China Securities Co.,Ltd.: The export and domestic demand of the bus industry are in resonance and on the rise. Leading companies will continue to release their performance potential with rising profits and benefits.

China Securities Co., Ltd. released a research report stating that the passenger vehicle industry is in a period of prosperity with export growth and domestic demand recovery. Leading companies will continue to release performance elasticity as export growth is driven by external demand and the increase in market share of Chinese brands, with a potential market size exceeding 140,000 vehicles, doubling the current market size. Domestic public transportation subsidies will continue to increase, with individual vehicle subsidies increasing from 60,000 to 80,000, further driving domestic demand. The passenger vehicle industry has a high concentration of market share, with the profit margin of leading companies, especially in exports of new energy vehicles, significantly higher than domestic sales. Increasing exports will continue to release performance elasticity, while domestic sales recovery will further contribute to profit growth. The recommended company is Yutong Bus Co., Ltd. Key points from China Securities Co., Ltd.: - In 2024, China's exports of large and medium-sized passenger vehicles reached 45,000 vehicles, a year-on-year increase of 38%, benefiting from demand in regions such as the Middle East, Asia, and Latin America, as well as the increase in market share of Chinese brands. The market has the potential to exceed 140,000 vehicles, doubling in size. - In 2024, domestic sales of large and medium-sized passenger vehicles reached 71,000 vehicles, a year-on-year increase of 27%, driven by public transportation subsidies and the recovery of the tourism market. - The passenger vehicle industry has a high concentration of market share, with the top three companies accounting for over 70% of exports and over 60% of domestic sales. - The profit margin for exports of leading companies, especially new energy exports, is significantly higher than domestic sales, contributing to the improvement of profitability. Industry Overview: - The passenger vehicle industry is experiencing a recovery in both domestic and international demand, and Chinese companies are moving into the global top tier. Export Market: - China's passenger vehicle exports are growing steadily due to increased overseas demand post-pandemic and improving products, operations, and brand influence. The top five export markets are the Middle East, Asia, CIS, Latin America, and Africa. Competition: - Chinese brands hold a market share of around 16% overseas, with a concentration ratio of over 70% among the top three exporters. Domestic Market: - The domestic market is experiencing a recovery in sales with the tourism industry rebounding and the implementation of new energy public transportation subsidies. Sales are expected to continue to rise in the future.