news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

original by phoenix auto in the brutal price war, byd (002594.sz) has shown a stronger ability to resist risks. this chinese auto company with the highest profit has made more than 70 million yuan a day in the first half of this year.

on the evening of august 28, byd released its 2024 interim report. data showed that in the first half of this year, byd achieved revenue of 301.127 billion yuan, a year-on-year increase of 15.76%; net profit of 13.631 billion yuan, a year-on-year increase of 24.44%.

in fact, byd experienced certain ups and downs in the first half of the year.

in q1 2024, byd's revenue increased only slightly by 4%, and its net profit increased by 10.6%, which was a significant slowdown compared with the previous two years. some people are worried that as byd's market base expands and its market share is already high, it will be difficult to continue the high growth rate of the previous two years. at the same time, as market competition intensifies, price wars affect the profit margins of the entire industry, and even leading companies cannot avoid it.

however, the strong performance of q2 fully demonstrated byd's advantages in scale, cost, technology and market. byd's q2 performance increased significantly both year-on-year and quarter-on-quarter. q2 net profit not only increased by 32.8% year-on-year, but also doubled compared with the first quarter of this year. byd's performance growth curve is still strong.

the market is optimistic about byd's new round of growth that started in the second quarter of this year. guojin securities pointed out in a research report that with the new technology cycle + increased utilization rate + increased overseas share, byd's single-vehicle profit will enter a medium-term continuous upward stage starting from q2 2024. kaiyuan securities said that "dm5.0 technology first-mover advantage + continued overseas sales + high-end brands are expected to usher in breakthroughs", and the company has a promising future.

behind the recovery of bicycle net profit in q2

in the first half of this year, byd's cumulative sales reached 1.613 million vehicles, a year-on-year increase of 28.5%, making it the world's highest-selling new energy vehicle company. among them, the sales in the second quarter reached 987,000 vehicles, a year-on-year increase of 40.2%.

the growth in sales volume has driven the increase in byd's revenue. byd's revenue in the first half of the year exceeded 300 billion yuan for the first time.

in terms of business, in the first half of 2024, byd's revenue from automobile, automobile-related products and other products businesses was approximately rmb 228.317 billion, a year-on-year increase of 9.33%; the revenue from mobile phone components, assembly and other products businesses was approximately rmb 72.778 billion, a year-on-year increase of 42.45%.

it can be seen that the growth rate of byd's automobile-related business revenue is lower than the growth rate of sales volume. the year-on-year decline in single-vehicle revenue is mainly due to byd's launch of the lower-priced honor edition model after february, and the proportion of related models in byd's overall sales has increased.

however, in the context of the price war causing a significant impact on industry profits, byd's gross profit performance remains stable. in the first half of the year, byd's gross profit margin reached 20.0%, an increase of about 1.7 percentage points from 18.3% in the same period last year. among them, the gross profit margin of automobiles, automobile-related products and other products was as high as 23.97%, an increase of 3.3 percentage points year-on-year. this gross profit margin level is high in the entire automobile industry.

byd's per-vehicle profit in q2 increased both year-on-year and month-on-month, further reflecting the cost advantages brought about by economies of scale and highly integrated supply chains.

with the launch of the fifth-generation dm products with higher gross profit margins and high-end models from brands such as denza and fangchengbao, byd is expected to further increase its sales in the second half of the year, and the average price and profit of each vehicle may increase.

it is worth mentioning that byd’s excellent performance in the first half of the year was largely due to the overseas market.

in terms of regions, byd's overseas revenue reached 89.95 billion yuan in the first half of the year, an increase of 39.7%, and the growth rate of overseas revenue was higher than that of domestic revenue (including hong kong, macao and taiwan). overseas revenue accounted for 29.9% of the group's total revenue, an increase of 5.1 percentage points from 24.8% in the same period last year. the global nature of the company's business is becoming more and more obvious.

byd pointed out in its 2024 interim report that as of june 2024, byd's new energy passenger vehicles have entered 77 countries and regions including brazil, germany, japan, and thailand. during the period, byd continued to enrich its model matrix, with multiple brands of models appearing and being launched internationally, with pure electric and plug-in hybrid models making joint efforts.

in addition, as its global layout accelerates, byd has entered a new stage of going overseas and is actively promoting the localized production process.

in january, byd's uzbekistan plant started production, and the first batch of mass-produced new energy models, the "song plus dm-i champion edition", officially rolled off the assembly line in june. at the same time, byd's factory construction in thailand, brazil and hungary is also progressing steadily.

