YTCO(SH:600066) Minsheng Securities·2024-08-27 08:43Investment Rating - The report maintains a "Recommend" rating for Yutong Bus (600066 SH) [1][2] Core Views - Yutong Bus achieved strong Q2 2024 results with revenue of 16 34 billion yuan (+46 99% YoY) and net profit of 1 67 billion yuan (+255 84% YoY) [1] - Overseas market expansion accelerated with 6 500 buses exported in H1 2024 (+58 27% YoY) ranking first in the industry [1] - Domestic new energy bus demand is expected to be stimulated by the new replacement policy offering subsidies of 80 000 yuan per vehicle [1] - The company is projected to achieve revenue of 33 91 39 64 and 46 18 billion yuan in 2024 2025 and 2026 respectively with net profits of 3 30 3 95 and 4 60 billion yuan [1][2] Financial Performance - Q2 2024 revenue reached 9 72 billion yuan (+28 95% YoY +46 91% QoQ) driven by strong overseas sales [1] - Q2 2024 net profit was 1 02 billion yuan (+190 63% YoY +54 74% QoQ) with a net profit margin of 10 53% [1] - Gross margin improved to 26 10% in Q2 2024 (+2 61pct YoY +1 26pct QoQ) [1] - R&D expenses accounted for 4 41% of revenue in Q2 2024 focusing on intelligent and high-end fields [1] Market Position - Yutong Bus is the leader in bus exports with operations in over 40 countries and regions [1] - The company exported over 6 000 new energy buses in H1 2024 [1] Valuation - The stock is trading at 14x 12x and 10x PE for 2024 2025 and 2026 respectively based on the closing price of 21 13 yuan on August 26 2024 [1][2] - The dividend yield is 7 10% based on 2023's dividend payout of 1 5 yuan per share [1] Growth Projections - Revenue is expected to grow at a CAGR of 16 5% from 2024 to 2026 [2][4] - Net profit is projected to grow at a CAGR of 16 5% from 2024 to 2026 [2][4] - EPS is forecasted to increase from 1 49 yuan in 2024 to 2 08 yuan in 2026 [2][4]