BYD’s profit per bicycle in the first three quarters was 0.24, 0.7 and 9,500 yuan, and Q4 is expected to break through the 10,000-yuan mark
On the evening of October 28, BYD announced its results for the third quarter of 2022. In the first three quarters of 2022, BYD achieved an operating income of 267.688 billion yuan, a year-on-year increase of 84.37%, and a net profit of 9.311 billion yuan attributable to the parent, a year-on-year increase of 281.13%. Median previously announced。Among them, in the single quarter of the third quarter, BYD’s operating income reached 117.08 billion yuan, a year-on-year increase of 115.59% and a month-on-month increase of 39.7%. The net profit attributable to the parent was 5.716 billion yuan, a year-on-year increase of 350%. and operating income both hit quarterly record highs. In addition, the gross profit margin and net profit margin also increased year-on-year to varying degrees, reaching the highest value in the past two years, increasing by 4.57 and 1.56 percentage points month-on-month to 18.96% and 5.17% respectively.
The two most conspicuous points are that BYD’s operating cash flow in the third quarter has continued to improve, with a net amount of 91.037 billion yuan, an increase of 47.85 billion yuan compared with the second quarter. It is expected to exceed 100 billion yuan for the whole year. In the third quarter, the profit of bicycles reached 95 million yuan, which is only one step away from the 10,000 yuan mark, and it is likely to be realized in the fourth quarter.
1. The operating cash flow in the third quarter is nearly 100 billion, and the profit per bicycle is as high as 9,500 yuan
Although BYD’s new energy vehicles were not in a state of losing money by selling one car like many new car-making forces, the previous meager profit per bicycle also made BYD wear the hat of increasing revenue but not profit for at least three years. It’s been a while, but that’s about to change completely this year.
Looking at the overall profit level first, BYD’s single-quarter profit in the third quarter reached 5.716 billion yuan, a year-on-year increase of 350%, and a month-on-month increase, which has exceeded its profit level in the first half of 2022 (3.595 billion yuan) and the whole of 2021. The profit level (3.045 billion yuan) exceeded market expectations. Obviously, along with the high sales growth of BYD’s auto products, profits also began to turn around.
look againThe profit level of a single vehicle, in the first three quarters of this year, combined with BYD’s 285,000, 354,000 and 539,000 vehicles and the corresponding quarterly profits (BYD Electronics’ profit in the first three quarters was 1.237 billion yuan, and the profit in a single quarter was 600 million yuan. Therefore, the profit of BYD’s auto business in the third quarter is roughly estimated at around 5.1 billion yuan.), BYD’s single-vehicle profits in the first three quarters of this year reached 2,400 yuan, 7,000 yuan and 9,500 yuan respectively, and there is a great probability that the fourth quarter will exceed 10,000 yuan. Yuan mark.
In addition, BYD’s operating cash flow in the third quarter has also continued to improve, with a net amount of 91.037 billion yuan, an increase of 47.85 billion yuan compared with the second quarter, and is expected to exceed 100 billion yuan for the whole year. According to Wall Street’s knowledge and wisdom research, the reasons behind the high cash flow of BYD’s operating activities and the rapid rise in single-vehicle profits are as follows:
1) The proportion of high-priced new energy vehicles increased
The price of BYD’s previous new energy vehicle models is actually relatively close to the people. Many of these hot models, such as BYD Qin PLUS, BYD Yuan PLUS, Dolphin, BYD Song and other models, have a price range of around 100,000-150,000 yuan, which can really enter the 20-year range. The high-priced models above 10,000 are mainly BYD Han, Seal, BYD Tang EV and DMp, as well as the follow-up Denza D9.
and theseHigh-priced, high-profit models are expected to occupy a larger and larger share of BYD’s sales volume. Here is an example of the BYD Han, a popular model that is also BYD’s first model to enter high-end models. The sales in the first three quarters of this year The proportions are 12.07%, 17.74% and 15.5% respectively (13.6% in the same period in the third quarter of last year, but it is necessary to consider the variable that BYD’s fuel vehicles still accounted for about 18.4% last year, not all new energy vehicles).
2) The price increase effect in the first and second quarters is fully exerted in Q3
In the first and second quarters of this year, BYD raised the prices of its new energy models to varying degrees. In February, the price of each model was increased by 1,000 yuan to 7,000 yuan, and in March, it increased by 3,000 yuan to 6,000 yuan. It covers almost all of BYD’s new energy vehicle products, and finally raised the price of some online car-hailing models in April.
The effect of price increases on BYD’s bicycle profit has actually been reflected in the second quarter of this year. The bicycle profit increased by 190% month-on-month. However, considering the length of BYD’s car delivery cycle and the increasing product sales in the third quarter, The full force of the price increase effect is still concentrated in the third quarter. In the third quarter, it is obvious that more models after the price increase can be delivered, and this almost helped BYD’s single-vehicle profit break the 10,000 yuan mark for the first time.
3) The large-scale effect ferments rapidly
As an asset-heavy industry, the automobile industry requires a large amount of capital investment for the investment and construction of factories and production lines, and in the later stage, capital is needed to expand production, and many fixed costs in vehicle manufacturing, such as depreciation of fixed assets and amortization of intangible assets, etc. , it is possible to reduce the cost of a single vehicle through the more and more large-scale mass production and sales of automobile products.
BYD’s sales of new energy vehicles in the first three quarters of this year have reached 1.178 million units. There is no pressure to break through the 1.5 million unit mark this year, and the monthly growth rate is as high as 20,000 units. In the face of such a sales growth rate and absolute value of sales, BYD Some of the fixed costs of bicycles can indeed be reduced rapidly.
2. Overseas market development and several cities
This year is the first year for BYD to enter the overseas new energy vehicle market. In the third quarter of this year, especially in July, BYD began to release news about the entry of new energy vehicles in at least one country every month.
Due to the obvious exclusionary trend of the IRA policy in the United States, BYD’s overseas market development is mainly concentrated in Asia and Europe, among which countries with low penetration rate but great potential such as Japan and Thailand are selected (Japan New Energy in the first half of this year). The sales volume of automobiles is only about 34,000 units, with a penetration rate of 3%. The sales volume of new energy vehicles in Thailand is about 10,000 units, and the penetration rate is only 2.6%. Several auto market powerhouses or new energy pioneers such as Germany, France, Norway and Sweden, etc. (These countries in Europe are supported by subsidies for new energy vehicles, and some countries are among the best in terms of new energy penetration rates).
Judging from the current overseas sales of BYD in the third quarter, although the overall base is low, the sales growth trend has already emerged. In the third quarter, BYD’s overseas sales reached 16,854 units, of which 4,026 units were sold in July, 5,092 units in August, and 5,092 units in September. 7736 vehicles, the monthly growth rate has increased significantly. BYD is very likely to successfully gain a large market share in the domestic new energy vehicle market and maintain sales growth, while opening a new situation in the overseas new energy vehicle market and breaking out new growth points.
In addition, in addition to the rapid growth of sales in the field of new energy vehicles, BYD also has a relatively large increase in the power battery and energy storage battery industries. In the first three quarters of this year, BYD’s domestic power battery installed capacity has basically stabilized at about 20% of the market share (16% in the same period last year)
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