"in the overseas passenger vehicle business, the group, relying on its leading advantages in new energy technology and product strength, is accelerating the improvement of its overseas multi-regional production capacity layout and sales network construction, broadening its product matrix, and continuing to work with partners to deepen its presence in overseas markets, providing global consumers with differentiated, competitive products and high-quality services," byd said.

byd is also continuing to increase its investment in research and development to ensure its continued leadership in the technology field. in the first half of this year, byd's r&d investment reached 20.18 billion yuan, a year-on-year increase of 41.6%.

in january, at the "byd 2024 dream day", byd launched its intelligent development strategy "whole vehicle intelligence" for the first time, and demonstrated many technological achievements such as intelligent driving, intelligent parking, and intelligent cockpit, demonstrating the group's intelligent strength and future strategic layout; in may, byd released a new generation of "e platform 3.0 evo" and launched the "fifth-generation dm technology", ushering in the "2" era of fuel consumption.

byd said that the company is accelerating the launch of a series of world-leading forward-looking and disruptive technologies, from electrification to intelligence, and gradually building up unique competitiveness.

three major opportunities drive a new round of growth

although the elimination competition in the new energy vehicle industry is accelerating, the outside world is generally optimistic about byd's future prospects. after experiencing a short-term slowdown in growth in q1, byd will quickly adjust in q2 and enter a new round of growth cycle.

overall, byd will have three important opportunities in the future.

first, there is a new round of growth in scale and profitability brought about by technological dividends.

with the launch of the fifth-generation dm plug-in hybrid technology, several models equipped with the latest plug-in hybrid technology, such as qin l dm-i, haibao 06 dm-i, and song l dm-i, have been launched. the market and cost advantages brought by the fifth-generation dm products in the q2 financial report have not yet been reflected. with the ramp-up of production capacity and the expected growth in sales, the scale effect and cost advantages will continue to increase profitability.

secondly, there is the imagination space brought by high-end brands and high-end products.

the recently launched pre-sale of the denza z9/z9gt is equipped with yisanfang technology, integrating the fifth-generation dm technology, e-platform 3.0 evo and other advanced technologies. in addition, the fangchengbao brand announced the launch of a brand renewal strategy on its first anniversary, and will comprehensively expand its future product line from a niche personality to a personality that embraces mainstream values. the improvement of its high-end brand product matrix is ​​expected to help the group increase its single-vehicle revenue and profits.

the third is byd’s long-term growth pole - going overseas.

the latest data shows that byd's overseas passenger car sales exceeded 30,000 in august. in the first eight months of this year, byd's overseas sales of new energy passenger cars totaled about 265,000, a year-on-year increase of 125.5%, achieving a doubling growth. although chinese automakers are currently facing geopolitical challenges in going overseas, byd's global competitiveness is still improving. at present, byd is still in a rapid development stage overseas, and its overseas market share is expected to continue to increase. in addition, due to the higher price and higher gross profit margin of overseas vehicles, byd's profits are expected to be further boosted.

overall, byd's dominance in the first half of electrification has given it a higher risk resistance against price wars, giving it greater initiative to ensure the stability of its operating data. on the other hand, how to make efforts in the second half of intelligence is what the outside world expects byd to have greater market value imagination space.

in terms of intelligent driving, in addition to self-research, byd is also actively opening up cooperation. among them, the cooperation between byd and huawei is the most anticipated by the outside world.

on august 27, byd fangchengbao and huawei signed an intelligent driving cooperation agreement in shenzhen. the two parties plan to jointly create the first hard-core exclusive intelligent driving solution. byd revealed that fangchengbaobao 8 equipped with huawei qiankun intelligent driving ads 3.0 has fully entered the actual vehicle testing stage and is expected to be launched after the third quarter of 2024.

it is worth looking forward to how big a spark the cooperation between byd and huawei, two of shenzhen's top technology companies, can create and whether there will be greater possibilities for cooperation in the future.

(text/zuo maoxuan)

copyright statement: the copyright of this article belongs to phoenix auto. please indicate the source when reprinting.