YTCO(SH:600066) Dongguan Securities·2026-01-29 09:31Investment Rating - The report maintains a "Buy" rating for Yutong Bus (600066.SH) [2] Core Insights - Yutong Bus is the leading player in the domestic bus industry, with a comprehensive product matrix and a market share exceeding 30% as of 2025. The company has maintained its position as the top seller of medium and large buses for 23 consecutive years [8][16]. - The company's financial performance shows a strong transition from scale-driven growth to efficiency-driven growth, with a net profit growth of 35.4% year-on-year in the first three quarters of 2025, significantly outpacing revenue growth [8][21]. - Yutong has established a technological moat with its "Rui Control E Platform," which enhances vehicle performance and operational efficiency, solidifying its competitive edge in the electric and intelligent vehicle sectors [8][52]. - The company's high-end export strategy has paid off, with a 22.5% year-on-year increase in export volume in 2025, and exports accounting for over 34.6% of total sales [8][60]. - The bus industry is entering a new growth cycle characterized by profitability recovery and globalization, driven by domestic policies supporting equipment upgrades and the global shift towards electric vehicles [8][40]. Summary by Sections 1. Leading Development in the Bus Sector - Yutong Bus is the first listed company in the domestic bus industry, with a diverse range of products covering various market segments, including public transport, tourism, and specialized vehicles [16]. - The company has achieved a net profit margin of 12.76% in the first three quarters of 2025, reflecting its strong profitability and industry-leading financial metrics [21][26]. 2. Market Recovery and Company Advantages - The bus market is recovering, with a projected 12.3% year-on-year growth in sales for 2025, driven by domestic demand and international market opportunities [40][41]. - Yutong's core technologies are leading the industry, with a significant increase in export sales and a focus on high-margin products [48][60]. 3. Investment Recommendations - Yutong Bus is positioned for significant long-term value, benefiting from both domestic recovery and international expansion. The company is expected to achieve net profits of 48.24 billion, 55.88 billion, and 65.22 billion yuan for 2025-2027, with corresponding PE ratios of 14.61, 12.61, and 10.81 [66].