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

On the evening of October 17, BYD released a forecast of its results for the first three quarters of 2023.

According to the report, BYD's net profit attributable to shareholders of listed companies in the first three quarters of this year was 20.5 billion-22.5 billion yuan, up 120.16% and 141.64% over the same period last year; net profit after deducting non-recurring profits and losses is expected to be 18.3 billion-20.2 billion yuan, an increase of 118.78%-141.49%; basic earnings per share are expected to be 7.06-7.74 yuan per share.

Among them, in the third quarter, BYD expects to achieve a net profit of 9.546 billion to 11.546 billion yuan belonging to shareholders of listed companies, an increase of 67 percent to 101.99 percent over the same period last year; net profit after deducting non-recurring profits and losses is expected to be 8.605 billion to 10.505 billion yuan, an increase of 61.29 percent to 96.9 percent over the same period last year; and basic earnings per share are expected to be 3.29 to 3.97 yuan per share.

According to the financial report, the net profit of BYD from 2019 to 2022 was 1.614 billion yuan, 4.234 billion yuan, 3.045 billion yuan and 16.622 billion yuan respectively, and the net profits in the first and second quarters of 2023 were 4.13 billion yuan and 6.824 billion yuan respectively. The above-mentioned third-quarter net profit exceeded 10 billion yuan, which will be the first time that BYD's quarterly net profit has exceeded 10 billion yuan after the first annual net profit in 2022.

With regard to the growth in performance, BYD said that in the third quarter of this year, the new energy vehicle industry continued to enjoy a good growth momentum, and its new energy vehicle sales continued to reach an all-time high, ranking first in global new energy vehicle sales. In other words, the sharp increase in revenue and profits of BYD is related to its strong performance in the car market.

At present, BYD has become the largest new energy car manufacturer in China, and its passenger car business section is composed of dynasty net, ocean net, momentum and high-end brands. Official figures show that BYD sold 2.0796 million vehicles in the first three quarters of 2023, up 75.48 per cent from a year earlier, and has achieved 69.32 per cent of its annual sales target of 3 million vehicles.

During the year, BYD launched a number of new cars, including Qin PLUS DM-i Champion, Han Champion, Tang DM-i Champion, Destroyer 05 Champion, Seal Champion, Song ProDM-i Champion and other models, which further boosted BYD's sales. In addition, BYD has also launched two high-end brands: look up and equation Leopard, covering a luxury new energy vehicle market ranging from 300000 to more than one million yuan. In other words, the price of BYD products ranges from one million luxury to 100000 yuan.

In addition to the gradual improvement of the product matrix, BYD has also accelerated the development of overseas cars. Since May 2021, BYD officially announced the plan of "passenger cars going to sea". So far, BYD has entered 55 countries and regions, including Japan, Germany, Australia, Brazil, the United Arab Emirates and so on. In addition, BYD is also speeding up the construction of overseas factories. In September, BYD set up a joint venture with the Uzbek State-controlled Automobile Group, with a planned annual production capacity of 50, 000 units in the first and second phases, and 300000 units when the third phase is completed.

So why can BYD quickly open overseas markets? "as a leading company in the new energy vehicle industry, BYD has more than 20 years of technology accumulation and has mastered the core technology of the whole industry chain of new energy vehicles, such as batteries, motors and electric controls, which gives us a deep insight and understanding of the technological change and strategic layout of the industry," a relevant BYD official said in an interview. "

Data show that from January to September this year, BYD sold 145400 vehicles overseas, including more than 28000 new energy passenger cars in September. According to the plan, BYD's overseas exports are expected to be 25-300000 vehicles in 2023, and the export volume may reach 1 million vehicles next year.

Wang Chuanfu, chairman and president of BYD, has said that the automotive industry has entered the knockout stage and great changes will take place in the next three to five years. For enterprises, core technology, good strategic direction and rapid decision-making mechanism are the key to success. BYD is confident of gaining a higher market share in the next three to five years.

Or due to the expected sharp increase in the first three quarters, BYD A shares rose 0.21% to close at 238 yuan per share, with a market capitalization of 692.9 billion yuan, while Hong Kong shares rose 0.17% to 240.8 Hong Kong dollars per share, with a market capitalization of 701 billion Hong Kong dollars.

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