 units in the first half

Weichai Power reported that the engine is still the main source of profit for Weichai Power, and its share in net profit is about 70%. It is expected that the engine gross profit margin will rebound in the second half of the year. In the first half of the year, it benefited from the high growth of heavy trucks and construction machinery, with engine sales reaching 216,600 units, including 137,000 heavy-duty engines, a year-on-year increase of 60.4%.

Weichai Power achieved a sales revenue of 20.978 billion yuan in the first half of 2008, a year-on-year increase of 36.75%; a net profit of 1.66 billion yuan, a year-on-year increase of 94.95%; earnings per share of 3.19 yuan, a year-on-year increase of 71%, exceeding market expectations; net per share The asset was 14.87 yuan, which was the highest among listed companies in the first half of this year. The high boom in heavy trucks and construction machinery in the first half of the year led to a significant increase in the sales of engines and transmissions, which was the main reason for the company’s substantial increase in net profit.

Under the background that the prices of raw materials such as steel may fall back, the gross margin of the company's products will recover. Weichai's mid-year report shows that the gross profit rate of engines, especially gearboxes and whole vehicles, is greatly affected by the increase in raw material prices in the first half of the year, among which the proportion of raw materials such as steel in the entire vehicle and engine is 10% and 12% respectively. If steel prices decline in the second half of this year or next year, the gross profit margin of Weichai Power Products will recover.

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