BYD’s sales in the first three quarters exceeded Tesla’s net profit, which has exceeded the total profit of the past three years

After the single-month sales in September exceeded 200,000 units and won the championship, BYD delivered a Q3 transcript that exceeded expectations.

On October 28, BYD’s third-quarter performance report disclosed that the net profit attributable to the parent company in the first three quarters of this year was 9.311 billion yuan, a year-on-year increase of 281.13%; among them, the net profit attributable to the parent company of BYD in the third quarter alone was 5.716 billion yuan, which is more than The 1.27 billion yuan in the same period last year increased by 350.26% year-on-year.

The data shows that 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. In contrast, in the third quarter of this year, BYD’s net profit attributable to its parent company exceeded that of last year; at the same time, the net profit attributable to its parent company in the first three quarters of this year hit a record high, exceeding the total net profit attributable to its parent company in the past three years.

BYD previously stated in its performance forecast that in the third quarter of 2022, despite multiple unfavorable factors, the new energy vehicle industry continued to accelerate upward. The sales volume of new energy vehicles maintained strong growth and continued to hit new highs. The market share was leading and continued to strengthen, achieving substantial year-on-year and month-on-month growth, driving a substantial improvement in profitability and effectively alleviating the profit pressure caused by rising upstream raw material prices.

A number of institutions have expressed optimistic expectations for BYD’s future performance. Credit Suisse expects BYD’s strong earnings momentum to continue in the fourth quarter, with sales expected to increase by 173% year-on-year to 727,000 units, driving a record fourth-quarter net profit of about 6.5 billion yuan. Essence Securities Research Report pointed out that BYD’s third-quarter results exceeded expectations, and the fourth-quarter results are expected to exceed expectations again.

Sales in the first three quarters surpassed Tesla, and the scale effect supported high performance growth

New energy vehicles have become the backbone of BYD’s performance.

According to BYD’s 2022 semi-annual report, in the first half of this year, the proportion of revenue from automobile-related products has reached 73%, and the proportion of revenue from mobile phone-related products has dropped to 27%. In the third quarter of this year, BYD’s operating income increased by 115.59% year-on-year to 117.081 billion yuan, and the operating income in the first three quarters achieved 267.688 billion yuan, an increase of 84.37% compared with the same period last year. BYD said in its third quarterly report that the increase in operating income was mainly due to the increase in the new energy vehicle business.

The reporter found that in the only 10-page third-quarter performance report, the descriptions “mainly due to the increase in the new energy vehicle business” or “the increase in the sales of the new energy vehicle business” appeared 7 times.

Since it stopped producing fuel vehicles in March this year, BYD’s monthly sales have remained above 100,000 units, ranking first in domestic new energy passenger vehicle sales. In September, BYD’s new energy vehicle production and sales reached 204,000 and 201,000 units respectively, both breaking the 200,000 mark, an increase of 188.1% and 183.1% year-on-year respectively.

Thanks to the continuous popularity of its Han, Yuan, Dolphin and other models, BYD’s cumulative sales in the first three quarters reached 1.1851 million units, a year-on-year increase of 161.76%, surpassing Tesla’s global sales of new energy vehicles in the first three quarters, 1.5 million Only 315,000 vehicles remain in the annual target.

Driven by sales, BYD’s share in the domestic new energy passenger vehicle market has also gradually increased. According to the statistics of the Passenger Federation, in the first three quarters of this year, BYD ranked first in the domestic new energy passenger vehicle retail market with a market share of about 30%, which is equivalent to about 3 of every 10 new energy passenger vehicles sold. .

“Compared with the fact that the annual sales volume of new front-line car manufacturers is still hovering around 100,000 units, BYD’s sales have exceeded one million units in the first 9 months, and its new energy models are still increasing.” China Bolian Think Tank Distinguished Expert, Yellow River Technology Zhang Xiang, a visiting professor at the college, said that through the scale effect, BYD’s performance has achieved rapid growth.

With the rapid growth of new energy vehicle sales and the gradual increase of scale effect, BYD’s cost of bicycles continues to decline, and the profit per bicycle continues to rise. Data shows that in the first half of 2021, BYD’s bicycle profit was only 828 yuan, but in the first half of this year, BYD’s average bicycle price exceeded 170,000 yuan, and the bicycle profit was 4,500 yuan.

The research report of CITIC Construction Investment believes that the price increase of BYD’s products in the first quarter was further concentrated in the third quarter; BYD’s product structure has improved, and a number of high-value new models have been launched in large quantities, such as the new Han, new Tang, seal, frigate 07, etc. The average price is expected to increase; the sales volume will continue to grow in the second half of the year, and the scale effect will continue to strengthen.

Accelerating the pace of going overseas, can exports open up new growth space?

After successive breakthroughs in domestic market sales, BYD turned more attention to overseas markets.

In July this year, BYD Japan Branch held a press conference in Tokyo, announcing its official entry into the Japanese market. Yuan PLUS, Dolphin and Seal will be sold in the Japanese market in January 2023; on August 9, BYD and RÊVER Automotive held a brand conference in Bangkok, announcing their official entry into the Thai passenger car market; on August 13 , BYD and Uniasia United (Cambodia) Trading Co., Ltd. held a launch conference for Yuan PLUS in Cambodia.

According to incomplete statistics, in the passenger car segment, BYD vehicles have been exported to Japan, Thailand, India, Brazil and other countries and regions. After the export volume increased significantly, from July this year, BYD began to disclose the sales data of overseas new energy passenger vehicles in its production and sales bulletin.

Data show that from July to September, BYD sold 4,026, 5,092 and 7,736 new energy passenger vehicles overseas respectively, of which sales in August and September increased by 26.48% and 51.92% month-on-month respectively.

On October 17, BYD unveiled three electric models of Tang, Han and Yuan PLUS (the local model is called BYD ATTO 3) at the Paris Auto Show. At the same time, BYD started product delivery in many European countries, including Norway, Denmark, Sweden, the Netherlands, Belgium, Germany and other countries. According to its plan, before the end of this year, BYD will further develop the French and British markets.

Wang Chuanfu, chairman of BYD, once said at the 2021 annual shareholders meeting that the company will intensify efforts to expand overseas markets in the future, and use some scarce resources to expand the global electric vehicle market.

Zhang Xiang pointed out that BYD is currently in a state of rapid development, and its production capacity is also expanding at an accelerated pace, and its export capacity can be digested overseas. At the same time, China has the world’s largest new energy vehicle market and a complete new energy vehicle industry chain. China’s new energy vehicles have a competitive advantage in exporting overseas. “By taking advantage of this opportunity, BYD will definitely go out and become a global company and participate in international market competition.”

“BYD has core technologies in the core components of new energy vehicles such as batteries, chips, and motors, which is its advantage in going global. However, compared with the planning and layout of Volkswagen, Toyota and other car companies in the global market, BYD has There is still a lot of room for development.” Zhang Xiang said.

The Beijing News Shell Finance reporter Zhang Bing edited Yue Caizhou proofreading