\u3000\u3 China Vanke Co.Ltd(000002) 594 Byd Company Limited(002594) )
Event:
Byd Company Limited(002594) released the report for the first quarter of 2022: in Q1 2022, the company achieved an operating revenue of 66.825 billion yuan, a year-on-year increase of + 63.20%, and a net profit attributable to shareholders of listed companies of 808 million yuan, a year-on-year increase of + 240.59%.
Key investment points:
Q1 profitability improved against the trend. In Q1 2022, the company’s net interest rate was 1.36%, with a year-on-year increase of + 0.11pct and a month on month increase of + 0.41pct. The expense rate during the period was 8.92%, with a year-on-year ratio of -1.38pct and a month on month ratio of -0.84%; Among them, the financial expense ratio was -0.12%, year-on-year -1.57pct and month on month -0.71, which mainly benefited from the increase of interest income and the decrease of interest expenditure and exchange loss; The management expense ratio was 2.55%, with a year-on-year ratio of -0.29pct and a month on month ratio of -0.17pct. The first quarter is the traditional off-season of the industry, with net cash flow from operating activities of 11.9 billion yuan, the highest level in the first quarter of history, which reflects the company’s increasingly strong hematopoietic ability and indicates the high-quality performance of annual profitability.
The shift period of Q1 industry took the lead in accelerating, and the fuel vehicles were officially stopped in March. From January to March 2022, the company sold 291378 vehicles, a year-on-year increase of + 179.78%; 284737 new energy passenger vehicles were sold, with a year-on-year increase of + 433.42%. After the decline in subsidies in the first quarter and the increase in the ex factory price of the whole vehicle caused by the rise in the price of raw materials, the company’s sales volume still maintained a strong growth. In addition, in March, the company officially stopped production of fuel vehicles and fully entered the era of new energy vehicles.
The product matrix has been enriched to support the continuous high growth of sales. On March 17, 2022, destroyer 05, the first model of ocean net warship series, was launched; On March 15, the new Han series DM-I and dm-p models were officially released and pre-sale was opened, with orders of 12098 vehicles in 10 hours; On March 14, Byd Company Limited(002594) the two new models of ocean net, frigate 07 and seal, entered the publicity of 354 batches of new vehicles of the Ministry of industry and information technology, and are expected to be listed within the year. Among them, the seal will adopt CTB design to realize the integrated design of battery and body. The listing or upcoming listing of a number of heavy-duty models has further enriched the product matrix of haiyang.com, greatly expanded the overall diversity of the company’s products, promoted the continuous improvement of the brand, and played a strong supporting role in the sustained and rapid development of the company’s new energy vehicles.
The production capacity of batteries and complete vehicles continued to expand. In 2021q3, the company has successively registered four home appliance chizi (sun) companies, including Anhui Wuwei, Jiangsu Yancheng, Shandong Jinan and Zhejiang Shaoxing, and the power battery capacity is expected to accelerate the expansion; The company plans to use the existing factory in Taiyuan Byd Company Limited(002594) to carry out equipment transformation, build the assembly line and supporting facilities of EHS, the core component of hybrid system with an annual output of 500000 sets, and improve the production capacity of DM-I hybrid system; Hefei new energy vehicle high-end core parts project has been filed on August 3, 2021. After completion, it will have the production capacity of 400000 new energy vehicle core supporting parts. The company’s complete vehicle and battery capacity continued to expand to cope with the rapid growth of downstream demand and lay a good capacity foundation for the company’s long-term sustainable development.
Profit forecast and investment rating 2022 is the year of the company’s model year, and Byd Company Limited(002594) is expected to become the sales champion. At the same time, with the help of price increase and high-end, Q2’s profitability has continued to improve. It is estimated that the company’s main business income from 2022 to 2024 will be 306.3, 411.6 and 516.8 billion yuan, with a year-on-year growth rate of 42%, 34% and 26%; The net profit attributable to the parent company was 7.5 billion yuan, 12.0 billion yuan and 17.8 billion yuan, with a year-on-year growth rate of 147%, 59% and 49%; EPS is 2.59, 4.11 and 6.12 yuan, and the PE valuation corresponding to the current stock price is 91, 57 and 38 times respectively, maintaining the “buy” rating.
The risk suggests that the sales growth of new energy vehicles is lower than expected; The listing process of new cars is not as expected; The release of high-end brands and mass production progress are less than expected; The implementation progress of the company’s production capacity is less than expected; The external supply of power battery is not as expected.
