Weichai Power Co., Ltd. (2338.HK) stock analysis

In our weekly check, Weichai Power Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 2.

About Weichai Power Co., Ltd.

Weichai Power Co., Ltd. is a Consumer Cyclical company (Auto - Parts) based in China, listed on HKSE as 2338.HK.

What our checks show for 2338.HK

Red flags

• The price swings a lot: 57.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 81% from a peak. Would you have held through that?

Warning signs

• Net debt is 0.8x a year of EBITDA (debt/equity 1.03). That limits room in a downturn and raises refinancing risk.
• The net margin is only 5.4%: little room if costs rise.
• Beta 1.59: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 8.8%.

Strengths

• The net margin rose by 0.7 points over 5 years, to 5.4%.
• The gross margin is 20.6% and has risen by 1.2 points: pricing power is holding.
• Operating cash flow is 2.6x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 26.9% a year over the next years.
• Earnings per share grew 38.1% a year over the last 3 years.
• Net profit grew 38.2% a year over the last 3 years.

Next earnings report: 2026-10-29

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Questions

What grade does Weichai Power Co., Ltd. (2338.HK) have?

In our weekly check, Weichai Power Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2338.HK stock?

This week's biggest flags for Weichai Power Co., Ltd.: Very volatile, Deep past fall, High debt. In total 6 of 25 checks show a warning or a red flag.

What does Weichai Power Co., Ltd. do?

Weichai Power Co., Ltd. is a Consumer Cyclical company (Auto - Parts) based in China, listed on HKSE as 2338.HK.

When does Weichai Power Co., Ltd. report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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