YTCO(SH:600066)2024-11-06 16:34Summary of Conference Call Records Company Overview - The company discussed in the records is Yutong, a prominent player in the bus manufacturing industry, particularly focusing on electric and public transport buses. Key Points and Arguments 1. Market Position and Growth Potential - Yutong is considered one of the top two stocks in the system, with a strong emphasis on its growth potential in the overseas market, particularly benefiting from the Xinjiang technology boom. The company aims to achieve a long-term export target of 20,000 units, which is deemed highly achievable [1][2]. 2. Delivery and Sales Performance - The company reported total sales of over 3,200 units, reflecting a 40% year-on-year increase, although there was a 15% decline compared to the previous quarter. Exports accounted for 1,100 units, maintaining the same level as the previous quarter but showing a 70% increase year-on-year [3][4]. 3. Sales Strategy and Market Dynamics - The delivery rhythm is expected to vary significantly each year, with a recommendation for investors to remain patient regarding the sales data for November and December. The company is confident in achieving its annual sales target of 2,600 units [2][3]. 4. Challenges in Domestic Market - Domestic sales have seen a quarter-on-quarter decline, although year-on-year figures remain positive. The fourth quarter is typically a slow season for non-public buses, and the recovery in the public bus sector is not as optimistic as anticipated [4][5]. 5. Order and Tender Situation - There has been a notable increase in tendering activity since September, following new policy implementations. The company expects more vehicles to be delivered in the last two months of the year, aligning with the increased order volume [4][5]. 6. Electric Vehicle (EV) Export Performance - The completion rate for EV exports stands at 65% for the first ten months, with a significant number of deliveries expected in November and December. The company maintains a strong confidence in meeting its targets despite the current challenges [5][6]. 7. Financial Outlook and Valuation - The company maintains its profit forecast of 3.3 billion for the current year and 4 billion for the next, with a price-to-earnings ratio projected at 13 to 14 times for the upcoming year. Yutong is also noted for its high dividend yield, expected to remain stable at over 6% [6]. Additional Important Information - The company emphasizes a cautious and conservative approach in its operations, which is reflected in its communication with investors. The fourth quarter is anticipated to be a peak season for Yutong, with expectations of a strong performance in both sales and profitability [5][6].