YTCO(SH:600066) Changjiang Securities·2024-09-02 08:44Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, achieving operating income of 16.34 billion yuan, a year-on-year increase of 47.0%, and a net profit attributable to shareholders of 1.67 billion yuan, up 255.8% [2][5]. - The company's performance in Q2 2024 exceeded expectations, driven by high growth in both domestic and export sales, with a notable increase in the quality of orders [5][6]. - The company is positioned as a leading global bus manufacturer with a strong competitive advantage, benefiting from a wide economic moat and a robust long-term growth outlook, alongside a consistent high dividend payout capability [6][7]. Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 9.72 billion yuan, a year-on-year increase of 29.0%. Total sales reached 12,824 units, up 19.9% year-on-year and 65.9% quarter-on-quarter, with export sales of 3,902 units, a year-on-year increase of 41.7% [5][6]. - The average selling price (ASP) per unit in Q2 2024 was 758,000 yuan, reflecting a year-on-year increase of 7.5% [5][6]. - The gross profit margin for Q2 2024 was 26.1%, an increase of 2.6 percentage points year-on-year, while the net profit margin reached 10.5%, up 5.8 percentage points year-on-year [5][6]. Market Strategy - The company is focusing on both domestic and international markets, with a strategy that emphasizes globalization and high-end product offerings. The domestic market is supported by a growing demand for passenger buses, while the international market is expanding through increased exports, particularly in the electric bus segment [6][7]. - The company is expected to benefit from the implementation of policies encouraging the replacement of old buses, which is anticipated to stimulate market recovery [6]. Dividend and Future Projections - The company has a strong cash flow position, allowing for high dividend payouts, with a proposed dividend of 1.5 yuan per share for 2023, representing a payout of 3.32 billion yuan and a dividend rate of 182.8% [6]. - Future projections estimate net profits for 2024, 2025, and 2026 to be 3.32 billion, 3.90 billion, and 4.65 billion yuan, respectively, with corresponding price-to-earnings (PE) ratios of 13.8X, 11.7X, and 9.8X [6].