upshifting structure significantly higher

Sales revenue growth promoting upshifting structure significantly higher sales growth. Big ZhongKe industry sales status in the first quarter, sales year-on-year growth still good, because productivity nervous 18.2%, the company has sales coach 8078 year-on-year 15.2% cars, below industry growth; But period the company product marketing structure, including price move significantly higher 3896 car sales for the coach to sales ratio, compared with last year's 42.2% up 3.5 percentage points in the first quarter, driving the business income is growing at 25.1%, significantly higher sales growth.
By strengthening the management is realized under the background of the profit level rise in the cost of ascension. Period of the company's products, gross margin for comprehensive 17.2 year-on-year decline 0.2 percentage points; Significant 9.9 percent, during the year-ago period, 0.8 percent year-on-year increase overall profitability. Company in raw material prices high, local labor costs soared through the background, strengthen internal management, and actively adjust product sales structure, realized the profit level rising, again reflects our excellent management ability. We think, because at present the capacity is relatively nervous, in the downstream Christian Louboutin Evening Sale, demand remains robust background, the company will further strengthen management, adjust sales structure and realizing the rapid growth of annual profit level.
The company will continue to benefit from the big new ZhongKe industry boom cycle. The 2011 up high iron and inter-city passenger dedicated line into operation started mass, short-term inside high fares will drive the price sensitive part of highway passenger travel passengers to choose again, be helpful for highway passenger industry driven boom, and then pull the ascension of degree of highway passenger transport demand. Long-term look, high-speed railway and inter-city passenger special line continuous traffic will drive the whole society travel efficiency considerably increase, the whole society will be improved, and travel frequency for highway passenger brought tory burch online a lot of ZhongDuanTu consult demand; Manufacturing moved west and urban manufacturing "bring back city into park" new commute rising demand; Cities for solving the problem of traffic congestion and accelerating urban transit system is expected to promote the construction of bus rapid release of product requirement. Based on the above analysis, we think that began in the fourth quarter of 2009 the new round of the large and medium-sized buses industry boom cycle will still has continued in the next three years. The company new capacity will be put into production in 2012, capacity problem solving will ensure the future the company fully benefit from big ZhongKe industry's new boom cycle.
Investment rating. We maintain the big ZhongKe industry YuTong passenger ratings, valued as industry leading, will depend on product obvious competitive advantage, excellent management ability, continuous benefit from big ZhongKe industry'sTory Burch Sandals, new boom cycle. We maintain 2011 and 2012 225 yuan, 2.76 yuan, maintain company earnings forecasts, target price to buy rating 33.75 yuan.
Risk hints. 1) macro economic boom degree, passenger market demand fell sharply downturn; 2)
The capacity expansion progress below expectations. (QinXuWen) Orient securities institute