Yutong Bus (600066): Complementary downhill impact on company performance

Yutong Bus (600066): Complementary downhill impact on company performance

The company released the 2018 annual report, reporting that the combined company realized total operating income of 317.

4.6 billion, an annual increase of -4.

44%, net profit attributable to shareholders of listed companies.

01 billion, an annual increase of -26.

45%, net profit attributable to shareholders of listed companies after deduction.

$ 8.3 billion, an annual increase of -36.

40%.

Key investment points: Compensating for the downturn dragging down the company’s performance and extending the industry average: The company’s revenue in 2018 increased by -4.

44%, net profit attributable to shareholders of listed companies increased by -26.

The initial reduction in net profit is 45%. The increase in the tax rebate slope of new energy buses in 2018 caused about 50% of the company’s profitability of new energy buses to be disrupted. However, the impact of the company’s performance was significantly higher than the industry average.Sustainable stress resistance.

In 2018, the company’s passenger car sales were 6.

09 million units, an increase of -9 in ten years.

51%, of which 5 are large and medium-sized passenger cars.

220,000 vehicles, an annual increase of -12.

55%, continue to rank first in the industry.

In 2019, the country’s electricity supply for new energy buses will fall by about 58%. The industry will be further affected by compensation and the decline of 武汉夜网论坛 the industry will be intensified. As a leading domestic bus company, the company will work to further expand the market during the industry reshuffle.

In addition, the supplementary policy continued to arrange the transition period and the announcement of the new energy transportation subsidy policy, reflecting the flexibility of the policy. In the first half of the year, the bus plan was to speed up the installation during the transition and gradually enter the pessimistic decline in the sales of new energy buses.

R & D spending increased and new products led the market: In 2018, the company’s sales expense ratio was 7.

91%, an increase of 0 from last year.

83%, mainly due to the increase in the average financing period of customers, which resulted in an increase in financing service fees. The management expense ratio was 8.

30%, up 2 from last year.

12%, mainly due to the increase in research and development costs, the company’s research and development costs18.

6.3 billion, an increase of 41 from last year.

45%, accounting for 5.

Up 87% from last year.

36%, mainly for new product development, advanced technology research, etc., and the company has also made good progress in the “new four modernizations” of passenger cars, realizing batch delivery of intelligent network-connected pure electric transport vehicles and batch shipments of fuel cellsPromotion and application.

Finance expense ratio 1.

02%, 0 lower than last year.

46%, as new energy buses can be applied for a pre-allocation of funds after the license plate is released this year, which will gradually reduce the company’s funding pressure.

Profit forecast and investment advice: We expect the company’s EPS for 2019-2020 to be 1, respectively.

11, 1.

21 yuan / share, for PE of 12 respectively.

54 times and 11.

47 times, given the company ‘s leading advantages in passenger cars and the market share of new energy buses that supplemented the decline, it is given an “overweight” rating.

Risk factors: Bus sales are lower than expected, and new energy bus sales are lower than expected