Zhongtong Bus benefits from the old-for-new policy and has broad prospects in overseas markets

At present, the domestic policy of replacing old vehicles with new ones is in an accelerated and effective period, and local governments have clear goals for the renewal of new energy buses. According to estimates, under a neutral assumption, this round of old-for-new policies is expected to release an increase of 23,000 new energy buses in domestic demand and an increase of 550 million yuan in profits. The fourth quarter is usually the peak period for domestic bus bidding and delivery. As a leading automaker in the industry, Zhongtong Bus is expected to benefit fully from it. At the same time, the company's export business maintains a strong trend, with a total export of approximately 5,062 vehicles from January to September 2024, a year-on-year increase of 72.1%. The company is actively exploring overseas high-profit markets such as Europe, Singapore, and Mexico, and has the potential for continued export growth.