Yongda (3669 HK) The Proportion of Premium Car Further Increased March 26, 2021 373

PSR Recommendation: ACCUMULATE Status: Downgraded
Target Price: HKDHKD16.50

Investment Summary
FY2020 Revenue Increased by 10% and Profit Continuously Increased by 50+% in 20Q4
The Company reported a revenue of RMB69.633 billion at a YoY growth rate of 9.1% in 2020.
The gross margin was 9.29%, which was generally equivalent to that for 2019, and slightly
reduced by 0.06 ppts. Net profit attributable to the parent company recorded RMB1.63
billion at a YoY growth rate of 10.3%, which generally met our previous expectation. Among
these, the quarterly profit was, respectively, RMB60/470/480/620 million, at a respective
YoY growth rate of -83%/+21%/+41%/54%. DPS was RMB0.288 at the dividend payout ratio
of 35%. After-sale business contributed RMB4.376 billion to gross profit, grew 6.3% YoY, and
made up 58.63% of total gross profit. New vehicle sales contributed RMB1.555 billion to
gross profit, jumped 25% YoY, and made up a higher rate of 20.83% of total gross profit. The
comprehensive gross profit margin generally remained the same and slightly reduced by
0.18 ppts YoY to 10.72%, for the main reason that the growth rate of new vehicle sales
business with slightly lower margin was higher. The gross margin of new vehicle sales
increased by 0.32 ppts YoY to 2.67%, and the gross margin of after-sale business slightly
reduced by 0.36 ppts YoY to 46%.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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