Shulou(Shulou.com)11/24 Report--

Make a profit of more than $10 billion in a single quarter

Author | Wang Lei Chumen

Daily income is more than a "small goal", BYD's Q3 financial report, very split.

On the evening of October 30, BYD released its third-quarter results, with Q3's total revenue of 162.151 billion yuan and net profit of 10.413 billion yuan. As a result, BYD earned 115 million a day in the third quarter.

The high profit means that more cars are sold.

From July to September, BYD sold 262200, 274400 and 287500 new energy vehicles respectively, with a total of 824000 new cars sold in the third quarter.

At the same time, Q3's single-quarter profit rose 82.16% from a year earlier, directly contributing half of the first three quarters.

There is no doubt that BYD is becoming the most profitable car company in the country.

01. The total revenue of BYD Q3 which exceeded 10 billion yuan per quarter reached 162.151 billion yuan, an increase of 38.49 percent over the same period last year. The net profit belonging to shareholders of listed companies was 10.413 billion yuan, an increase of 82.16 percent over the same period last year.

While the net profit of BYD H1 is only 10.9 billion yuan, the net profit of Q3 in a single quarter is as high as 10.413 billion yuan, which is basically the same as H1. At the same time, this is the first time that BYD has made a net profit of more than 10 billion yuan in a single quarter, and it is also another milestone after BYD's net profit exceeded 10 billion yuan for the first time in 2022.

However, BYD's net profit growth slowed in the third quarter, compared with 410.89% year-on-year growth in the first quarter and 144.87% in the second quarter of this year.

Thanks to the outbreak of Q3 performance, BYD achieved revenue of 422.275 billion yuan in the first three quarters, up 57.75% from a year earlier. The net profit was 21.367 billion yuan, up 129.47% from the same period last year.

BYD said the revenue growth was mainly due to an increase in sales of new energy vehicles. Q3 BYD sold a total of 824000 new cars, with cumulative sales of more than 2.0796 million in the first three quarters, up 76 per cent from a year earlier.

There are 750000 more than Tesla's 1.32 million.

In terms of energy, the cumulative sales of DM hybrid models are about 1.0218 million, up 72 per cent from the same period last year.

Behind the rapid growth of performance is BYD's R & D and investment in technology. According to the announcement, Q3 BYD's R & D investment was 11.1 billion yuan, an increase of 103.9% over the same period last year.

Tesla, who released his financial results not long ago, spent a total of US $1.161 billion, or about 8.5 billion yuan, on R & D in the third quarter, an increase of 58.39% over the same period last year, which is almost the sum of the R & D expenses of several new car-building forces, but it is still close to that of BYD.

In the first three quarters of this year, BYD's total investment in R & D was 24.938 billion yuan, an increase of 129.42% over the same period last year. As of the first three quarters of this year, Tesla's investment in research and development was 2.875 billion US dollars, or about 21.04 billion yuan.

Wang Chuanfu has said that high R & D is a characteristic of BYD's development. In the last 12 years, BYD's R & D investment in 11 years has exceeded the net profit of that year, and in many cases it is even three or four times the net profit. In other words, willing to spend money in order to make more money, R & D investment in excess net profit is the norm for BYD.

02, bicycle profits exceeded 10, 000, the battery business jumped in the market and investors are most concerned about the gross profit, BYD also handed over a good report card.

BYD's gross profit margin rose from 20.7 per cent and 21.6 per cent in the first and second quarters of this year to 22.2 per cent in the third quarter, higher than Tesla for the third consecutive quarter and exceeding 20 per cent in a single quarter for the first time in nearly three years.

Tesla's gross profit margin has fallen from 19.3% in the first quarter to 15.7% in the third quarter, affected by the price cut.

According to BYD's homing net profit of 10.413 billion yuan in the third quarter, after deducting BYD's 1.528 billion yuan, its automobile business makes a profit of about 8.885 billion yuan in a single quarter. Based on sales volume, it can be estimated that BYD's bicycle profit broke through the 10,000 yuan mark, an increase of about 57% year-on-year and more than 30% month-on-month growth.

In the first half of this year, BYD's bicycle profit was still about 7500 yuan. From this point of view, Dizi will make more and more money.

For comparison, the net profit of Tesla Q3 was about 25000 yuan, down 86.48 percent from the same period last year. Tesla's net profit margin for bicycles was 7.94%, down 48.28% from a year earlier, while BYD was 6.86%, up 32.87% from a year earlier.

