Yutong Bus (600066) sales review in August 2019-sales slightly exceeded expectations

Yutong Bus (600066) sales review in August 2019-sales slightly exceeded expectations

In August 2019, the company’s passenger car sales were 5,349, a slight decrease of 0 every year.

8%, slightly exceeding market expectations.

In the short term, in the first half of the year, under the background of the decline in industry sales and the replenishment of new energy vehicles, the company still achieved sales, revenue and profit enhancement, 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.

5,349 units were sold in August 2019, next to -0.

8%, slightly exceeding market expectations.

The company sold 5,349 passenger cars in August 2019, -0 per year.

82%, cumulative sales of 38,494 vehicles from January to August (+14 per year.

45%), sales of new energy 重庆耍耍网 vehicles are expected to be about 1,000 units, the company’s passenger car sales from July overdraft brought about changes around August, slightly exceeding market expectations.

Looking at the structure of each model, the company sold 2,034 large passenger cars (+6 each time.

86%); 1,936 medium-sized buses sold (at least -9.

45%); 1,109 light buses sold (twice +0.

91%).

In the first half of the year, the company’s business grew against the trend, and its outstanding capabilities were prominent.

2019H1 company achieved revenue of 125.

05 ten percent (+4).

06%), net profit attributable to mother 6.

830,000 yuan (ten years +10.

78%), net profit after returning to mother 5.

2.2 billion yuan (+0 a year).

66%), under the background of the decline in industry sales and the new energy vehicle supplementary decline, still achieved growth, slightly exceeding market expectations.

In addition, the company’s operating cash flow has continued to improve for ten years, and the net operating cash flow for 2019H1 is 2.

07 million (2019Q1 is -17.

60,000 yuan, -11 in 2018H1.

900 million).

Excellent R & D investment, from electric to intelligent, networked.

The company has identified R & D funding. In 2018 and 2019, H1 R & D expenses were 18 respectively.

$ 600 billion and 2.

9.2 billion, accounting for 5 of the total revenue.

9% and 6.

3%, which is mainly used for the development of new technologies and new products, as well as the development of intelligent and network-connected development based on electrification. It is expected to promote the company’s product upgrades and increase the company’s scale.

It is expected that in the future, traffic in the park, ferry operations, and short- and long-distance buses will be some of the first scenarios for intelligent driving. The company will reserve intelligent network-connected technologies and products in advance to grasp the initiative. It is expected to bring the development trend of the intelligent network-connected era in the medium and long term.

The long-term beneficiary industry has been cleared, and the contribution of new energy has increased significantly.

With the implementation of supplementary policies, the development of the domestic new energy bus industry has shifted from policy-driven to market-driven.

The company’s new energy bus market share has always been at a high level and showing an upward trend. In 2018, the company’s new energy bus market share reached 24,621 vehicles, the first market share, reaching 27%, clearly ahead of the second BYD (13%).

7%) and other competition.

From January to July this year, the company gradually sold 12,992 new energy buses, with a market share of 31.

47%, far more than the second-pass Zhongtong Bus (11.43%).

In the future, the tax rebate slope will be gradually added to accelerate the withdrawal. The industry’s low-end and inefficient production capacity is expected to be gradually cleared, and the industry will gradually be concentrated, which will help the company expand.

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 now 14.

40 yuan, the corresponding PE is 13 respectively.

2/12.

6/12.

0 times.

In the short term, against the background of the decline in industry sales and the replenishment of new energy vehicles, the company still achieved contrarian growth, fully reflecting 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 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.