A new historical high, BYD‘s annual report forecast is released, overcoming the dilemma of increasing revenue without increasing profits

Source: Xinbang

    On the evening of January 29th, BYD disclosed its performance forecast, predicting a net profit of 29 billion to 31 billion yuan in 2023, a year-on-year increase of 74.46% -86.49%. If calculated based on the expected lower profit limit of 29 billion yuan, BYD will earn approximately 79.45 million yuan per day in 2023.

    In 2023, the new energy vehicle industry continued to maintain a high-speed growth trend, and BYD‘s sales of new energy vehicles reached a new historical high, with annual sales reaching 3.0244 million units, further consolidating its leading position in global new energy vehicle sales.

    From the 2023 performance forecast, BYD has overcome the previous dilemma of "increasing revenue without increasing profits". While sales have increased, it has achieved a high increase in net profit, and the growth rate of net profit is higher than the growth rate of sales.

    According to previously disclosed sales data, BYD‘s cumulative sales of new energy vehicles in 2023 were 3.0244 million units, a year-on-year increase of 62.3%. BYD expects a net profit growth rate of 74.46% -86.49% during the same period, which is higher than the sales growth rate.

    Industry insiders say that BYD is expected to have a net profit of 27.4 billion to 29.7 billion yuan in 2023, which is not much different from the net profit and further confirms BYD‘s actual profitability.

    For the rapid growth of performance, BYD stated that the new energy vehicle industry will continue to maintain a high-speed growth trend in 2023, and the company‘s sales of new energy vehicles will reach a new historical high, further consolidating its leading position as the world‘s top seller of new energy vehicles. Despite more intense industry competition, the company has achieved significant improvements in profitability and demonstrated strong resilience through the continuous improvement of brand power, rapid growth in overseas sales, continuous expansion of scale advantages, and strong cost control capabilities in the industrial chain.

    At the same time, BYD‘s mobile phone parts and assembly business has benefited from the increase in overseas major customer business share, the recovery of Android customer demand, the rapid growth of new energy vehicles and new intelligent products business, a significant increase in capacity utilization, further optimization of business structure, significant improvement in profitability, and significant growth in profitability.

    In the fourth quarter of 2023, BYD lowered prices on multiple models, ranging from several thousand to tens of thousands of yuan, covering models such as the Escort 07, Dolphin, Seal Champion Edition, Song PLUS Champion Edition, Destroyer 05 Champion Edition, Qin DM-i, and Qin EV. Against the backdrop of intensified competition and price wars in the automotive industry, BYD‘s profitability still maintains year-on-year growth.

    According to the performance forecast, BYD is expected to achieve a net profit attributable to shareholders of 7.633 billion yuan to 9.633 billion yuan in the fourth quarter of 2023, a year-on-year increase of 4.40% to 31.76%.

    Rapid increase in volume, significant growth in tire production and sales, sustained enhancement of market competitiveness, and significant improvement in profitability.

    The China Association of Automobile Manufacturers (CAAM) stated that 2023 is a year for China‘s automobile industry to create miracles. The wholesale and export of passenger cars have reached new highs, allowing everyone to re recognize the potential and market development space of China‘s automobile industry. With the continuous contribution of electrification transformation and export growth, China‘s automobile production and sales are expected to exceed 40 million units in the future.

    In 2023, BYD achieved breakthroughs in multiple high-end models, such as the Tengshi brand selling 127840 units throughout the year; Yangwang Automobile and Equat Leopard Automobile officially started delivery in November 2023, and in December 2023, Yangwang brand sold 1593 vehicles, a month on month increase of 290%; The sales of Eq. Leopard brand reached 5086 units, a month on month increase of 712%.

    In terms of overseas sales, BYD sold a total of 242700 new energy passenger cars overseas in 2023, and its passenger car sales have expanded to 59 countries and regions worldwide.

    According to a research report by Fangzheng Securities, looking ahead to 2024, BYD is expected to start a new product cycle with multiple car series such as Yangwang, Tengshi, Fangcheng Leopard, Dynasty Network, and Ocean Network. Coupled with the resonance of going global and high-end, it is expected to achieve a sales target of 4 million vehicles. The intelligent strategy is expected to drive the intelligent transformation of multiple new cars by BYD. In addition, with the gradual release of factors such as model upgrades and inventory in the first and second quarters of 2024, the company is expected to start a new round of growth cycle.