On the evening of October 12, BYD updated its "report card", and it is expected to achieve a net profit attributable to shareholders of RMB 3.4 billion to RMB 3.6 billion in the first three quarters, a year-on-year increase of 115.97%-128.67%, and was expected to increase by 77.86%-90.56%.
Source: Company Announcement
BYD stated that in the third quarter, the domestic COVID-19 epidemic prevention and control situation continued to improve, and the automobile sector business achieved recovery growth, especially the sales of new energy vehicles achieved rapid bottoming out and rebounding.
At the same time, the mobile phone parts and assembly business also had "surprises". The company said it had successfully introduced new global leading manufacturers of mobile phones and other smart products, and its business scale further expanded.
New energy vehicles are making rapid progress
New models "Han" and "Tang" are two major achievements.
BYD said that during the reporting period, the company's new energy vehicle sales achieved rapid growth. Among them, the new flagship model "Han" became a hot-selling model in the domestic high-end new energy vehicle market as soon as it was launched. The number of orders continued to rise and sales continued to grow; the company's faced flagship model "Tang" grew rapidly, ranking among the top in the same class of models. The two flagship models have promoted the company's new energy passenger car business to achieve faster growth.
According to the sales report, the company sold 19,881 new energy vehicles in September, a year-on-year increase of 45.3% and a month-on-month increase of 30.1%. Among them, the sales of new energy passenger cars were 18,603 units, a year-on-year increase of 42.6%. In terms of mobile phone parts and assembly business, BYD said that during the reporting period, the share of major customers continued to increase, and the global leading manufacturers of new mobile phones and other smart products were successfully introduced. The shipments of glass ceramics and new smart products grew rapidly, promoting the further expansion of the business scale. Benefiting from the improvement of overall operational efficiency and the optimization of product structure, further improving profitability.
OEM business growth may be related to Apple . In mid-September, some media reported that BYD indirectly controlled subsidiary BYD electronic OEM Apple new iPad. Since then, BYD closed sharply for several days and once hit the daily limit.
In fact, as early as January this year, Tianfeng International analyst Ming-Chi Kuo released a research report pointing out that it is expected that BYD electronics will replace Quanta as the exclusive assembly supplier of iPod Touch in 2020, and will obtain at least 10%-20% of iPad assembly orders. The above order transfer is of great significance to BYD electronics. Guo Mingchi believes that although the annual shipment of iPod Touch is only about 6 million to 8 million units, becoming the exclusive supplier means that the cooperative relationship between Apple and BYD electronics is closer.
html cumulative increase of 170% in 5 years
As early as before the performance forecast, BYD has attracted much attention in the secondary market.
On October 12, the share price of BYD hit a new high, rising 6.77% on the same day, closing at 128.50 yuan, with a transaction amount of 6.521 billion yuan. This is the fifth consecutive trading day for BYD to rise.
Source: Oriental Fortune
This may be related to the new energy industry's major positive policies. On October 9, the State Council Executive Meeting passed the "New Energy Vehicle Industry Development Plan", which clarified the decisive role of the market in resource allocation, strengthened the dominant position of enterprises in technical route selection, and better played the role of the government in formulating standards and regulations, quality and safety supervision, etc., which is conducive to guiding the orderly development of the new energy vehicle industry, promoting the establishment of a unified national market, and improving industrial concentration and market competitiveness.
CICC believes that with the domestic market, Tesla model3, BYD Han, Xiaopeng P7 and other hot-selling models increased in volume and strengthened support policy expectations, the domestic market showed a trend of both production and sales, and some links started a price increase model, and the performance expectations of the industrial chain in the third quarter improved significantly month-on-month. Some links (such as electrolyte solvents, lithium hexafluorophosphate, lithium battery copper foil) showed a situation of both volume and price increase. The industry leaders benefited from the increase in concentration and the trend of large customers increasing in volume.
Since September 1, in just over a month, BYD has risen by 51% cumulatively. Since the beginning of this year, the share price of BYD has risen by 170%.
New energy vehicles continue to increase in volume, and it is expected that
Looking to the future, many industry analysts said that BYD new energy vehicles still have a lot of room for improvement in the next few months.
Anxin Securities pointed out that with the start of new production lines in Chongqing and Changsha factories, the production capacity of blade batteries is gradually increasing, and the production capacity of silicon carbide modules is also increasing. Therefore, the problem of insufficient production capacity of Han EV will be gradually alleviated and the delivery speed of orders will be accelerated. At the same time, Han DM's product strength is strong, with outstanding performance, fuel consumption, interior, space, etc., and demand still has great potential for upward trend.
CITIC Securities analyzed that "Han" sales continue to climb, and it is expected to continue to increase. By car model, it is expected that the company's model structure will also improve: the proportion of high-end models "Han" and "Tang" has increased, and the proportion of lower-priced e5 and "yuan" models has decreased. Among them, Han sold 5,612 units in September, an increase of 40% month-on-month. Based on this, Han's cumulative sales volume is about 10,800 units. If we look at the scale of 30,000 units throughout the year, it corresponds to an average monthly sales volume of 6,400 units in the fourth quarter. The possibility of a company reaching this scale is high, mainly depending on the capacity release. According to the company, Han EV is still in short supply due to blade batteries and silicon carbide materials, and the supply of models is in short supply. Therefore, when the subsequent shortage of parts is alleviated, "Han" still has the potential to continue to increase volume.
In addition, in addition to "Han", BYD Song PLUS was also launched on September 16. Anxin Securities believes that key models such as Song Plus EV, Tang EV, Qin, Qin Pro, D1, and Yuan, which have entered the announcement of the Ministry of Industry and Information Technology and are equipped with blade batteries, are expected to be launched or delivered in the fourth quarter, which can bring a significant sales contribution to the company by then.
Edited by: Wang Yin
