Lead: Weilai, Xiaopeng and Ideal Auto, the representatives of the new car-making forces, achieved sales of 5,074, 9,002 and 4,167 units respectively in April, with a total of only 18,243 units, less than one-fifth of BYD’s 106,000 units. one. Behind the huge sales gap is the huge gap between “Weixiaoli” and BYD in key areas such as technology, products, supply chain and channels.
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BYD, a popular company in the Chinese business community, continues to expand its leading edge in the field of new energy vehicles.
On May 3, BYD issued an announcement on the Hong Kong Stock Exchange. According to the announcement, the company’s sales of new energy vehicles in April reached 106,042 units, a year-on-year increase of 313.22% compared with 257,662 units in the same period last year. This is the second consecutive month that BYD’s new energy vehicle sales have exceeded 100,000 units since March this year. In March, BYD’s new energy vehicle sales reached 104,900 units, a year-on-year increase of 333.06%.
Among them, the sales of pure electric models in April were 57,403 units, an increase of 266.69% over the previous year’s 16,114 units; the sales of plug-in hybrid models in April were 48,072 units, an increase of 699.91% over the previous year’s 8,920 units.
It is worth mentioning that this achievement of BYD is on the one hand in the context of “lack of cores and less lithium” in the global new energy vehicle industry, on the other hand, in the context of the shutdown of many Chinese auto parts companies affected by the new crown pneumonia epidemic. It is not easy to achieve.
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While BYD achieved good sales in April, many other new energy vehicle companies experienced dismal sales. For example, Weilai, Xiaopeng and Ideal Automobile, the representatives of new car-making forces, achieved sales of 5,074, 9,002 and 4,167 units respectively in April, with a total of only 18,243 units, less than one-fifth of BYD’s 106,000 units. Behind the huge sales gap is the huge gap between Wei Xiaoli and BYD in key areas such as technology, products, supply chain and channels.
First of all, in terms of technology, BYD has formed a number of industry-leading core technologies in the fields of blade battery, DM-i super hybrid and e-platform 3.0, while Weilai, Xiaopeng and Ideal Auto have not yet owned one The core technology of the company relies on the technical support of upstream suppliers.
Secondly, in terms of products, BYD has formed a strong product matrix. Among them, the Han, Tang and Yuan Dynasty series all achieved monthly sales of over 10,000, and Qin and Song achieved excellent monthly sales of 20,000+.
Not long ago, BYD officially announced that it recently rolled off the 200,000th medium-to-large flagship sedan Han at the Shenzhen factory, becoming the first Chinese company to achieve the “price and offline double 200,000+” results. Self-owned brand sedan is a milestone in the history of China’s auto industry.
In addition to the Dynasty series products, BYD has also deployed a series of marine products with great potential. The marine series is further subdivided into two sub-series, marine life and marine warships. The marine life series mainly focuses on pure electric vehicles using the e-platform 3.0 architecture, and the marine warship series mainly uses DM-i super hybrid technology for plug-in hybrid vehicles.
At present, the marine life series has released its first pure electric model, the Dolphin, which is extremely popular, with sales exceeding 10,000 for several consecutive months. In addition, the industry-focused mid-size sedan product, the Dolphin, will be launched soon. The marine warship series just launched the first compact car destroyer 05 not long ago, and will release the first mid-size SUV frigate 07 soon.
In the second half of this year, BYD will also release a number of new products in the Ocean series. With the completion of these products, BYD’s competitive advantage in products will be further expanded.
Third, in terms of supply chain, BYD has a complete layout in the fields of power batteries, motors, electronic controls and semiconductors. It is the new energy vehicle company with the deepest layout in the upstream supply chain in China and even in the world, which makes it face upstream in the entire industry. In the case of a supply chain crisis, it can calmly deal with it and become the only contrarian riser in the industry.
Finally, in terms of channels, BYD has more offline 4S stores and city showrooms than Wei Xiaoli, which supports BYD’s products to reach a large number of users and achieve transactions.
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For the future, both BYD insiders and external experts have given more optimistic forecasts.
From January to April 2022, BYD’s cumulative sales have reached 392,400 units, with an average monthly sales of nearly 100,000 units. Even by conservative estimates by this standard, BYD will achieve sales of 1.2 million units in 2022. However, a number of brokerage agencies predict that BYD’s actual sales are expected to exceed 1.5 million units in 2022.
In 2021, BYD will sell a total of 730,000 vehicles, with a sales revenue of 112.5 billion yuan in the auto segment, and the average selling price of a single vehicle will exceed 150,000 yuan. According to the sales volume of 1.5 million units and the average selling price of 150,000, BYD’s auto segment business alone will achieve revenue of more than 225 billion yuan in 2022.
We look at a longer-term cycle. On the one hand, with BYD’s increased sales volume, and on the other hand, with the increase in price brought about by BYD’s high-end strategy, BYD is expected to achieve annual sales of 6 million units in the next five years, with 180,000 units sold annually. Average price of a bicycle. Based on this calculation, the sales of BYD’s auto segment will exceed 1 trillion yuan, and based on a net profit rate of 5%-8%, the net profit can be as high as 50-80 billion yuan.
According to the valuation of 15-20 times the price-earnings ratio, BYD’s market value in the capital market will likely reach the range of 750-1600 billion yuan. As of the most recent trading day, BYD’s market value was 707.4 billion yuan, close to the lower limit of the valuation range of 750 billion yuan, but there is still more than double room for growth from the upper limit of 1.6 trillion yuan in market value.
Regarding BYD’s next performance in the capital market, different investors will “benevolent people see their own opinions, and wise people see wisdom”, and we do not make too much detailed predictions about its stock price trend. But what is certain is that BYD will be one of the most anticipated companies in the Chinese business community in the next few years.
Post time: May-07-2022