On April 27, BYD released its first quarter 2023 results。The company achieved operating income of 1201 in the first quarter, according to financial data..700 million yuan (RMB, the same below), up 79.8%, down 23.15%; net profit attributable to parent 41.300 million yuan, up 410% year-on-year, down 43% month-on-month..5%; gross margin of 17.86%, YoY growth 5.46%, down 1.14%; net margin of 3.64%, YoY growth 2.28%, down 1.3%。

 

Sales in the first quarter increased by nearly 90% year-on-year. BYD Reappeared "Han and Tang Prosperity" and Targeted 3 Million Vehicles This Year

It is worth noting that BYD's net profit in the first quarter increased by more than 400% year-on-year, recording 41.300 million yuan, and between 2018 and 2021, BYD's full-year net profit only exceeded 4 billion yuan in 2020.。In that year, BYD, the flagship model "Han" ushered in a big sale, and its modified model "Tang" sales also grew rapidly, known as the history of new energy passenger cars "Han and Tang Prosperity."。

For the excellent revenue growth and net profit "epic" breakthrough, BYD pointed out in the financial report, which is mainly due to its new energy vehicles in the financial report period of excellent sales.。In the first quarter of 2023, BYD's cumulative sales volume was 55.210,000 vehicles, up 89.47%。

 

According to the statistical analysis of the China Association of Automobile Manufacturers, although the overall automotive terminal market was relatively weak in the first quarter of 2023, the new energy vehicle industry accelerated to break through delivery barriers during this period.。According to association data, from January to March 2023, the production and sales of new energy vehicles completed 1.65 million and 158, respectively..60,000 units, up 27.7% and 26.2%, the market share reached 26.1%。

The data also shows that BYD's cumulative sales of new energy vehicles in the first quarter reached 55.20,000 vehicles, up 92.9%, market share rose to 34.8%。

 

In the March national new energy market in-depth analysis report released by the Federation on April 27, according to its statistical caliber, BYD in the month and the first quarter are more than 35% of the share of the new energy narrow passenger car retail sales list, more than twice the second-ranked Tesla, the lead is very solid.。

 

As can be seen from the data, BYD Song PLUS's outstanding performance is due。In 2022, as a star model of BYD, Song PLUS won the national SUV PHEV annual double champion sales, at that time to BYD and even the entire new energy manufacturers to seize the market played an important role.。

Entering 2023, the model continues to be strong。On March 16, BYD announced that BYD Song PLUS's 500,000th new car rolled off the assembly line, becoming the fastest new energy SUV model for Chinese brands to achieve sales of 500,000 vehicles.。In March of this year, according to official data, Song PLUS recorded sales of 32,510 vehicles in the month, up 43% year-on-year.。In addition, the model has already sold more than 140,000 units in the first quarter, doubling year-on-year, making it a well-deserved sales champion.。

In addition, BYD Yuan PLUS, BYD Tang, BYD Frigate 07 are all at the top of the list, helping BYD's sales in the first quarter to increase year-on-year.。

In 2022, BYD's annual cumulative sales of more than 1.86 million vehicles, won the global new energy vehicle sales crown, but during the 2023 Shanghai International Auto Show, BYD Brand and Public Relations General Manager Li Yunfei put down his rhetoric in an interview, said BYD this year to lock the sales target of 3 million vehicles, including overseas markets and the Chinese market。

 

Behind the net profit surge of more than four times: lithium prices plummeted to open up profit margins, enterprise economies of scale highlighted another helping hand

 

As an important raw material for new energy vehicle batteries, the price of lithium has always been a pain that many new energy manufacturers can't get away with.。

In fact, the production of lithium carbonate is not very difficult, and its price is mainly affected by the downstream demand boom of the industrial chain.。In 2021, for example, the annual production of new energy vehicles in that year 367.70,000 vehicles, up 152.5%; domestic lithium carbonate production for the same period was 23.040,000 tons, up 32.97%, while lithium prices have soared during this period, hitting a high of $600,000 / tonne in November 2022.。

