5 times the sum of "Wei Xiaoli" sales, BYD expanded its lead

As the representatives of the new car-making forces, Weilai, Xiaopeng and Ideal Automobile 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 sales. Behind the huge sales gap is the huge gap between Wei Xiaoli and BYD in many key areas such as technology, products, supply chain and channels.

One

BYD, a popular enterprise in China's 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 new energy vehicle sales reached 106042 in April, an increase of 313.22% over the same period last year's 25662 units. This is the second consecutive month since March this year that BYD's new energy vehicle sales have exceeded 100,000 units. In March, BYD's sales of new energy vehicles reached 104,900 units, an increase of 333.06% year-on-year.

Among them, the sales volume of pure electric models in April was 57,403 units, an increase of 266.69% over last year's 16,114 units; the sales of plug-in hybrid models in April were 48,072 units, an increase of 699.91% over last year's 8,920 units.

It is worth mentioning that THIS ACHIEVEMENT OF BYD is achieved on the one hand in the context of "lack of core and little lithium" in the global new energy automobile industry, and on the other hand, it is achieved in the context of the shutdown of many auto parts companies in China affected by the new crown pneumonia epidemic, which is not easy.

Two

While BYD achieved good sales results in April, many other new energy automobile companies sold dismal sales. For example, Weilai, Xiaopeng and Ideal Automobile, which represent the new car-making forces, achieved sales of 5,074, 9,002 and 4,167 units respectively in April, accumulating only 18,243 units, less than one-fifth of BYD's 106,000 sales. Behind the huge sales gap is the huge gap between Wei Xiaoli and BYD in many 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 Automobile currently do not have a core technology without me, relying 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 dynasties of the Dynasty series have achieved monthly sales of more than 10,000 results, and Qin and Song have achieved excellent results of monthly sales of 20,000+.

Not long ago, BYD officials also released news that the 200,000th medium- and large-sized flagship sedan Han was recently rolled off the production line in the Shenzhen factory, becoming the first Chinese self-owned brand sedan to achieve the "price and off-line double 200,000 +", which is a milestone event in the history of China's automobile industry development.

In addition to the Dynasty series of products, BYD has also laid out a marine series with great potential. The Ocean Series is subdivided into two sub-series of Marine Life and Marine Warship, of which the Marine Life Series focuses on pure electric models with e-platform 3.0 architecture, and the Ocean Warship Series features plug-in hybrid models with DM-i super hybrid technology.

At present, the Marine Life series has released the first pure electric model Dolphin, which is extremely best-selling, with sales of more than 10,000 for many consecutive months, and the mid-size sedan product Dolphin, which has attracted the attention of the industry, is also about to be listed. The Ocean Warship series recently launched the first compact sedan Destroyer 05, and the first medium-sizeDUV frigate 07 will be released shortly after.

In the second half of this year, BYD will also release a number of new products in the Ocean series, and 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 perfect layout in the fields of power batteries, motors, electronic controls and semiconductors, and is the most deeply deployed new energy automobile enterprise in the upstream supply chain field in China or even in the world, which allows it to calmly cope with the situation that the whole industry is facing the upstream supply chain crisis, becoming the only contrarian rising in the industry.

Finally, in terms of channels, BYD has a number of 4S stores and city showrooms that are far better than Wei Xiaoli offline, which supports the reach and transaction of BYD products to a large number of users.

Three

For the future, both BYD insiders and external experts have given a more optimistic forecast.

From January to April 2022, BYD's cumulative sales have reached 392,400 vehicles, with an average monthly sales of nearly 100,000 vehicles. Even with this conservative estimate, BYD will sell 1.2 million vehicles for the full year of 2022. However, a number of brokerage institutions predict that BYD's actual sales are expected to exceed 1.5 million vehicles in 2022.

In 2021, BYD sold a total of 730,000 cars, with sales revenue of 112.5 billion yuan in the automobile sector and an average selling price of more than 150,000 yuan for bicycles. Based on the average selling price of 1.5 million vehicles and 150,000, BYD's automotive business alone will achieve revenue of more than 225 billion yuan in 2022.

We look at the longer-term cycle, on the one hand, with BYD's sales volume, on the other hand, with BYD's high-end strategy to bring about an increase in price, BYD is expected to achieve annual sales of 6 million units in the next 5 years, the average price of 180,000 bicycles. Based on this calculation, the sales of BYD's automotive business will exceed 1 trillion yuan, and the net profit can be as high as 50-80 billion yuan according to the net interest rate of 5%-8%.

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 latest 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 2 times the upper limit of 1.6 trillion yuan of market value.

For BYD's next performance in the capital market, different investors will "see the benevolent and the wise", and we do not make too many detailed predictions about its stock price trend. But what is certain is that BYD will be one of the most anticipated companies in China's business community in the coming years.