Author: Song Doudou
Source: 21st Century Business Herald
On the evening of October 28, BYD (002594.SZ) released its financial report for the third quarter of 2022.
According to the financial report, BYD achieved revenue of 117.081 billion yuan in the third quarter, a year-on-year increase of 115.59%; net profit attributable to shareholders of listed companies was 5.716 billion yuan, an increase of 350.26% year-on-year, setting a new high in a single quarter; deductions attributable to shareholders of listed companies are not frequent The net profit of sexual gains and losses was 5.335 billion yuan, a year-on-year increase of 930.48%.
In the first three quarters of this year, BYD achieved a total revenue of 267.688 billion yuan , a year-on-year increase of 84.37%; net profit was 9.311 billion yuan , a year-on-year increase of 281.13%; BYD’s net cash flow from operating activities in the first three quarters was 91.037 billion yuan, an increase of as much as 185.62%.
It is worth noting that BYD’s net profit attributable to the parent in the first three quarters of this year has exceeded the sum of the profits of the past three years. According to the financial report data, from 2019 to 2021, BYD’s net profit attributable to its parent was 1.614 billion yuan, 4.234 billion yuan, and 3.045 billion yuan respectively, with a total of 8.893 billion yuan.
Judging from the performance of the three quarters of this year, BYD’s profit has continued to grow this year. The net profit in the third quarter is more than twice that of the second quarter (2.787 billion yuan) and more than three times that of the first quarter (808 million yuan).
This is mainly due to the skyrocketing sales of BYD’s new energy vehicles. BYD previously stated in its performance forecast that BYD’s new energy vehicle sales maintained strong growth, continued to hit new highs, and continued to strengthen its market share. profit pressure.
After the official announcement in April to stop the production of fuel vehicles, BYD’s sales have been on the rise, exceeding 100,000 units for four consecutive months from March, 160,000 units in July, 174,000 units in August, and BYD’s sales exceeded 200,000 units for the first time in September. , reaching 201,300 units; from January to September this year, the cumulative sales of BYD’s new energy passenger vehicles exceeded 1 million units, reaching 1.175 million units.
A BYD insider told the 21st Century Business Herald reporter, “There are still hundreds of thousands of orders in hand, and production capacity is the main bottleneck. It is necessary to expand production capacity as soon as possible to ensure delivery, and at the same time focus on qualitative growth as much as possible.”
According to this trend, there is basically no suspense for BYD to complete the annual sales target of 1.5 million vehicles, and it is expected to hit 2 million vehicles. In the September passenger car manufacturer sales list released by the Passenger Car Association, BYD has become the sales leader, with a market share of 9.9%.
In terms of gross profit margin, according to Wind data, BYD’s gross profit margin reached 18.96% in the third quarter of this year, an increase of 5.63 percentage points year-on-year and 4.57 percentage points higher than that in the second quarter of this year, and profitability continued to improve.
In fact, in addition to the dazzling figures in the financial report, the reason for the rise in BYD’s profits is inseparable from the continuous increase in sales, and the gradual increase in bicycle profits under the scale effect.
It is understood that in the first half of 2021, BYD’s bicycle profit was only 828 yuan, but in the first half of this year, the bicycle profit was 4,500 yuan. Among them, in 2022, the profit of BYD bicycles in Q1 will be around 2,300 yuan, and the profit of BYD bicycles in Q2 will be around 7,300 yuan.
In addition, in February and March this year, BYD raised prices twice, ranging from 1,000 yuan to 7,000 yuan, which also improved its profitability. Due to the long delivery cycle of new cars, orders after the price increase were delivered on a large scale in the third quarter, driving up the profit per vehicle in the third quarter.
Huaan Securities pointed out in the research report that the main reasons for the continuous increase in BYD’s single-quarter profit include: first, the sales volume continued to grow month-on-month, and the scale effect continued to improve; second, since the third quarter, the company has gradually delivered hybrid models after the price increase. It is expected that after entering the peak sales season in the fourth quarter, the production capacity will be gradually released, and the monthly sales volume is expected to gradually reach a new high. At the same time, BYD has abundant orders on hand, and the delivery cycle of heavy-duty models is still long. It is expected that the single-vehicle profit will remain stable in the fourth quarter.
Soochow Securities expects that BYD’s bicycle profit in the fourth quarter still has room for a slight improvement, and the annual bicycle profit may reach 7,000 yuan, releasing profit flexibility; although there is a risk of subsidy decline next year, the company has large scale and cost reduction space, and it is expected that the bicycle profit will still be 10,000 yuan can be maintained.
In addition to the scale effect, BYD is also seeking higher profits by selling more expensive cars. The current price of BYD bicycles has increased to 190,000 yuan from 150,000 yuan last year. Different from the previous models that were concentrated in the price range of 100,000-200,000 yuan, the new versions of the Han series and Tang series released by BYD this year are priced at around 300,000 yuan, and the average transaction price of Han family bicycles exceeds 250,000 yuan; Exploring to 400,000 yuan; the new high-end brand will be launched at the end of this year or early next year, and the starting price of the first off-road model will exceed one million yuan.
While continuing to deepen the domestic market, BYD is also accelerating its overseas market layout this year. BYD passenger cars have now entered Japan, Singapore, Europe and other markets. The pre-sale price of BYD Tang and Han in Europe has reached 72,000 euros (about 520,000 yuan), nearly double the domestic price.
BYD sold a total of 7,736 new energy passenger vehicles overseas in September. BYD insiders recently said in an interview with the 21st Century Business Herald reporter and other media that the premium price of BYD passenger cars overseas is related to BYD’s popularity overseas. Previously, BYD’s pure electric buses were the first overseas. The first pure electric bus was overseas. The price is 700,000 US dollars. In 2015, the overseas price of BYD electric buses reached 1.1 million US dollars. In addition, the overseas prices of Chinese brand new energy vehicles are generally on the high side. In addition to tariff reasons, it is inseparable from the improvement of technology, performance and product power of Chinese new energy passenger vehicles.
BYD’s going overseas also means that its competition with Tesla has expanded to a global scale. Following the top spot in global new energy vehicle sales in the first half of the year, BYD continued to lead the global new energy vehicle market in the third quarter, and became the world’s first electric vehicle company with annual sales exceeding one million units before Tesla.
Although sales are not as good as BYD’s, Tesla’s profit is much higher than BYD’s, which sells for nearly 300,000 yuan. In the first three quarters of this year, Tesla achieved revenue of $57.14 billion (approximately RMB 414.4 billion), and net profit attributable to the parent was $8.87 billion (approximately RMB 64.3 billion).
Recently, Tesla, which has been under pressure in sales, once again raised the “price butcher knife” to drop the entire department, with a maximum drop of 37,000 yuan . The prices of the rear-drive entry-level Model 3 and Model Y dropped to 265,900 yuan and 288,900 yuan respectively. The new round of price war is not too much pressure on new energy vehicle companies including BYD.
In addition, BYD, which has been transformed by traditional car companies, has not shown much competitiveness in the field of intelligent and autonomous driving, nor has it given the market much room for imagination. Wang Chuanfu, chairman of BYD, said that intelligence is the second half of new energy vehicles, and will pay close attention to the development of intelligence.
Editor Jiang Peipei intern Luo Xinyu