Yutong Bus (600066) June production and sales data review: production and sales have significantly improved for decades and are optimistic about the increase in performance brought by overseas business

Yutong Bus (600066) June production and sales data review: production and sales have significantly improved for decades and are optimistic about the increase in performance brought by overseas business

Event description: The company released the June 2019 production and sales report. In June 2019, the company’s passenger car production and sales were 4,367 and 4,550 vehicles, respectively, and this year’s gradual production and sales were 24,387 and 25,427 vehicles.

Event comment Production and sales have improved significantly for the time being, and the performance of Chinese customers is dazzling.

On the whole, the company’s passenger car production and sales have increased significantly, turning positive for many years, with monthly production and sales of 4,367 and 4,550 vehicles, each increasing by 4 each time.

30%, 8.

63%, the cumulative production and sales this year were 24387 and 25429, respectively, and the growth rate was -4.

52%, 2.

62%.

In terms of different models, the monthly production and sales of large passenger cars, medium-sized passenger cars, and light-duty passenger cars both improved from the previous month. Among them, the production and sales of medium-sized passenger cars increased by 34 in June.

64%, 33.

16%, an increase of 43 each year.

82%, 54.

36%.

The transition period for subsidies for new energy buses has not yet ended, which is expected to bring some increase to the company.

According to the new energy vehicle subsidy policy in 2019, the transition period for new energy transport vehicles will be supplemented from May 8, 2019 to August 7, 2019. It is expected that the new energy transport vehicle market will be installed in July, and boots will be promoted as newEnergy buses are part of the increase.

However, on the whole, railways have squeezed the demand for passenger cars, and new energy has replenished the decline, which has put some pressure on passenger car production and sales, and the industry as a whole is still under pressure.

Product lines are perfected to increase margins of performance and safety, and overseas business is expected to provide incremental business for the company.

From an industry perspective, the urbanization rate has continued to increase. Many overseas countries have announced a timetable for banning the sale of traditional energy vehicles. New energy buses and overseas businesses are expected to provide new increments for the passenger car sector.

As the leader of the passenger car industry, the company has a leading market share of large and medium-sized passenger cars, complete product lines of passenger cars, covering the company’s active deployment 杭州桑拿网 of overseas markets, and covering six major regions in Europe, the CIS, the Americas, Africa, Asia-Pacific, and the Middle East through multiple channelsIn more than ten countries and regions such as Ethiopia, Malaysia, Myanmar, Myanmar, Pakistan, Venezuela and other countries and regions to conduct local cooperation through KD assembly, the company is expected to further expand the market through its rich technology accumulation and promotion experience, and provide incremental growth for the company.

Investment suggestion: As a leader in the passenger car industry, the company has a high overall safety margin, expanding the company’s continuous R & D and expansion, actively distributing high-end products and overseas markets, promoting the continuous optimization of the company’s product structure, and the steady improvement of profitability.

Based on this, the company’s EPS for 2019-2021 is expected to be 1.

15/1.

24/1.

29, corresponding to the company’s closing price of 13 on July 5, 2019.

69 yuan, the company’s PE for 2019-2021 will be 11.

88/11.

04/10.

63. Maintain the company’s “overweight” rating.

Existing risks: major adjustments in industry policies; advancement of high-end products has fallen short of expectations; overseas business has fallen short of expectations.