Events:

Ankai bus (000868) released its annual report on March 16th. During the reporting period, the company achieved operating income of 3.736 billion yuan, an increase of 18.51% over the same period last year; net profit of shareholders belonging to listed companies was 98 million yuan, an increase of 33.82% over the same period last year; and basic earnings per share was 0.30 yuan. Annual distribution plan: cash dividend of 1 yuan (including tax) for every 10 shares.

Comments:

The increase in operating income is due to the increase in operating vehicle sales. The company's total operating income in the current period increased by 18.51% compared with the same period last year. In the company's processing and manufacturing business, the sales revenue of operating vehicles reached 3.492 billion yuan, an increase of 12.67% over the previous year. The operating income of the other two businesses, such as automobile chassis and accessories, and car repair business, decreased significantly by 33.45% and 12.99%. In the whole year, the company sold a total of 7200 passenger cars of various types, 1.42 times more than the same period last year. During the reporting period of remarkable achievements in international strategy, the company made progress in its international business, selling 1900 passenger cars in overseas markets, an increase of 1.5 times over the previous year. The company has actively implemented the strategy of developing overseas markets. In 2011, the company successfully signed orders with Saudi Arabia for 3000 school buses, exported 330passenger cars to Russia and won the bid for Cyprus and London passenger cars. Remarkable results have been achieved in the internationalization strategy. The sales revenue of exports this year was 572 million yuan, about 2.2 times that of the previous year. During the period when the comprehensive gross profit margin was flat, the expense rate dropped continuously from 2009 to 2011, and the company's comprehensive gross profit margin was 12.23%, 12.10% and 12.37% respectively. Under the background of fluctuations in raw material prices, the company's gross profit margin is basically flat. During the reporting period, the company's comprehensive gross profit margin increased slightly by 0.26 percentage points over the previous year. In the segment business, the gross profit margin of the spare parts repair business decreased obviously. After reaching a high of 11.29% in 2009, the company's period expenses continued to decline to 10.35% and 10.03% in 2010 and 2011, indicating that cost control has been improved during the company's period. during the reporting period, the development of new energy has become a core strategy of the company. The National Electric bus Integrated system Engineering and Technology Research Center has been approved, and the company has maintained the leading position in the research and development capability in the field of new energy buses. The market share of pure electric bus is among the best. The company's new energy bus has realized market-oriented operation in 20 cities, including Hefei, Shanghai, Dalian, Kunming and so on. The company's new energy project won more than 90% of the non-designated products of the national pure electric bus in 2011, and the fund-raising project was put into construction. In August 2011, the company raised 458 million yuan for the expansion of new energy vehicles and the construction of key powertrain manufacturing and R & D integration projects. The project was officially launched in 2012., It will be completed and put into production by the end of 2013. At that time, the company will have an annual production capacity of 6000 new energy buses and 12000 sets of new energy bus key powertrain.

Profit forecast and recommendation rating the market demand for urban transportation, tourist buses and school buses will continue to grow steadily. At the same time, the company maintains the advantage of R & D capability in the field of new energy buses, and the marketization of new energy buses is making rapid progress. New energy provides the company with the driving force for sustainable development. The basic earnings per share of Ankai bus in 2012 is 0.30 yuan, and the basic earnings per share in 2012, 2013 and 2014 are expected to be 0.37 yuan, 0.43 yuan and 0.53 yuan respectively. With December 30 as the base date, the corresponding PE is 19, 16 and 13 times respectively. Give a rating of "overweight".