Weichai Power dividend
Weichai Power declared an interim dividend of RMB0.517 per share, and its 2025 free cash flow of RMB18,907.11306467 million covered shareholder payments of RMB6,878.4802883 million. Weichai Power's dividend is growing but cyclical, with payouts changing as earnings and payout capacity weaken or margins improve.
How much does Weichai Power pay per share over time?
Weichai then made shareholder returns more explicit. It cancelled 50,252,475 repurchased shares in May 2026. In August, it declared an interim dividend of RMB0.517 per share, while management said the interim payout ratio had risen from 55% to 58%. The conclusion is measurable: Weichai can return cash, but its capital-allocation record will depend on whether delayed projects turn retained and raised money into durable returns.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 1.26 | 1.31 | 1.04 | 0.57 | 1.13 |
| Real free cash flow per share | 2.09 | 1.78 | 2.02 | -1.37 | 1.38 |
| − Dividends paid, per share | 0.71 | 0.67 | 0.39 | 0.28 | 0.43 |
| − Share buybacks, per share | 0.09 | 0.00 | 0.00 | 0.12 | 0.00 |
| = FCF not paid out, per share | 1.27 | 1.08 | 1.61 | 0.88 |
Is Weichai Power's dividend covered by its cash?
Cash generation recovered in 2023–25. In 2025, free cash flow reached RMB18,907.11306467 million, while shareholder payments were RMB6,878.4802883 million, or 36.4% of free cash flow. Acquisitions required RMB513.71498698 million. Debt repayments exceeded new borrowing, but cash still fell and year-end net cash was RMB22,467.91323486 million, below its 2021 level.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 18,907.11306467 | 15,951.29435699 | 17,632.56162653 | -12,027.24334679 | 11,837.03301806 |
| − Dividends paid | 6,094.86134358 | 5,816.22539583 | 3,342.73905904 | 2,429.30872168 | 3,647.70075118 |
| − Share buybacks | 783.61894472 | 0 | 0 | 1,036.02235839 | 0 |
| = Free cash flow not paid out | 10,983.47201616 | 9,383.83683001 | 13,888.85467593 | 7,374.9032794 | |
| Paid to shareholders | 6,878.4802883 | 5,816.22539583 | 3,342.73905904 | 3,465.33108007 | 3,647.70075118 |
| Paid out, % of free cash flow | 36.4% | 36.5% | 19.0% | not meaningful | 30.8% |
What this means. In 2022, the company paid shareholders more than its business generated in cash, so it had to use savings or borrow money to cover the difference.
What could change Weichai Power's dividend?
Dividends start at CNY0.99 in the base case, then reach CNY1.08 and CNY1.17. The analyst’s NTM EPS estimate is CNY1.70763, while management said the interim payout ratio rose to 58%. The forecast therefore assumes 9% annual EPS growth, with margins below stronger 2024 levels.
The bear case gives CNY0.75 initially, then CNY0.68 and CNY0.68 as earnings and payout capacity weaken. The bull case gives CNY1.10, CNY1.30 and CNY1.50 as mix and margins improve. The five-year record, including the 2022 cut and later recovery, supports a dividend that is growing but cyclical.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Net asset value | 101,000 (93,000 / 106,000) | 112,000 (96,000 / 123,000) | 123,000 (99,500 / 141,000) |
| Shares (millions) | 8,662 (8,665 / 8,655) | 8,660 (8,668 / 8,645) | 8,658 (8,671 / 8,635) |
| Dividends per share | 0.99 (0.75 / 1.10) | 1.08 (0.68 / 1.30) | 1.17 (0.68 / 1.50) |
| Price to net asset value | 1.85 (1.25 / 2.20) | 1.80 (1.10 / 2.40) | 1.75 (1.00 / 2.50) |
What this means. Price to net asset value shows how much investors pay for each unit of what the company owns after its debts are subtracted.
What is Weichai Power's dividend yield today?
At HK$25.42, the trailing P/E is 14.5x. P/E means the share price divided by earnings per share: it tells us how much investors pay for each unit of current profit. But engine earnings move with factory utilisation. Buildings, machinery and staff cost money even when fewer trucks are sold, so profit can rise quickly in a strong market and fall faster than sales in a weak one. A low P/E near the top of that cycle may therefore be less attractive than a higher P/E near the bottom.