Source of this article: Times Finance Author: Lin Qian
On the evening of March 29, BYD released its 2021 annual performance report.
According to the report, BYD achieved operating income of 216.142 billion yuan in 2021, an increase of 38.02% year-on-year; net profit attributable to shareholders of listed companies was 3.045 billion yuan; net cash flow from operating activities was 65.467 billion yuan, an increase of 44.22% year-on-year.
In 2021, BYD's R&D investment was 10.627 billion yuan, an increase of 24.20% year-on-year; the number of R&D personnel was about 40,400, an increase of 31.52% year-on-year. The continuous increase in research and development has made BYD have core technologies such as ultra-safe blade batteries, DM-i super hybrid, e-platform 3.0, and IGBT4.0. Driven by technological innovation, BYD's various business segments are booming.
In terms of business, BYD's main business areas include new energy vehicles and traditional fuel vehicles, including automobile business, mobile phone parts and assembly business, secondary recharge battery and photovoltaic business, of which automobile-related business revenue last year was about 112.489 billion yuan, an increase of 33.93% year-on-year; mobile phone parts, assembly and other products business revenue was about 86.454 billion yuan, an increase of 43.99% year-on-year; rechargeable battery and photovoltaic business revenue was about 16.471 billion yuan, an increase of 36.27% year-on-year.
It is worth mentioning that the current revenue scale and overall gross profit margin of the automotive business rank first in BYD's three major business segments, and under the wave of new energy and the upward trend of the brand, BYD's automotive business has the most room for development and imagination.
Huaxi Securities Research Report pointed out that BYD relies on the two advanced technology platforms of DM-i and e platform 3.0, from defining technology to defining users, and the iteration speed of models and the probability of explosive models have increased significantly. At the same time, the company's supply chain security capabilities have repeatedly passed the test of industrial force majeure and successfully demonstrated strong stability. With the launch of new models and the rapid release of volume, the company is ushering in an inflection point in sales growth and scale-driven performance.
Source | BYD's official website models are selling well, and BYD's high-end products are released within the year
"The development of new energy vehicles exceeded expectations last year, and the speed of industry change in the future may be faster than imagined." On March 26, at the 100-person forum, Wang Chuanfu, chairman and president of BYD Co., Ltd., said.
According to the China Automobile Association, in 2021, the production and sales of China's new energy vehicle market reached 3.545 million units and 3.521 million units, respectively, an increase of 1.6 times year-on-year, and the market share reached 13.4%, 8 percentage points higher than that of the previous year. According to the data of the Association, the market penetration rate of new energy vehicles once exceeded 20%.
New energy vehicles are the biggest highlight of the automotive industry in 2021, and BYD is the most dazzling one in the new energy automobile industry. According to the data, BYD's sales of new energy vehicles exceeded 600,000 units last year, an increase of 218% year-on-year, and its market share reached 17.1%, not only leading the domestic market, but also ranking the forefront of the world.
BYD adheres to the common development of plug-in hybrid and pure electric, and has the strategic determination and technical strength of "two legs and walking in unison". In the field of pure electricity, BYD takes the blade battery and the e-platform 3.0 as the gripper, and its electric products are both safe, intelligent and efficient; in the hybrid field, the model equipped with BYD DM-i super hybrid has the characteristics of ultra-low fuel consumption, quiet and smooth, and excellent power, and ushered in hot orders as soon as it was released.
At present, BYD has formed a product matrix based on the four major explosive products of Han, Qin PLUS DM-i, Song PLUS DM-i, and Tang DM-i, supplemented by dolphins, yuan PLUS and other products. Among them, Qin PLUS DM-i has continued to climb its sales since its listing at the beginning of last year, ranking among the top 6 in the market segment in the past six months, breaking the monopoly of the joint venture brand on the A-class car market. The Song PLUS DM-i ranked 5th in the total passenger car sales in February this year, with remarkable results.
Source | BYD official website
Huaan Securities said in the research report that "the current company has abundant orders in hand, and its product strength has been fully recognized by customers, laying a solid foundation for the sustained high growth of sales in 2022."
Driven by a variety of hot-selling vehicles, BYD's brand power continues to increase. Huaxi Securities said in the research report that asP exceeded 150,000 yuan, and the high-end effect was remarkable. The company's automotive ASP in 2021 will reach 151,000 yuan, removing the disturbances in 2020 due to mask sales and other inclusions, and the company's average bicycle price is steadily increasing. Among them, the flagship Models Han EV, Han DM and B-class SUV Tang DM-i have pulled significantly on the company's ASP. IT IS EXPECTED TO CONTINUE TO IMPROVE STEADILY THIS YEAR, WITH HYBRID NEW MODELS KEY. Han DM-i, Han DM-p will be listed in April, warship series products will also be listed, slightly higher than the Dynasty series pricing, is expected to drive ASP steadily improved.
