AutoBeta(AutoBeta.net)04/27 Report--

On April 27, BYD Co., Ltd. (hereinafter referred to as "BYD") released its first-quarter results showing that its operating income in the first quarter of 2022 was 6.68 billion yuan, an increase of 63.02% over the same period last year; the net profit attributed to shareholders of listed companies was 808 million yuan, up 240.59% from the same period last year; and 514 million yuan was deducted from non-net profit, an increase of 729.44% over the same period last year. According to the report, 193 million yuan was subsidized by the government in the current period.

According to data, BYD was founded in 1995, listed on the Hong Kong Stock Exchange in 2002 and listed on the Shenzhen Stock Exchange in 2011. BYD started as a battery business, acquired Qinchuan Automobile in 2003 and officially entered the automobile industry, launching its first model, the F3, in 2005. Before 2010, with the development of China's automobile industry, BYD's car sales also rose, and the automobile business ushered in a highlight moment of development. After 2010, BYD began to enter a bottleneck and did not surpass 2010 sales for the first time until 2021. Prior to this, BYD released an annual report showing that it achieved an operating income of 216.142 billion yuan in 2021, a net profit of 3.045 billion yuan belonging to shareholders of listed companies, and cumulative annual sales of 740100 vehicles.

It should be noted that BYD is not just an automobile company, it has three business segments: car business, mobile phone parts and assembly business, rechargeable battery and photovoltaic business, but BYD did not disclose the performance of each major business in the first quarter. Referring to the financial report for 2021, the three sectors accounted for about 52%, 40% and 8% of the company's total revenue, respectively, of which the revenue from the automobile, automobile-related products and other products business was 112.489 billion yuan, an increase of 33.93% over the same period last year. It is the main source of business income of BYD.

According to the data, BYD sold 291400 vehicles in the first quarter, up 179.78 percent from the same period last year, including 284700 new energy passenger vehicles, up 433.42 percent from the same period last year, and 5049 fuel vehicles, down 89.78 percent from the same period last year. Unlike in 2021, BYD achieved an increase in revenue and net profit as car sales increased. From the market point of view, BYD's newly launched Qin PLUS DM-i, Song PLUS DM-i, Tang DM-i and other DM-i super hybrid models are widely sought after by the market, but the above models are only launched in the second quarter, so BYD's performance in the same period in the first quarter of 2022 is relatively poor, which is due to the growth of BYD's new energy vehicle sales in January 2021. As for the increase in net profit, BYD announced two price increases for products in the first quarter, the first because of the decline in subsidies for new energy vehicles, and the second because of the rise in raw material prices. For BYD, the whole industry chain self-research can make BYD's cost control better, while the price increase will share the cost pressure with consumers. Galaxy Securities said that BYD's advantages of the whole industrial chain are gradually emerging, superimposed on the completion of mid-and high-end product matrix and the scale effect brought by product volume, the loss of its new energy vehicles has been basically reversed, and the company's profitability is expected to continue to improve. Performance improvement is expected.

It is worth mentioning that BYD announced on April 3 that it would stop production of fuel-fueled vehicles from March and that the company would focus on pure electric and plug-in hybrid vehicles in the future. For BYD, stopping production of fuel vehicles is not only in line with the development of the market, but also the inevitable trend of the transformation of BYD's automobile sector. compared with fuel cars, BYD's new energy vehicles continue to sell well in the market, and the problem of "not mentioning cars" continues to haunt car buyers.

As for the next market performance, BYD revealed in the minutes of the investor meeting after the release of the 2021 results that the cumulative outstanding orders of BYD reached 400000 vehicles and is still increasing month by month. As a result, BYD conservatively expects to sell 1.5 million vehicles in 2022; if the supply chain improves, it will hit the sales target of 2 million vehicles. According to the minutes of the meeting, BYD Han DM-i has a good sales order after its launch, and it is expected that the Han series will sell more than 30, 000 vehicles a month. BYD said that the current growth trend of raw material prices is slowing, and if the price of lithium carbonate remains at the current level, it will not have much impact on the sales of new energy vehicles this year. In addition, BYD is also further expanding the high-end market, launching high-end brands, the price range is expected to be more than 500000-1 million yuan. After the change of ownership, the brand will also put a new car on the market in 2022. According to the plan, Tengli will launch three new models in the Chinese market in the next two years, including the MPV and SUV.

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