\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 066 Yutong Bus Co.Ltd(600066) )
Event:
Yutong Bus Co.Ltd(600066) released the annual report for 2021: in 2021, the company achieved an operating revenue of 23.233 billion yuan, a year-on-year increase of + 7.04%; The net profit attributable to the shareholders of the listed company was 614 million yuan, a year-on-year increase of + 18.95%; The net profit attributable to the shareholders of the listed company after deducting non profits was 300 million yuan, a year-on-year increase of + 646.09%.
Key investment points:
The cost reduction strategy was effective and the gross profit margin increased significantly. In Q4 of 2021, the company achieved an operating revenue of 7.571 billion yuan, a year-on-year increase of – 6.42% and a month on month increase of + 29.26%; The net profit attributable to the parent company was 352 million yuan, with a year-on-year increase of – 2.04% and a month on month increase of + 200.85%; The gross profit margin was 21.17%, with a year-on-year increase of + 6.76pct and a month on month increase of + 0.33pct, mainly due to the effectiveness of the company’s cost reduction strategy and the enhancement of its cost control ability.
The overseas market continues to expand. The company created the “Yutong mode” made in China and exported, and its products have been sold in batches to more than 30 countries and regions around the world. By the end of 2021, the company had exported more than 80000 passenger cars, forming an export layout covering six regions, including America, Africa, Asia Pacific, CIS, the Middle East and Europe. In 2021, 55 Yutong E12 pure electric buses were exported to Denmark, 10 Yutong BRT pure electric buses were exported to Mexico City, and 9 Yutong E10 pure electric buses were put into operation in Poland for the first time. In addition, the CKD plant with an annual capacity of 1000 vehicles built by Yutong in cooperation with Kazakhstan was officially started in June 2021, further expanding Kazakhstan and the whole CIS market. At present, the company has completed the planning and layout of overseas U-series products and the development and listing of new products of 12m pure electric highway in Europe. Subsequently, with the promotion of a full range of pure electric bus products in overseas markets in 2022, the company’s performance is expected to continue to grow.
Product optimization and upgrading, power smart electric. Following the development trend of intelligent electric, the company has made an in-depth layout of key technologies of automatic driving and intelligent network connection, fuel cell technology and “three electricity” technology, completed the development and upgrading of a variety of products, and continued to make efforts in intelligent electric products. In 2021, the company completed the layout of 10-18m Yuwei full range of pure electric bus products and the listing of 12m new energy highway products, and launched e6s microcirculation minibus for community travel. In addition, the L4 self driving bus Xiaoyu 2.0 has carried out public trial riding activities in Qingdao. In the future, it will carry out demonstration operation in xiong’an and other places to broaden the application scenarios.
The profit forecast and investment rating of the company were lowered due to the factors such as the downward demand for bus travel and the rising price of raw materials. However, as the leader of China’s passenger cars, the company actively expands the overseas market and arranges new intelligent electric business, and the Chinese market pattern is expected to be optimized. We are optimistic about the future development of the company. It is estimated that the company’s main business income from 2022 to 2024 will be RMB 27.1 billion, 30.5 billion and 33.1 billion, with a year-on-year growth rate of 17%, 13% and 8%; The net profit attributable to the parent company was 932 million yuan, 1.325 billion yuan and 1.597 billion yuan, with a year-on-year growth rate of 52%, 42% and 21%; The current price ratings of “0” and “59” are 12.0 and 71.59 respectively, and the corresponding price ratings of “reasonable” and “reasonable” are 14.0 and 71.59 respectively.
The risk indicates that the improvement of the epidemic situation in China is less than expected; Overseas export business is less than expected; Risk of exchange rate changes; The development of new intelligent electric business is less than expected; Upstream raw material prices continued to rise.
