Yutong Bus (600066): Q1 performance is in line with expectations The company continues to overweight R & D

Yutong Bus (600066): Q1 performance is in line with expectations The company continues to overweight R & D

Event: The company announced the first quarter report of 2019, and realized operating income of 48 from January to March.

4 ppm, an increase of 3 per year.

9%; net profit attributable to mother 3.

1 ppm, an increase of 5 in ten years.

4%; net profit of non-attributed mothers 2.

5 ‰, a ten-year average of 9.

4%; net operating cash flow -17.

600 million.

苏州夜网论坛 High research and development costs dragged down performance, and the rush to install effect drove the sales of new energy buses. The company sold 10,597 buses in 1Q19, which gradually increased6.

3%, mainly due to the rapid increase in sales of new energy buses under the rush installation effect. In 1Q19, the company sold 2,984 new energy buses, about 1,000 more than last year, an increase of 58.

8%.

March 26-June 25, 2019 is the transition period for new energy supplements, with a decline of about 40% and a decline of about 60% in the official period. It is expected that the rush installation effect will continue in the second quarter and the sales of new energy buses will still perform well.In the second half of the year, the company’s sales will face downward pressure on scale.

The company reduced non-net profit by 9%.

4%, mainly due to the drag on growth in research and development expenditure, research and development expenditure in the first quarter of 1919.

20,000 yuan, an increase of 58 in ten years.

7%.

In order to meet the challenges of intelligence, networking, and electrification, the company’s increasing investment in three-technology projects, and increased the recruitment of research and development personnel in 2018, leading to an increase in research and development costs. It is expected that the research and development costs in 2019 will be the same or slightly higher than last year.

The cost reduction additive product structure is optimized, and the gross profit margin is reduced. The company’s gross profit margin in 1Q19 was improved.

3%, an increase of 1 per year.

6pct, mainly due to the decline in procurement costs and the increase in the proportion of new energy bus sales, led to improved gross profit margin.

The company’s expense ratio was 20 during 1Q19.

6%, an increase of 3 per year.

3pct, mainly due to the increase in R & D expense ratio, of which the sales expense ratio is 6.

8% (decade +0.

3pct), management expense ratio 3.

4%, R & D expense ratio 8.

6%, financial expense ratio 1.

8% (flat for one year).

Profit forecast and investment recommendations New energy supplements a major retreat and road passenger demand is sluggish, and the overall passenger car market is under pressure.

In the downturn of the industry boom, leading companies have stronger anti-risk capabilities and are expected to seize more market share during the downturn in the industry. As the industry leader, Yutong Bus coexists with challenges and opportunities during difficult times in the industry.The company should lay the foundation for the next generation in response to industry reforms.

The company’s EPS for 2019-2021 is expected to be 1.

00 yuan, 0.

99 yuan, 1.

08 yuan, corresponding to 14 PE for 2019-2021.

5 times, 14.

6 times, 13.

3 times.

Maintain the company’s “overweight” rating. Risk reminder: The new energy vehicle market is less than expected and compensates for the risk of decline.