2023 DPS $0.38, dividend payout ratio 92%
Yutong Heavy Industries released its annual report. In 2023, it achieved revenue of 2,907 billion yuan (yoy -18.92%), net profit to mother of 218 million yuan (yoy -43.36%), deducting non-net profit of 141 million yuan (yoy -51.47%). Among them, Q4 achieved revenue of 893 million yuan (yoy -24.78%, qoq +37.73%) and net profit of 93.5013 million yuan (yoy -37.30%, qoq +231.97%). The company plans to pay a dividend of 0.38 yuan per share, the same as the previous year, with a dividend ratio of 92.01%, corresponding to a dividend rate of 4.4%. In line with industry development, the company's 2024 revenue/cost/expense plan is $37.05/26.90/620 million yuan (2023 revenue/cost and expense plan of 41.48/$37.31 billion). We expect the company's 2024-2026 EPS to be 0.52, 0.60, and 0.70 yuan respectively. Comparatively, the company's 2024 Wind unanimously expected an average PE value of 16.4 times. Considering the company's obvious advantages for new energy sanitation vehicles and mining vehicles, the company was given 19.6 times PE in 2024, with a target price of 10.19 yuan (previous value of 10.71 yuan), maintaining the “gain” rating.
The amount of insurance on new energy sanitation vehicles in the industry was +28% year on year. According to China Automobile data terminal retail sales statistics, China insured 77,183 sanitation vehicles in 2023, down 6.1% year on year. Among them, 6,227 new energy sanitation vehicles were insured, up 27.7% year on year, and the new energy penetration rate was 8.1%. In 2023, the company's sanitation equipment business achieved operating revenue of 1,197 billion yuan, a year-on-year decrease of 33%, sales volume of 2,748 units, and 2,607 units (yoy -34%), of which 1,150 new energy sanitation vehicles were insured (yoy -18%), with a market share of 18.5%, ranking first in the industry for four consecutive years.
Sanitation service revenue remained basically the same year over year
According to data from Environmental Affairs, the annual amount of the national sanitation market-based tender opening project in 2023 was 74.4 billion yuan, an increase of 7.5% over the same period last year. The company carried out strategic project structure optimization. In 2023, sanitation service revenue was 699 million yuan, which was basically the same as the previous year (701 million yuan in 2022); the annualized amount of sanitation service projects in progress at the end of the year was 700 million yuan, a decrease of 15% over the previous year.
New energy rotary drills maintain their first-mover advantage. The cumulative operating mileage of pure electric mining vehicles exceeded 31 million kilometers in 2023. Demand in the rotary drill market continued to be sluggish, and the industry volume declined year-on-year, but the trend of electrification of rotary drills is obvious. The company launched electric rotary drill products in 2020. The volume of the bridge inspection vehicle industry fluctuated less from year to year, mainly because the current market is becoming saturated and sales are stabilizing. The company's new energy rotary drills maintain a first-mover advantage, and maintain the number one brand in the industry, and bridge inspection vehicles maintain the first tier in the industry. The company's pure electric mining vehicles have been operated in 28 provinces and more than 100 mining areas across the country. The cumulative operating mileage exceeds 31 million kilometers, and the maximum operating mileage of bicycles exceeds 200,000 kilometers. Overseas markets continue to expand, and projects have now been implemented in many countries and regions such as Thailand, Indonesia, the United Arab Emirates, and Chile.
Risk warning: Sales of sanitation equipment fell short of expectations, competition in the sanitation service market intensified, and mining vehicle sales growth fell short of expectations.