Obviously, the gap between the two sides is narrowing, but now BYD's bicycle profit is still not as good as Tesla.

However, BYD's millions of luxury cars look up to the U8, and the equation Leopard, which sells for more than 300000, will be available in the fourth quarter, with higher gross margins and higher overall profit margins for products with higher starting prices.

In addition, thanks to the growth in sales of its own new energy vehicle products, BYD's "self-made" power batteries have also ushered in a "big sale", making BYD's battery business successfully ranked second.

According to the financial report, in the first three quarters of 2023, BYD installed a total of 100.9 GWh of power batteries and energy storage batteries worldwide, surpassing the former second-born LG New Energy to become the runner-up in global power battery installation.

In the domestic market, BYD's power battery installation reached 74GWh, an increase of 71.85% over the same period last year, making it the fastest growing power battery manufacturer in the domestic market, and its market share rose 6.71% year-on-year to 28.94%, narrowing the gap with the Ningde era.

At this time last year, BYD's market share was 25.3 percentage points less than in the Ningde era, and by the end of the third quarter, BYD's battery market share was only 13.8 percentage points lower than in the Ningde era.

Even, BYD has surpassed the Ningde era in the field of lithium iron phosphate batteries, ranking first with 73.99GWh installed capacity and 42.56% market share.

03, the most critical last quarter as of the third quarter of this year, BYD's cumulative sales this year has exceeded 2 million vehicles to 2.0796 million vehicles, an increase of 76% over the same period last year, and has now achieved 69.3% of its annual sales target. It is still 920000 short of the target of 3 million set at the beginning of the year.

There is still one last quarter left, that is, for the next three months, BYD needs to sell an average of 306000 vehicles a month to reach the KPI.

To resume the previous sales growth trend of BYD, since June this year, BYD's sales began to stabilize at more than 250000 vehicles, and the monthly sales growth can reach more than 10,000 vehicles.

According to this growth trend, BYD can guarantee a bottom-out growth of nearly 900000 vehicles in the remaining three months, but there is still a gap of 920000.

It is also important to note that BYD's overall sales in September were 287500, up 4.7 per cent from August, but down slightly from the 5 per cent month-on-month growth last month.

As for how to keep refreshing sales and continue to make money. BYD gives two answers: improving the brand layout and speeding up the process of going out to sea.

In the first half of the year, BYD released a new high-end brand "look up", aiming at the million-yuan new energy market. Not long ago, BYD's new personalized brand was officially named "equation Leopard" and released its first model, Leopard 5.

So far, in terms of brand building, BYD intends to form a multi-brand gradient layout constructed by BYD brand, momentum brand, look up and equation Leopard brand in the field of passenger cars, covering all areas from household to luxury, from Volkswagen to personalization.

After the layout is settled, the key node is in the last quarter of this year.

According to BYD's plan, U8 is scheduled to be delivered one after another in the middle of the third quarter of this year, and when the price reaches the level of one million, the order volume has exceeded 30,000 units, which is enough to show the popularity of looking up.

Equation Leopard 5, which was just released some time ago, the lower price also has greater market potential than looking up, and will start delivery within this year.

Even the BYD dynasty series, the new Song L, which has not launched an all-new model for a long time, is poised to position a medium-sized all-electric SUV, which is more high-end than the existing Song series and is expected to be released and launched this year.

These new models, which have been unveiled but have not yet been delivered, are a further bargaining chip than YD's sales.

In addition, as the domestic new energy vehicle market approaches saturation, overseas markets have become the key to promoting sales and profit growth. Going out to sea has become a new growth pole for BYD.

According to the China Automobile Association, BYD's exports totaled 154000 vehicles in the first three quarters of this year, ranking eighth among all car companies, with the fastest year-on-year increase of 5.2 times among the top 10 vehicle exporters.

As BYD's first "strategic sea" global model, the BYD ATTO 3 is also the top seller of new energy vehicles in Thailand, New Zealand and other countries.

From the initial export of commercial vehicles to the top of the list of passenger cars and even the construction of overseas factories, BYD's overseas road has clearly begun to take shape, and then it is time to wait for the sword to shine.

This article is from the official account of Wechat: Chaodian Lab (ID:SuperEV-Lab), author: Wang Lei Chumen

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