YTCO(SH:600066) Zhongyuan Securities·2024-09-03 09:31Investment Rating - The report assigns a "Buy" investment rating to the company, indicating an expected relative price increase of over 15% compared to the CSI 300 index within the next six months [2][9]. Core Views - The company has shown significant improvement in operational efficiency driven by both exports and new energy vehicle sales, with a notable increase in market share in the medium and large bus segments [2][3]. - The company reported a revenue of 16.36 billion yuan for H1 2024, a year-on-year increase of 46.99%, and a net profit of 1.674 billion yuan, up 25.84% year-on-year [2][3]. - The demand for medium and large buses has surged, with total industry sales increasing by 35.64% year-on-year, and the company's sales in this segment rising by 41.54%, leading to a market share of 36.80% [2][3]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 16.36 billion yuan, with a net profit of 1.674 billion yuan, and a non-deducted net profit of 1.432 billion yuan, reflecting a substantial increase of 332.40% year-on-year [2][3]. - The gross margin improved to 26.1% in Q2 2024, with a year-on-year increase of 2.61 percentage points [2][3]. - The operating cash flow for H1 2024 was 5.36 billion yuan, up 83.9% year-on-year, indicating strong cash flow management [2][3]. Market Dynamics - The report highlights a favorable policy environment, with new subsidies for electric buses expected to stimulate demand in the public transport sector [2][3]. - The company is positioned to benefit from the ongoing recovery in the tourism sector and the resumption of overseas markets, which are anticipated to drive further growth in bus demand [2][3]. Future Projections - Revenue projections for the company are set at 34.424 billion yuan for 2024, 39.864 billion yuan for 2025, and 46.521 billion yuan for 2026, with corresponding EPS estimates of 1.45, 1.89, and 2.19 yuan [3][7]. - The report anticipates a continued upward trend in the bus industry, driven by the electrification of public transport and the "old-for-new" policy initiatives [2][3].