Company announcement: Jinlong Motor sold 4,294 vehicles in April 2023, +50.4%/+22.4% over the same period; production was 4,201 vehicles, +46.0%/-3.7% over the same period last month.

Looking at vehicle length, Dazhong and Light Bus sold 1758/543/1993 vehicles in April 2023, +155%/+233%/-0.5% year-on-year, +17%/+111%/+14% month-on-month; production was 1708/471/2022, +108%/+112%/+10% year-on-year, -14%/+94%/-5% month-on-month.

The sales structure has been significantly optimized, and the proportion of large and medium customers continues to increase. Large and medium customers accounted for 54% of sales, +24pct/+4pct compared to the same period last month.

The company as a whole went to the warehouse. In April 2023, the company removed 93 vehicles as a whole, and the inventory of large, medium and light buses changed to -50/-72/+29 vehicles, with a total of 1,465 vehicles added in 2023.

Domestic and foreign resonated, and downstream demand for buses continued to recover. The export momentum of the Belt and Road Initiative is strong. According to the company's official account, in April 2023, Golden Travel delivered 70 new energy buses to Israel, Suzhou Jinlong 14 Taichung buses were delivered to El Salvador, Jinlong 200 BRT buses were delivered to Uzbekistan, and Golden Travel 114 buses were delivered to Saudi Arabia. Domestic travel demand has recovered, and Golden Dragon buses have been delivered to scenic spots such as Mount Huashan and Laoshan Mountain.

Profit forecast and investment rating: Based on sales continuing to exceed expectations, the 2023 performance was slightly increased, and the company's 2023-2025 operating income was raised from 196/218/25.4 billion yuan to 205/233/266 billion yuan, +12%/+14% +14% year on year, and the net profit of the mother was raised from 0.32/242/522 million yuan to 0.72/241/528 million, +233%/+119% from 2024 to 2025, the corresponding EPS for 2024-2025 was raised to the corresponding EPS of 2023-2025 0.10/0.34/0.74 yuan, PE is 76/23/10 times. Maintain the company's “buy” rating.

Risk warning: The recovery of the global economy fell short of expectations, and domestic and foreign bus demand fell short of expectations.