At that time, there were many "industry leaders" who expressed their confusion about the unreasonable rise in lithium prices.。In an interview, Mr. Wang, chairman of Funeng Technology, said that the supply and demand of lithium carbonate and lithium hydroxide will actually be balanced in 2022, and there is a lot of hype in the sharp rise in prices.。He said that the current lithium carbonate resources are not scarce, the production is not very difficult, the actual cost of about 30,000 yuan, there is no reason to rise to 500,000, 600,000.。

With the increasing price of lithium carbonate, the profit margins of new energy manufacturers have been compressed step by step in recent years.。In 2022, Zeng Qinghong, chairman of GAC Group, had no choice but to reveal that the cost of power batteries accounted for nearly 60% of the total cost of automobiles, and it was still increasing.。In response, he laughed and said, "Aren't I working for the Ningde era now?？"

Finally, as the market gradually returned to rationality, from November last year, the price of battery-grade lithium carbonate all the way down, in less than five months, the price of a single ton fell by about 400,000 yuan.。On April 28, according to the latest data released by Shanghai Steel Union, the average price of battery-grade lithium carbonate was only 18.90,000 yuan / ton, down two-thirds from the high level.。

The decline in the price of lithium carbonate has brought benefits to new energy manufacturers.。Some analysts say that assuming that the terminal new energy vehicle consumes 55 degrees of electricity per bicycle, the current cost of new energy vehicles will drop by about 1% compared to last year's level..60,000 yuan。

In addition, with BYD's continued investment and capacity expansion, the cost-scale benefits of its car manufacturing plant began to emerge.。Some analysts pointed out that in the first quarter of this year, BYD's bicycle revenue and bicycle profit have been able to reach 170,000 yuan and 0.670,000 yuan。

You know, the first quarter is the traditional off-season for car companies, according to this data, BYD bicycle revenue has reached the average level of last year, bicycle profit is about 170% year-on-year growth.。

As it turns out, the decline in lithium prices and the gradual force of the scale effect are the invisible drivers of BYD's year-on-year surge in net profit in the first quarter.。

Inheriting the fine tradition, BYD spent more than 6 billion yuan on research and development in the first quarter.

In fact, BYD Chairman Wang Chuanfu has been paying great attention to enterprise R & D and innovation, which is also last year in the new energy industry is facing a structural shortage of chips, lithium carbonate prices remain high dilemma, BYD can still go against the trend to break through and win the global sales crown of the "way to break the game."。

In 2022, under the pressure of upstream costs, BYD is relying on technological innovation, through self-supply battery technology, firmly grasp the initiative in their own hands, to achieve a headwind turnaround.。Last year, BYD has launched the "blade battery," "DM-i super hybrid," "e platform 3.0, "" CTB battery body integration "and" DM-p king hybrid "and other disruptive technologies, and breakthroughs in secondary rechargeable batteries, and constantly strengthen their own technical advantages。

According to BYD's 2022 earnings report, the company's research and development expenses for the whole of last year exceeded the 10 billion yuan mark for the first time, up 133% year-on-year to 186.5.4 billion yuan。Entering 2023, BYD still seems to want to continue this "glorious tradition," financial data show that in the first quarter of this year, BYD Group's cumulative research and development costs reached 62.3.8 billion yuan, up 164.24%。

Such input, naturally also bear fruit。

On April 10, BYD released the epoch-making cloud-smart body control system, which is the world's first new energy exclusive smart body control system。At the press conference, Yang Wang U9, equipped with cloud-X technology, demonstrated fully active body control technology, which can achieve high-level functions such as "0" roll, "0" pitch, three-wheel driving, vehicle dancing and in-situ take-off. Represents the highest level of global body control system。It is reported that the system will also be equipped in the flagship models of BYD Dynasty and Ocean in the future, and will further enhance the comfort and safety of BYD's automotive products.。

On April 24, news came that BYD's self-developed electric pickup truck was already in the final stage of development and is expected to be available this evening.。It is reported that the series will be equipped with BYD DM plug-in hybrid system, with 1.5T and 2.0T two power components, since the body is equipped with a charging socket, the car may provide plug-in hybrid and pure electric power versions。

BYD revealed that in addition to the seagulls, which have been officially listed on April 26, there will be destroyer 07, Song L, Tengshi N7, Yang Wang U8 and other models entering the market one after another during the year.。In addition, the highly anticipated U9 and F brands may be listed in 2024。

In the face of wave after wave of black technology and new models, the market has reason to believe that BYD will continue to create surprises in the future。

Export revenue! Overseas markets become a new growth point for business BYD wants to take advantage of the "Ocean" series to ride the waves.

