Yutong Bus (600066) sales review in September 2019: declining sales and subsequent recovery

Yutong Bus (600066) sales review in September 2019: declining sales and subsequent recovery

Sales of 3,646 vehicles in September 2019, round-trip -38.

3%, slightly lower than market expectations, expected to recover in the future.

In the short term, in the first half of the year, under the background of the decline in industry sales and the replenishment of new energy vehicles, the company still achieved sales, revenue and profit enhancement, which fully reflects the company’s competitiveness as a leader in the passenger car industry.

In the medium and long term, the company’s technology and manufacturing capabilities are leading the world, and its products are becoming high-end and intelligent. It is expected to benefit from the optimization of the industry structure and the expansion of overseas export markets, and maintain a “buy” rating.

Matters: On the evening of October 9, the company announced that in September 2019, bus sales of 3,646 vehicles, round-trip -38.

3%, slightly lower than market expectations.

We commented on this item as follows: 3,646 units sold in September 2019, each time -38.

3%, slightly lower than market expectations, and subsequent growth is expected to resume.

The company sold 3,646 passenger cars in September 2019, -38 per year.

3%, cumulative sales of 42,140 vehicles from January to September, +6 per year.

57%, we speculate that the company’s new energy sales in September were about 1,000 vehicles.

The sales volume dropped significantly in September. We speculate that it is related to the confirmation time of some orders, and the subsequent sales growth is expected to resume.

Looking at the structure of each model, the company sold 1,411 large passenger cars in September at -51.

8%; 1,591 medium-sized buses sold, -25 a year.

8%; sales of 644 light buses, -23 a year.

1%.

By quarter, Q3 achieved sales of 16,711 vehicles, +13 per year.

2%, +12.

5%.

“Price management” is gradually promoted, and high-end technology opens up room for growth.

The company started to implement price management for different products and customers at the beginning, and differentiated orders for different price-sensitive customers.

The product “price management” further opened up the company’s sales space. Under the background of the low economic prosperity of the company, the company’s passenger car sales have continued to grow, and the sales volume from January to July increased by + 17%, which is much higher than the industry growth rate (at least -10%)about).

In addition, based on the long-term, the company promotes the comprehensive upgrade of products through high-end technology, widens the distance from other spindles, and achieves differentiated competition.

At present, the company’s high-end product T7 has been recognized by the market, and this model’s sales volume is expected to increase significantly in 2019.

Excellent R & D investment, from electric to intelligent, networked.

The company has identified R & D funding. In 2018 and 2019, H1 R & D expenses were 18 respectively.

$ 600 billion and 2.

9.2 billion, respectively accounting for 5 revenues.

9% and 6.

3%, mainly used for new technology and new product development, and based on the electrification of the development of intelligence, networking and other directions to expand, in the future to promote the company’s product upgrades, increase the company’s scale.

We expect that in the future, traffic in the park, ferry operations, and short- and long-distance buses will be some of the scenarios used by intelligent driving. The company 杭州夜网论坛 will reserve intelligent network connected technologies and products in advance and grasp the initiative. It is expected to benefit from the development trend of the intelligent network connected era in the medium and long term.
The long-term beneficiary industry has been cleared, and the contribution of new energy has increased significantly.

With the implementation of supplementary policies, the development of the domestic new energy bus industry has shifted from policy-driven to market-driven.

The company’s new energy bus market share has always been at a high level and showing an upward trend. In 2018, the company’s new energy bus market share reached 24,621 vehicles, the first market share, reaching 27%, clearly ahead of the second BYD (13%).

7%) and other competitors.

From January to August this year, the company gradually sold 14,004 new energy buses, with a 北京夜网 market share of 31.

24%, far ahead of the second-place Zhongtong Bus (11.

14%).In the future, the tax rebate slope will be gradually added to accelerate the withdrawal. The industry’s low-end and inefficient production capacity is expected to be gradually cleared, and the industry will gradually be concentrated, which will help the company expand.

Risk factors: New energy bus sales are lower than expected; the cost of power batteries has fallen less than expected; new energy vehicle policy fluctuations.