Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diesel and natural gas engine specialist China Yuchai International
With that in mind, let's take a closer look at China Yuchai's business and see what CAPS investors are saying about the stock right now.
China Yuchai facts
|Headquarters (Founded)||Singapore (1951)|
|Market Cap||$1.14 billion|
President/Director Boo Guan Saw
CFO Weng Ming Hoh
|Operating Margin (Average, Past 3 Years)||8.2%|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92% of the 381 members who have rated China Yuchai believe the stock will outperform the S&P 500 going forward. These bulls include CRACKTACTOR and All-Star rhallbick, who is ranked in the top 0.5% of our community.
Late last month, CRACTACTOR tapped China Yuchai as timely opportunity: "If one can muster the courage to ignore our inherent fears about Chinese securities, this is a good bet. After all, the building boom continues, and there's not an industrial application that these guys don't make an engine for."
In fact, China Yuchai currently sports a rather paltry P/E of 6.6. That represents a clear discount to rival engine maker Cummins (18.8), as well as other heavy-equipment plays like Navistar International
CAPS member rhallbick expands on the outperform argument:
The US recession didn't slow down China Yuchai's (CYD) growth. ... Their commercial vehicle hybrid diesel engine, YCHPT, which was introduced in 2009, has attained an industry leading position, with its approximately 20% energy savings compared with standard diesel engines. They are attempting to break into the higher-barrier heavy-duty truck market, with their heavy-duty YC6K product line. [T]he stock is perhaps no longer the great bargain, but they still seem relatively cheap, with a P/E under 9 and good growth prospects.
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