Yutong Bus (600066) 2019 Third Quarterly Report Review-Performance Meets Expected Highlights

  • -

Yutong Bus (600066) 2019 Third Quarterly Report Review-Performance Meets Expected Highlights

Category : cktdpaq

Yutong Bus (600066) 2019 Third Quarterly Report Review-Performance Meets Expected Highlights

Net profit attributable to mothers in the third quarter of 20196.

42 trillion, ten years +10.

44%, in line with expectations.

According to the number of reports, the company still achieved sales, revenue and profit improvement against the background of the decline in industry sales and the replenishment of new energy vehicles, which fully reflects the company’s competitiveness as a leader in the bus industry.

In the medium and long term, the company’s technology and manufacturing capabilities are leading the world, and its products are becoming high-end and intelligent. It is expected to benefit from the optimization of the industry structure and the expansion of overseas export markets, and maintain a “buy” rating.

Matters: On October 28, the company released the 2019 third quarter performance report, and Q3 achieved operating income of 83 in a single quarter.

5.7 billion, +13 per year.

59%; net profit attributable to mother 6.

42 trillion, ten 杭州桑拿网 years +10.

44%, we commented as follows: Single-quarter results for the third quarter of 20196.

42 trillion, ten years +10.

44%, in line with expectations.

The first three quarters of 2019 achieved revenue of 208.

62 trillion, ten years +7.

68%, net profit attributable to mother 13.

2.5 billion, ten years +10.

62%, net profit of non-attributed mothers11.

19 trillion, ten years +9.

59%.

In a single quarter, Q3 achieved operating income of 83.

57 trillion, +13 for ten years.

59%, + 9% MoM; net profit attributable to mother 6.

42 trillion, ten years +10.

44%, +72.

39%.

In addition, the company’s operating cash flow continues to improve every year, and the net operating cash flow for the third quarter of 2019 was 16.

2.4 billion, an increase of 14 from the second quarter.

2 trillion, only -13 in 杭州夜网 the same period last year.

1.2 billion.

The gross profit margin improved month-on-month, and the expense ratio decreased significantly during the period.

The company’s Q3 single quarter gross margin was 24.

1%, qoq + 2pcts, year round -3.

2 pcts, the month-on-month increase in gross profit margin was due to the retreat of new energy transportation subsidies. The sales volume of new energy in the third quarter was relatively high. The gradual decline was mainly due to the significant increase in new product ASPs in the same period last year and the impact of battery cost adjustments last year.

In terms of expenses, the company’s Q3 expense ratio during the single quarter was 14.

05%, twice -2.

36 tablets, -2.

The 39% decrease was mainly due to the decline in the R & D expense ratio and financial expense ratio.

In terms of subjects, the cost of selling expenses is 7.84%, ten years +1.

4pcts; management expense ratio 2.

31%, same as last year; R & D expenses3.

600 million, down 1 year.

1 ppm; finance costs are -0.

35%, down by 1 every year.

7.

Passenger car sales increased slightly, and the share of new energy remained high.

In the first three quarters, the company gradually sold 42,140 passenger cars, +6 per year.

57%, the domestic market for large and medium-sized passenger cars sold twice.

63%, the company’s sales growth is significantly better than the industry.

By quarter, the company’s Q1 / Q2 / Q3 passenger car sales were 1 respectively.

06/1.

49/1.

670,000 vehicles, at least +6.

3% / + 0.

2% / + 13.

2%.

According to the data from the First Commercial Vehicle Network, the company’s Q1 / Q2 / Q3 new energy bus sales were 2,946 / 5,799 / 6,195 units, respectively, an increase of +56% /-15% / + 81%.

The company’s new energy bus market share has always been at a high level, and from January to September, the company has gradually sold 14,940 new energy buses.

84%, much higher than the second-pass Zhongtong Bus (11.

17%).

“Price management” is gradually promoted, and high-end technology opens up room for growth.

The company started to implement price management for different products and customers at the beginning, and differentiated orders for different price-sensitive customers.

Product “price management” further opened up the company’s sales space.

In addition, the company actively deployed high-end products. At the World Bus Expo in Brussels in October, Yutong displayed three high-quality bus products (two of them are pure electric buses) and received three awards, including the Busworld Design Award.

In terms of intelligence and networking, as of August 2019, Yutong L4 autonomous buses have successfully operated over 10,000 kilometers on open roads in Henan, China. At the same time, the company launched the 5G networked terminal at the Brussels Expo.

Risk factors: New energy bus sales are lower than expected; the cost of power batteries has fallen less than expected; new energy vehicle policy fluctuations.

Investment suggestion: Maintain the company’s 2019/20/21 earnings per share forecast1.

09/1.

14/1.

20 yuan.

For the time being 13.

92 yuan, corresponding PE is 12 respectively.

8/12.

2/11.

6 times.

The company’s sales volume in the industry and the background of the new energy vehicle replenishment decline, still achieved sales, revenue, and profit improvement, which fully reflects the company’s competitiveness as a leader in the passenger car industry.

In the medium and long term, the company’s technology and manufacturing capabilities are leading the world, and its products are becoming more high-end and intelligent. It is expected to benefit from the optimization of the industry structure and the expansion of overseas export markets.