YTCO(SH:600066) Changjiang Securities·2024-05-16 03:02Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported Q1 2024 revenue of 6.616 billion yuan, a year-on-year increase of 85.01%, and a net profit attributable to shareholders of 657 million yuan, up 445.09% year-on-year. The non-recurring net profit was 571 million yuan, reflecting a year-on-year increase of 1094.7%. The Q1 performance significantly exceeded expectations, indicating a continuous improvement in profitability [2][6][7]. - The company benefits from a robust export business, with significant sales growth leading to substantial revenue increases. In Q1 2024, the company sold 6,967 large and medium buses, a year-on-year increase of 101.2%, and exported 2,590 units, up 92.6%, outpacing industry growth [6][7]. - The company's gross margin for Q1 2024 was 24.8%, an increase of 3.4 percentage points year-on-year. The net profit margin reached 9.9%, up 6.6 percentage points year-on-year, supported by a decrease in battery costs and economies of scale [6][7]. Summary by Sections Financial Performance - Q1 2024 revenue was 6.616 billion yuan, with a year-on-year growth of 85.01% - Net profit attributable to shareholders was 657 million yuan, a 445.09% increase year-on-year - Non-recurring net profit reached 571 million yuan, reflecting a 1094.7% year-on-year increase [2][6]. Market Dynamics - The domestic market is experiencing a recovery in demand for seated buses, with the industry bottoming out. The company is gaining market share due to its leading position [7]. - The overseas market presents significant growth opportunities, with the company leveraging its competitive edge in electric buses and expanding into high-end markets [7]. Investment Value - The company is recognized as a leading player in the global bus market with a strong competitive moat, indicating good long-term growth potential and a consistent high dividend capability. The dividend for 2023 was 1.5 yuan per share, with a payout of 3.32 billion yuan, resulting in a dividend rate of 182.8% and a yield of 5.6% [7]. - Forecasted net profits for 2024-2026 are 2.98 billion, 3.64 billion, and 4.35 billion yuan, respectively, with corresponding price-to-earnings ratios of 20.0X, 16.4X, and 13.7X [7].