YTCO(SH:600066) Guoxin Securities·2024-08-27 13:52Investment Rating - The report maintains an "Outperform" rating for Yutong Bus (600066.SH) [1][14]. Core Views - Yutong Bus has demonstrated strong financial performance with a significant increase in net profit driven by both domestic recovery and export growth. The company reported a 55% quarter-on-quarter increase in net profit for Q2, with a total revenue of 9.72 billion yuan, representing a year-on-year growth of 29% [1][5]. - The company is expected to benefit from ongoing domestic market recovery and increasing export volumes, particularly in the new energy vehicle segment. The forecast for 2024 anticipates a revenue of 32.9 billion yuan, reflecting a year-on-year growth of 21.8% [1][14]. Summary by Sections Financial Performance - In H1 2024, Yutong Bus achieved sales of 20,555 buses, a year-on-year increase of 35.82%. The total revenue reached 16.336 billion yuan, up 46.99% year-on-year, and the net profit was 1.674 billion yuan, marking a 255.84% increase [5][12]. - The gross margin for Q2 2024 was reported at 26.1%, an increase of 2.6 percentage points year-on-year, attributed to improved order quality and scale effects [1][10]. Market Dynamics - The domestic bus market is expected to continue its recovery in 2024, supported by policies encouraging the replacement of old buses. The tourism market is also showing signs of stable recovery, contributing to increased demand [12][14]. - Yutong Bus is expanding its export market, with a focus on new energy vehicles, leveraging its competitive advantages in technology and service [12][14]. Future Outlook - The company is positioned to benefit from both cyclical recovery and growth opportunities, with expectations of sustained performance in both domestic and international markets. The forecasted net profits for 2024-2026 are 3.16 billion, 4.03 billion, and 4.75 billion yuan, respectively [1][14].