YTCO(SH:600066) Changjiang Securities·2025-01-15 12:55Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a significant increase in sales, with December sales of 8,615 units, representing a year-on-year increase of 82.9% and a month-on-month increase of 130.6%. For the entire year of 2024, total sales reached 46,918 units, up 28.5% year-on-year [2][4]. - The domestic market is experiencing continuous growth in seated buses, while the overseas market is benefiting from a globalization and high-end strategy, enhancing profitability through exports. The decline in battery costs, combined with economies of scale, supports the company's ongoing performance improvement [2][4]. - The company has slowed down capital expenditures, ensuring sufficient cash flow to support high dividends. In the first three quarters of 2024, the company distributed a total of 1.11 billion yuan in dividends, with a dividend payout ratio of 45.5% and a dividend yield of 1.8% [2][4]. Summary by Sections Sales Performance - In December 2024, the company sold 8,615 buses, with a year-on-year increase of 82.9% and a month-on-month increase of 130.6%. The sales of medium and large buses were 7,135 units, up 78.0% year-on-year and 160.0% month-on-month. The total sales for 2024 reached 46,918 units, a year-on-year increase of 28.5% [2][4]. Market Dynamics - The domestic market is seeing a significant increase in seated buses, driven by effective policies such as trade-in programs. The fourth quarter has entered a peak period for bus procurement, with notable orders for electric buses [2][4]. - The company is expanding its direct sales and service model, enhancing service quality and efficiency. It ranked first in customer satisfaction for bus brands in 2024 and plans to open 56 direct service centers and 25 direct parts warehouses [2][4]. Financial Outlook - The company is projected to achieve net profits of 3.51 billion yuan, 4.21 billion yuan, and 5.02 billion yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 17.6X, 14.7X, and 12.3X [2][4].