Yutong Bus (600066) H1 2024 earnings summary

Executive summary

• Achieved revenue of RMB 16.34 billion in H1 2024, up 46.99% year-over-year, with net profit attributable to shareholders of RMB 1.67 billion, up 255.84% year-over-year, driven by strong domestic tourism recovery and robust export growth.

• Sold 20,555 buses, up 35.82% year-over-year, maintaining industry leadership in large and medium-sized bus production and sales.

• Significant growth in overseas sales and improved sales structure contributed to profit surge.

Financial highlights

• Revenue: RMB 16.34 billion (up 46.99% YoY); net profit: RMB 1.67 billion (up 255.84% YoY); operating cash flow: RMB 5.36 billion (up 83.90% YoY).

• Gross margin improved as sales volume increased; basic EPS: RMB 0.76 (up 255.84% YoY); ROE: 11.82% (up 8.54 ppt YoY).

• Non-recurring gains (mainly government subsidies and fair value changes) totaled RMB 2.42 billion.

Outlook and guidance

• Domestic bus demand expected to remain stable or slightly increase in H2 2024, supported by new energy bus replacement policies and urban-rural integration projects.

• Overseas demand for new energy buses projected to continue growing, especially in Europe, Latin America, and Southeast Asia.