AutoBeta(AutoBeta.net)10/18 Report--

On October 17, BYD released a forecast of its results for the first three quarters of 2022, which estimated that the net profit attributable to shareholders of listed companies in the first three quarters was 9.1 billion yuan to 9.5 billion yuan, an increase of 272.48% Mu 288.85% over the same period last year. Net profit after deducting non-recurrent profits and losses was 8.1 billion yuan to 8.8 billion yuan, an increase of 813.80% RMB892.77% over the same period last year. In the third quarter, the company expects the net profit attributed to shareholders of listed companies to be 5.505 billion yuan to 5.905 billion yuan, an increase of 333.60% to 365.11% over the same period last year, and net profit after deducting non-recurring profits and losses is 5.07 billion yuan to 5.77 billion yuan, an increase of 879.37% to 1014.57% over the same period last year.

Or affected by the news, BYD A shares closed today at 273.67 yuan per share, an increase of 4.99%, with a total market capitalization of 796.692 billion.

BYD said that in the third quarter of 2022, despite the complex and severe economic situation, the spread of the epidemic, extremely hot weather and high commodity prices and other adverse factors, the new energy vehicle industry continued to accelerate upward. The company's sales of new energy vehicles maintained strong growth, continued to hit an all-time high, the market share was far ahead and continued to strengthen, achieving substantial growth compared with the same period last year and month-on-month, promoting a substantial improvement in profitability, effectively alleviating the profit pressure brought about by rising prices of upstream raw materials. At the same time, it pointed out: in terms of mobile phone components and assembly business, the consumer electronics industry demand is still weak, but the company has benefited from improved cost control capabilities and product restructuring, profitability has improved.

It is understood that BYD's business is mainly divided into three major business sectors, namely, automotive business, mobile phone components and assembly business, rechargeable batteries and photovoltaic business. According to the first-half results released by BYD earlier, BYD's revenue from its automobile, related products and other products business in the first half of the year was 109.267 billion yuan, an increase of 130.31% over the same period last year, with a gross profit margin of 16.30%. Revenue from mobile phone parts, assembly and other products was 4.107 billion yuan, down 4.78% from the same period last year, with a gross profit margin of 6.08%. It is not hard to see a growing share of BYD's auto business, and sales of new energy vehicles have soared since BYD announced the suspension of fuel vehicles on April 3 this year. According to KuaiBao, BYD's production and marketing, new energy vehicle sales in September were 201259, compared with 71099 last year, a cumulative increase of 249.56 per cent compared with the same period last year. The output of new energy vehicles reached 204893 in September, compared with 71115 in the same period last year, a cumulative increase of 248.74 percent over the same period last year.

At present, BYD New Energy has pure electric vehicles and plug-in hybrid models on sale, with product prices covering the range of 10-300000 yuan. As early as March this year, BYD Wang Chuanfu revealed: "conservatively estimated that BYD's order this year will reach 1.5 million vehicles, if the supply chain is done well, the order may impact 2 million vehicles." As for BYD's sales target for this year, many organizations have also given annual sales forecasts of 2 million vehicles for the whole year, mainly due to the steady increase in the penetration of new energy vehicles. In addition, due to BYD's investment in hybrid and pure electric technology routes and intensive new car launches this year.

Against the backdrop of skyrocketing sales, BYD has been accelerating its global business recently. On July 8, BYD Yuan PLUS was listed as ATT O3 in Singapore, realizing the debut of ASEAN countries. On July 5, BYD announced that it had reached a strategic cooperation with European car dealer group Louwman to jointly develop the Dutch new energy vehicle market, and the first offline store in Amsterdam also opened in September. On July 21, BYD announced its official entry into the Japanese passenger car market, and simultaneously unveiled three pure electric models, namely Yuan PLUS, Dolphin and Seal, with Yuan PLUS expected to go on sale in January and Dolphin and Seal in mid and late 2023, respectively; and on August 1st, BYD announced a partnership with European dealer group Hedin Mobility to provide new energy vehicles for the Swedish and German markets.

At the end of September, BYD launched the Han, Tang and ATTO 3 models at an online launch in Europe, and signed a cooperation agreement with SIXT, Europe's largest car rental company, to supply at least 100000 new energy vehicles in the next six years. On October 11, BYD held a brand conference in New Delhi, India, announced its official entry into the Indian passenger car market, and launched the first high-end pure electric SUV yuan PLUS. On October 17th, BYD unveiled its three Tang, Han and Yuan plus European electric models at the Paris Motor Show, and opened delivery in many European countries, including Norway, Denmark, Sweden, the Netherlands, Belgium, Germany and other countries. With the layout of BYD's overseas market, it will also become an important growth point of BYD's sales in the later period.

However, with the rapid growth of sales, BYD's capacity problems will also intensify. Although BYD is the largest new energy car manufacturer in China, it has production bases in Shenzhen, Xi'an, Changsha, Changzhou and Fuzhou. Even so, it is still in short supply in the market, especially the BYD Song Pro model, because the number of complaints caused by failure to pick up the car on time is far higher than that of other models. In addition, Shanghai plug-in and add-on models will no longer enjoy the green card policy from next year. It may have an impact on BYD, which sold 106705 plug-in hybrids in September, according to its September sales figures.

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