It is reported that in 2022, BYD will further expand the high-end market and launch high-end brands, and the price range is expected to be more than 50-1 million yuan. In the future, BYD's automotive business will be composed of four sections: Dynasty.com, Ocean.com, Denza and high-end brands.
It is worth mentioning that last year, BYD suffered from too many orders and production capacity could not meet the market demand of the "happy trouble". Based on this, considering the new energy wave and the market appeal of the company's products, BYD has already started to expand its production capacity, aiming to better meet consumers and promote the development and progress of the industry.
According to BYD's production capacity plan, it has planned or expanded eight plants since last year. By the end of 2022, BYD's actual available capacity will reach 1.9 million units. In addition to the three major plants in Shenzhen, Xi'an and Changsha, changzhou, Fuzhou, Hefei, Jinan and Zhengzhou are expected to be put into operation by the end of this year.
Previously, some brokers said that from the data of the past two months, BYD is basically in a state of full production and full sales. This also means that with the release of production capacity, BYD's sales will increase significantly this year.
Zheshang Securities believes that BYD's DM-i hybrid vehicle sales continue to increase, and the scale effect is prominent. BYD is expected to become the first autonomous car company to sell new energy vehicles annually to exceed one million. The scale effect of car companies is obvious, and the high growth of sales dilutes fixed costs such as depreciation amortization, research and development expenses, and management expenses, which makes the cost of bicycles decline, and it is expected that the profit elasticity of the automobile business will be greatly improved in the future.
Vertical integration highlights supply chain strength
It is worth mentioning that BYD's confidence in proposing the above goals lies not only in the strong product strength of its models, the supply of climbing capacity, and its own system advantages in the supply chain.
In 2021, the new energy automobile industry has encountered two major problems: chip shortage and tight power battery supply, which has slowed down the development speed of the entire industry to a certain extent. However, in this context, BYD's new energy vehicle sales exceeded 600,000 units, a year-on-year growth rate of 218.3%, far exceeding Tesla and other new energy vehicles with an annual sales scale of more than 200,000 vehicles.
The above achievements are based on BYD's complete supply chain of new energy vehicles. It is understood that BYD is the only car company in the world that has mastered the core technology of the whole industry chain of new energy vehicles such as batteries, motors, electronic controls and chips at the same time.
In terms of semiconductor business, since the acquisition of Ningbo Zhongwei Semiconductor in 2008, after more than ten years of technology precipitation, BYD has realized a vertical operation mode (IDM) integrating chip design, wafer manufacturing, packaging and testing, and production, bringing together power semiconductors, intelligent control ICs, intelligent sensors, optoelectronic semiconductors and other comprehensive solutions, covering the fields of vehicle regulations, consumer electronics, home appliances, etc. Chip products are superior to mainstream products in the market in a number of key technical indicators. It is reported that the current BYD semiconductor business is steadily advancing.
In the field of new energy, BYD has laid out lithium resources from the source, established lithium battery factories in Qinghai, Shenzhen, Xi'an, Chongqing, Changsha, Guiyang and other places, and the company has established a number of subsidiaries to achieve vertical expansion through self-built/mergers and acquisitions, and now its business is spread throughout power batteries, PACK processes, battery positive and negative electrodes, and battery recycling. While being self-sufficient, BYD blade batteries have also been supplied to the outside world since last year, which has been welcomed by friends in the industry.
It is worth mentioning that the current new energy automobile industry is facing new challenges. "Behind the explosive growth of the market, the industry is facing severe challenges such as rising raw material prices and unstable supply chains. This year is a key year for new energy vehicles to take advantage of the momentum and accelerate change. Previously, Wang Chuanfu said at the electric vehicle 100 people meeting.
After years of layout, BYD is highly self-made in core components such as the three-electric system, and some layouts in the industrial chain can greatly reduce supply chain disturbances and the impact of large increases, and with the strong product strength of BYD's models, its market size will continue to expand. Some industry insiders have analyzed that in this surging and turbulent new energy tide, BYD's vertical integration advantages will be continuously verified by the times.
Zheshang Securities previously said that considering that BYD has strong technological advantages in the new energy industry, perfect supply chain coverage, and will provide new energy vehicle solutions in the future to enrich the revenue structure, it enjoys a valuation premium, and it is expected that the market value by the end of 2022 is expected to exceed 1.1 trillion yuan.
Since 2020, BYD's stock price has been soaring, once creating a record high of 333.33 yuan per share in late October 2021, and its full year of 2021 rose by about 42.5%. As of the close of trading on March 30, BYD rose 2.61% at 237 yuan / share, with a total market value of 690 billion yuan. This means that from the 1.1 trillion market value mentioned by the brokerage, BYD still has nearly 60% upside.