In May, Yutong was one of the most talented and golden dragons. In May, the sales of Yutong buses increased by 30.9% year-on-year, 23% higher than the average growth rate of the industry. With the promotion of exports, the sales revenue was 1.93 billion yuan (Statistics of Zhongke.com), an increase of 107.3% year-on-year. After the short-term performance of Sanlong was better than the industry average in April, the total sales in May increased only 2.7% year-on-year, again lower than the industry level by about 5 percentage points. In 2012, the domestic growth in sales of traditional passenger cars was weaker than in 2011. The growth drivers of the passenger car industry mainly came from exports and school buses. If companies want sales to grow faster, they need to seek breakthroughs in exports and school buses. DIN flange is germany flanges standard, popular using norm number DIN2573, DIN2576, DIN2543, DIN2544, DIN2545, DIN2501, DIN2641, DIN2642, DIN2527, DIN2631, DIN2632, DIN2633, DIN2634, DIN2635, DIN2565, DIN2566, flange type slip on plate, Blind Flange, lapped flange, Threaded Flange, Weld Neck Flange. Din Flange, DIN 2573 2576 plate flange, din2642 lapped flange, din 2631 2632 2633 2634 2635 wnrf flange, din2527 blind flange, din2566 threaded flange Jinan Hyupshin Flanges Co., Ltd , https://www.iflange.com
In the same period of 2011, the export base was large, and the growth rate of passenger car exports fell, but Yutong’s performance was excellent. From January to April, the monthly export volume of passenger cars increased by more than 35% year-on-year, accumulatively increasing by 47.2% year-on-year, but the passenger car exports in May decreased by 15.1% year-on-year, of which the export volume of major exporter Jinlong decreased by 37.3% year-on-year. In the case of poor performance in the entire industry, Yutong exported 681 buses in May, an increase of 176.8% year-on-year. We estimate that Yutong’s significant increase in exports in May should be due to fulfilling orders from Venezuela. The delivery date for this order is from January to July 2012. It is expected that some buses will still be delivered. Since May 2011, the monthly export volume has been maintained at more than 2,000 vehicles, and the growth rate of exports in the second half of the year may drop.
School bus sales accounted for a slight decrease, and the Yutong and Baoding Changan school bus market share ranked the top two. In May, the sales volume of school buses was 1,537 units, which was a decrease of 464 units compared to April. School buses accounted for 8.2% of the total sales of passenger cars, a decrease of approximately 2 percentage points from April. It is expected that the school buses will continue to reach the level of sales in May and July in July and August. The arrival of the school season will once again usher in the peak period. In 2012, the market share of Zhengzhou Yutong and Baoding Changan school buses ranked the top two for a single month, and the market leadership status was determined. In April, Suzhou Golden Dragon sold 130 school buses. After a short-lived moment, in May, the Jinlong Department sold only 29 school buses.
It is expected that the old car replacement subsidies in 2012 will have little incentive for the passenger car industry. This subsidy is mainly targeted at rural passenger vehicles and urban buses. The former has insufficient demand, low unit prices, and low profit margins. The latter is a financial investment. Subsidies are only allocated to the public transportation system in the name of subsidies. In addition, the official implementation time of this subsidy is only over six months. The time for operation is small and procedures are complicated. It is expected that the subsidy stimulus will be minimal.
The increase in the cost of equity incentives and new production capacity depreciation did not change the nature of Yutong’s strong operating capability. Since the company's listing in 1997, it has achieved 15 consecutive years of profit growth, which is rare in existing listed companies, especially in the automotive industry, which is characterized by strong cyclical and full competition, showing the company's superior operating capabilities. . The cost of equity incentives and depreciation of new production capacity increased, but it did not change the nature of the company's strong operating capacity. The revised equity incentive plan imposes higher requirements on the company's performance over the next three years. If we do not consider this equity incentive, we expect the 2012-2014 EPS of Yutong Bus to be 2.16 yuan, 2.32 yuan, and 2.68 yuan respectively; if we consider the impact of equity incentives, we expect the 2012-2014 EPS of the company to be 2.01 yuan and 2.17 yuan respectively. 2.50 yuan, maintain "recommended" investment rating.