ZHENGZHOU Yutong Bus Co Ltd, the nation's biggest bus maker, reported its first-half profit more than tripled as a higher emission standard prompted firms to buy buses that meet the stricter requirement.
Income soared 259 percent to 396 million yuan (US$57.8 million) from the same period a year earlier, Yutong said in a statement to the Shanghai Stock Exchange yesterday.
Yutong, based in Zhengzhou, Henan Province, joined other bus makers including Kinglong and Youngman in reporting higher first-half profit as a result of booming sales before the introduction of third generation emission standards earlier this month.
Yutong said it sold 15,332 buses during the first six months of this year and sales revenue rose 47.4 percent to 4.26 billion yuan during the same period.
"Yutong is likely to see a slower profit increase in the second half," said Dong Jianhua, an analyst with Southwest Securities Co Ltd. "But the bus maker will still benefit from the growth of the overall bus market."
Demand for public transport rose 4 percent year on year while a 10 percent jump in long-distance bus travel has also supported growth in China's bus market over the past few years.
Buoyant exports of buses that have a 20-to-30 percent price advantage compared with rivals on the international market have also driven growth. China's bus exports are mainly to the Middle East, South America, Southeast Asia and Africa.
Bus makers also face rising raw material costs that could erase their cost-cutting measures.
Shares of Yutong rose 4.57 percent to 13.04 yuan yesterday while the Shanghai Composite Index declined 2.62 percent.