Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant revenue growth in the first half of 2025, with total revenue reaching 1.66 billion yuan, a year-on-year increase of 12.07%. The net profit attributable to shareholders was 119 million yuan, up 42.54% year-on-year. Excluding the impact of the sale of a subsidiary, the net profit increased by 27% [8] - The growth in revenue is primarily driven by the sanitation and mining equipment sectors, with sanitation equipment revenue increasing by 34% year-on-year to 798 million yuan, and mining equipment revenue from a subsidiary rising by 111% to 641 million yuan [8] - The company is benefiting from the increasing demand for new energy sanitation vehicles, with a 92% year-on-year increase in industry sales and an 18% increase in the company's own sales [8] - The company is also expanding its presence in the new energy mining vehicle market, achieving an 84% increase in sales in this segment [8] Financial Summary - Total revenue projections for 2023A, 2024A, 2025E, 2026E, and 2027E are 2,907 million yuan, 3,799 million yuan, 4,529 million yuan, 5,531 million yuan, and 6,760 million yuan respectively, with year-on-year growth rates of -18.92%, 30.67%, 19.23%, 22.12%, and 22.22% [1] - Net profit attributable to shareholders is projected to be 218.40 million yuan in 2023A, 227.08 million yuan in 2024A, 262.44 million yuan in 2025E, 330.24 million yuan in 2026E, and 412.84 million yuan in 2027E, with corresponding growth rates of -43.36%, 3.97%, 15.57%, 25.83%, and 25.01% [1] - The latest diluted EPS is expected to be 0.41 yuan in 2023A, 0.43 yuan in 2024A, 0.49 yuan in 2025E, 0.62 yuan in 2026E, and 0.77 yuan in 2027E [1]

Core Viewpoint - Yutong Heavy Industries Co., Ltd. reported a significant increase in revenue and net profit for the first half of 2025, driven by growth in its core businesses of sanitation equipment, mining equipment, and basic engineering machinery [12][19]. Financial Performance - The company achieved operating revenue of approximately 1.66 billion yuan, a year-on-year increase of 12.07% [12]. - Total profit reached approximately 169.59 million yuan, up 56.61% from the previous year [12]. - Net profit attributable to shareholders was about 118.70 million yuan, reflecting a 42.54% increase compared to the same period last year [12]. - The company reported a net cash flow from operating activities of -15.65 million yuan, a significant decline from 121.50 million yuan in the previous year [12]. - As of the end of the reporting period, total assets were approximately 4.24 billion yuan, down 9.73% from the end of the previous year [12]. Business Segments Sanitation Equipment - Yutong Heavy Industries aims to be a leader in high-quality new energy sanitation equipment, focusing on high efficiency and high load capacity [3]. - The company has developed a range of products for urban sanitation, including street sweepers, garbage collection vehicles, and cleaning equipment, with energy types covering fuel, pure electric, hybrid, and hydrogen fuel cells [3][4]. - In the first half of 2025, the demand for sanitation equipment increased, with a total of 39,218 units sold, a year-on-year growth of 5.9% [5][6]. Mining Equipment - The company is positioned to become the preferred choice for new energy mining trucks, focusing on safety and efficiency [6][7]. - Yutong Heavy Industries has developed various types of mining vehicles, including electric and fuel-powered options, with applications in mining transport and construction [6][7]. - The mining equipment market is characterized by small batch orders and a dispersed customer base, leading to a production model focused on order-based manufacturing [7][8]. Basic Engineering Machinery - The company is committed to becoming a leading manufacturer of basic engineering machinery, with products including electric rotary drilling rigs and hydraulic compactors [10]. - The engineering machinery market is influenced by national infrastructure investment, with demand affected by macroeconomic conditions [10][11]. - The company has seen a decline in sales for some products due to reduced new project starts, but is focusing on electric and intelligent machinery to align with national carbon neutrality goals [11][12]. Strategic Focus - The company has divested its sanitation service subsidiary to concentrate on its core manufacturing businesses, enhancing its competitive edge in sanitation equipment and mining equipment [12][19]. - Yutong Heavy Industries emphasizes product innovation, technology advancement, and management innovation to build a differentiated competitive advantage [12][19]. - The company plans to increase its investment in new energy products and expand its market presence in the mining vehicle sector [17][18].