YTCO(SH:600066) GUOTAI HAITONG SECURITIES·2025-10-30 11:29Investment Rating - The report maintains a "Buy" rating for the company with a target price of 41.46 CNY [6][13]. Core Insights - The company reported significant growth in revenue and net profit for Q3 2025, with revenue reaching 26.37 billion CNY, a year-on-year increase of 9.5%, and net profit of 3.29 billion CNY, up 35.4% year-on-year [2][13]. - The company achieved a remarkable Q3 performance with revenue of 10.24 billion CNY, reflecting a 32.3% year-on-year increase and a 5.4% quarter-on-quarter increase, while net profit surged to 1.36 billion CNY, up 79.0% year-on-year [13]. - The company has maintained its technological leadership, receiving international recognition, including seven awards at the 2025 Bus World Expo in Belgium [13]. Financial Summary - Total revenue is projected to grow from 27.04 billion CNY in 2023 to 56.57 billion CNY by 2027, with a compound annual growth rate (CAGR) of 18.0% from 2024 to 2025 [5][14]. - Net profit attributable to shareholders is expected to increase from 1.82 billion CNY in 2023 to 7.28 billion CNY in 2027, reflecting a CAGR of 31.2% from 2024 to 2025 [5][14]. - The company's gross margin improved to 22.4% in the first three quarters of 2025, up 1.0 percentage points year-on-year, while the net profit margin reached 12.8%, an increase of 2.6 percentage points year-on-year [13]. Market Performance - The stock has a market capitalization of 67.55 billion CNY, with a 52-week price range of 21.43 to 31.66 CNY [7]. - The stock's price-to-earnings (P/E) ratio is projected to decrease from 37.17 in 2023 to 9.27 by 2027, indicating an attractive valuation as earnings grow [5][14]. Competitive Position - The company is recognized as a leader in the bus manufacturing sector, particularly in the new energy bus market, with a significant increase in overseas sales, which accounted for 38.59% of total sales in Q3 2025 [13].