Zhitong Finance APP has learned that since the beginning of this year, the sales of new energy vehicles have maintained rapid growth, but the industry as a whole is facing a series of challenges, including rising raw material and logistics costs, and shortage of chip supply. As a pioneer of domestic new energy vehicles, BAIC Blue Valley (600733.SH) insisted on high-end transformation and made every effort to build the Extreme Fox brand. It achieved steady growth in the first three quarters, with sales of about 28,700 units from January to September, an increase over the same period last year. 69.05%; of which, the sales volume in September reached 4,279 units, a year-on-year increase of 74.65%. Among them, the sales of its high-end brand Jihu Automobile in September increased by 24.84% year-on-year, which means that the proportion of high-end products has been further improved. The pace of high-end transformation is further accelerated. At the same time, the continuous positive data also makes investors full of expectations for the future performance of BAIC Blue Valley and Jihu.
Continue to increase R&D investment, strategically deploy smart track
Since its inception, BAIC Blue Valley has been continuously building its own technical capabilities, investing a lot of resources in tackling key areas of new energy, and continuously improving its competitive advantages in the technology field. At present, R&D has entered a stage of benign growth. In October of this year, the Extreme Fox Alpha T built on the BE21 platform stood out among many participating models and won the “Top Ten Chassis in China in 2022” award in one fell swoop. It is understood that BE21 is a fully redundant electric vehicle hardware platform jointly built by BAIC Blue Valley and Magna. It has the characteristics of super expansion, super intelligence, super interaction and super evolution, and can support intelligent driving above L3 level. Last year, BAIC Blue Valley authorized foreign companies based on the platform technology, creating a precedent for Chinese auto industry technology to go overseas. It is not difficult to see that the leadership of BAIC Blue Valley in the new track of intelligent driving is self-evident.
In terms of technology upgrade and development, BAIC Blue Valley has also launched and applied the self-developed “Ji Feng” motor based on its deep accumulation of three-electrical technology. The controller is integrated into one, achieving breakthroughs in efficiency and reliability. It is the first electric drive assembly in China and the only electric drive assembly that has been certified by China Automotive Industry Research Institute “Energy Efficiency Star”.
Today, thanks to the investment in the technology field and the accumulation of technologies in the three-electrical field over the years, BAIC Blue Valley has the ability to develop the whole process of new energy vehicles from design to test verification, forming a cross-platform and modular architecture. The forward development system has further enhanced the comprehensive competitiveness of the company.
Continue to enrich the product mix and further increase the proportion of high-end products
In addition to technology research and development, the constantly enriched product structure also effectively enhances the overall competitiveness of the company.
Different from other car companies, Jihu has subverted the previous idea of car building, thinking about the definition and polishing of products from the perspective of the whole scene and the needs of specific groups. Up to now, the Jihu brand has three models on sale, including the all-terrain pure electric performance SUV Alpha T, a new generation of intelligent luxury pure electric sedan Alpha S, and Jihu and Huawei’s high-end intelligent luxury pure electric car Jihu Alpha S brand new HI version.
In terms of specific models, Jihu Alpha S has been expanded from the original three models on sale to five models, and Jihu Alpha T has also been expanded from the original four models to five models, and the product structure has been continuously optimized. , upgrade, the proportion of high-end products further increased. Among them, the Alpha S standard battery life version and the Alpha T standard battery life version launched in August this year further meet the needs of the younger generation of consumers for high-end smart electric vehicles. In terms of price, although the price of related models has dropped, the competitiveness of the new car has only increased, and the performance of the three-electric system has been further improved without shrinking the performance, quality, safety, and configuration of the vehicle.
In terms of product competitiveness, Jihu is also holding high, setting a number of industry benchmarks. Take the new HI version of the Extreme Fox Alpha S, which was launched in May this year, as an example. The car has brought a subversive breakthrough to the industry, both in intelligent driving and in the intelligent cockpit, and has pushed the electric vehicle industry into the first year of high-end intelligent driving. , bringing high-end intelligent driving into the public eye, which is of great significance to the industry.
With the full delivery of the new HI version of Alpha S, and the improvement of the standard battery life version, the advantages of Jihu products will be further revealed, and sales are expected to continue to maintain long-term stable growth.
Accelerating the layout of marketing channels, the high-end transformation effect is prominent
It can be seen that the product strength of Jihu and its insight into market segments should not be underestimated, and BAIC Blue Valley also has high hopes for the Jihu brand. It is understood that last year, BAIC Blue Valley focused on accelerating the layout of the C-end market, and created innovative marketing around user co-creation, circle-level operation, and marketing IP. Since the beginning of this year, Jihu has continued to increase its weight and sponsored many concerts of Cui Jian, Luo Dayou and “You want to be good” in the form of exclusive title. In addition, this year Jihu also sponsored the Beijing Guoan Football Club. This series of out-of-the-circle marketing has greatly improved Jihu’s popularity, reputation, and brand influence.
At present, the company is accelerating the improvement of the terminal and supporting service system. As of September this year, Jihu Automobile has more than 171 stores nationwide, and it is expected to reach 186 this year. In terms of service network construction, Jihu Auto has built 82 authorized service centers, covering 56 cities across the country, and an energy-replenishing network consisting of 1,289 certified charging stations covering 40 cities across the country has also been officially put into operation.
The capital market continues to be optimistic about the fourth-quarter results and is expected to stabilize and rebound
Market analysis believes that BAIC Blue Valley is still in a stage of healthy financial status and the overall operating situation continues to pick up. Considering the impact of many external unfavorable factors such as the epidemic, chips, and supply chain in the first three quarters of this year, BAIC Blue Valley handed over this product. A transcript can better show strong resilience and risk resistance.
In the fourth quarter, BAIC Blue Valley will continue to improve its research and development capabilities, promote the implementation of related products as soon as possible, and at the same time continue to strengthen the self-research capabilities of application layer software in the driving domain, vehicle control domain, and cockpit domain, and finally realize the three-domain full-stack self-development.
At the same time, BAIC Blue Valley will also promote the iteration of products simultaneously. It is expected that after the batch delivery of the new HI version of the Alpha S, based on the in-depth cooperation with Huawei, the HI version will continue to be installed on the follow-up models of the Alpha S. Next year and the year after, a model equipped with Huawei’s HI full-stack smart car solution will be launched, including new products for younger groups.
Some institutional analysts believe that BAIC Blue Valley has always played the role of an industry pioneer in the new energy vehicle industry, leading the development direction of the industry in terms of technology product development and marketing ecological layout. Benefiting from the stable and positive development trend of BAIC Blue Valley, the product structure and sales quality have been continuously optimized and improved, and the capital market continues to be optimistic about the growth potential of BAIC Blue Valley. It is expected that the performance in the fourth quarter is expected to stabilize and rebound. In the long run, its high-end brand Jihu has great potential for development, and its competitiveness in the entire independent new energy brand will gradually be reflected.