In 2022, BYD took an important step in the international market, launching models in Australia, Japan, Brazil and other places, and sales were booming, once in short supply.。

In the first quarter of this year, BYD's export business was hot again。According to the financial report, BYD exported about 3% of its passenger cars during the period..870,000 vehicles, up 1,390% year-on-year, with a footprint in 51 countries and regions around the world, has gradually grown into a new growth point for the company's business.。

In September last year, BYD held a European new energy passenger car conference, for the European market to launch Han EV, Tang EV, Yuan PLUS three models, and in October of the same year at the Paris Motor Show in France appeared on the market, marking its opening up the European market, for its development of overseas business a key step.。

In mid-April, BYD held a new car launch event in Barcelona, Spain, and announced that the Dolphin and Seal models will enter the European market in 2023。Among them, Dolphins will begin pre-sale this summer, the fourth quarter delivery。Seals will also be available in Europe soon to meet local European consumers。

Shu Youxing, General Manager of BYD International Cooperation Division and European Automobile Sales Division, said，The arrival of the Dolphin and the Seal marks BYD's determination to further expand the European new energy vehicle market。

The data shows that although the penetration rate of new energy vehicles in China, Europe and the United States has exceeded 30%, 20% and 10% respectively, the overall penetration rate of new energy vehicles in other regions and countries is below double digits, and there is huge room for development.。

 

Citi expects BYD to record strong sales growth Damo said it was concerned about its high-end and overseas market progress.

In the face of outstanding performance, after the performance, the major banks have given their views.。

Citi said BYD is the bank's top choice in the mainland auto industry, with estimates of sales of 2.96 million, 3.95 million and 4.71 million this year to the following year, respectively, due to a strong order backlog.。In addition, the bank is optimistic about the improved supply and demand situation of BYD plug-in hybrid vehicles, the future penetration of the average selling price of pure electric vehicles to the low and high end, as well as the future market share.。As a result, the bank announced that BYD will replace Brilliance in the pan-Asian focus list, with a "buy" rating and a target price of HK $602.。

Morgan Stanley said BYD recorded a net profit of 4.1 billion yuan in the first quarter, down 44 percent from the previous quarter and up 411 percent year-on-year, indicating that excluding BYD Electronics' contribution, the company's bicycle profit was about 7,000 yuan, roughly in line with market expectations.。Damo also said BYD's revenue fell 23% to RMB120.2 billion from the previous quarter, as electric vehicle sales fell about 20% to RMB54 in the first quarter..80,000 vehicles, reflecting seasonality and a slowdown in the recovery of demand in the automotive industry amid increased price competition.。

The bank further noted that in addition to focusing on its sales targets, the market should also pay close attention to its high-end market and overseas market development progress, as both are key to BYD's growth prospects.。As a result, Damo set BYD's target price at HK $215 and maintained its "in sync with the market" rating.。

Credit Suisse, for its part, released a research report saying BYD's first-quarter results were in line with expectations, with net profit per bike falling 30% to 7,481 yuan from the previous quarter during the reporting period, in line with management's guidance range of 7,000-8,000 yuan.。Looking ahead, the bank believes that the company's gross profit will improve in the second quarter due to the sharp drop in lithium prices and the successful listing of BYD's new products.。As a result, the bank maintained BYD's target price of HK $420 and rated it as "outperforming the market."。

Interestingly, BYD's H shares were volatile today, but as of the close, BYD's shares were up or down 0% during the day, still at 236.00 Hong Kong dollars。

 

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