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Yutong Bus (600066): 19Q3 gross profit margin increased sequentially to achieve multi-year growth

Yutong Bus (600066): 19Q3 gross profit margin increased sequentially to achieve multi-year growth

The company released the third quarter report for 2019: the first three quarters achieved revenue of 208.

600 million, an annual increase of 7.

7%, net profit attributable to mother 13.

3 billion, a 10-year growth of 10.

6%; 19Q3 single-quarter operating income of 83.

6 billion, an increase of 13 in ten years.

6%, net profit attributable to mother 6.

4 billion, an increase of 10 in ten years.

4%.

19Q3 degree of gross profit margin increased month-on-quarter, mainly due to the increase in scale effects and cost reduction and efficiency.

The company sold passenger cars in the third quarter.

670,000 vehicles, +13 compared with the previous month.

2% / + 12.

5%, of which new energy is 0.

630,000, previous / mom +70% / + 7.

7%, realized income 83.

600 million, previous / mom +13.

6% / + 9.

0%, gross margin 24.

1%, previous / mom -3.

2 / + 2.

0pct.

The company’s new energy sales accounted for more than 19Q3, which was basically unchanged from the previous month.

The decrease in gross profit margin in 19Q3 was mainly due to the impact of the replacement of new energy buses and the scope of scale change. The increase in the chain rate was mainly due to the increase in scale effect in 19Q4 and the cost reduction of parts and components discussed in the first half of the year.

The 19Q3 expense ratio decreased month-on-quarter, mainly due to the decrease in sales and financial expense ratios.

Company 19Q3 expense ratio level 14.

1%, down 2 every year.

3pct, of which the selling expense ratio is 7.

8%, compared to formaldehyde 1.

3pct, 杭州桑拿 mainly reflecting the 19Q3 scale effect; management expense ratio 2.

31%, an increase of 0 from the previous month.

1pct; financial expense ratio -0.

35%, down from the previous month.

6pct, mainly because the yuan depreciation company in the third quarter generated some exchange gains.

The new energy bus industry is under pressure as a whole, waiting for the competitive landscape to clear, and maintaining the level of “prudent increase”.

Due to the magnitude of the compensation and the absolute limit, the overall sales of the new energy bus industry and the profit pressure broke through. Yutong still achieved positive sales, revenue, and profit growth in the first three quarters of 19 in a severe industry environment, reflecting the company’s surpassing the industryAverage sales, management, and product strength.

We believe that the industry structure will gradually clear, Yutong’s share will gradually increase, and the company is also actively exploring overseas markets. The new energy business is expected to make breakthroughs in export markets such as Europe.

We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 23 respectively.4/24.

8/26.

Earnings forecast of 400 million, maintaining the rating of “prudent overweight”.

Risk reminder: New energy bus sales are lower than expected, and new energy buses have safety incidents.