Byd Company Limited(002594) and Contemporary Amperex Technology Co.Limited(300750) are the two giants of Shanxi Guoxin Energy Corporation Limited(600617) automobile. In 2021, the sales volume of Byd Company Limited(002594) new energy vehicles ranked first in China and the installed capacity of China Shipbuilding Industry Group Power Co.Ltd(600482) batteries ranked second. Freddy battery was established to start the external supply business of power batteries, forming a significant synergistic effect in the layout of the whole industrial chain of new energy vehicles; The installed capacity of China Shipbuilding Industry Group Power Co.Ltd(600482) battery of Contemporary Amperex Technology Co.Limited(300750) ranks first with a market share of 52%. It actively arranges the upstream and downstream of the industrial chain through investment and acquisition. In addition to the vertical integration of the battery industrial chain, Contemporary Amperex Technology Co.Limited(300750) also takes the battery as the core and starts a horizontal layout in the fields of three electricity and complete vehicles. This report makes a comparative study on the two leaders of new energy vehicles:
From the overall situation of the company: ① both Byd Company Limited(002594) and Contemporary Amperex Technology Co.Limited(300750) have been deeply cultivated in the field of lithium-ion batteries for many years; ② Both pay more attention to R & D and continuously invest a large amount of R & D funds, which is conducive to continuously building the competitive advantage of products and ensuring the sustainable development of the company; ③ Byd Company Limited(002594) has a wide range of business contents, including main businesses such as automobile, electronics and secondary battery. Its power battery and other businesses are moving from self supply to external supply; Contemporary Amperex Technology Co.Limited(300750) mainly focuses on battery related businesses, and gradually infiltrates the upstream and downstream layout; ④ The overall revenue scale of Byd Company Limited(002594) is large, and the revenue scale of Contemporary Amperex Technology Co.Limited(300750) generally maintains a relatively rapid growth trend; ⑤ Byd Company Limited(002594) the business scope is wide, and the sales profit margin fluctuates to a certain extent. As new energy vehicles are still in the period of rapid development, we believe that their whole vehicle business has not fully realized profit. With the rapid growth of new energy vehicle business and the external supply of blade batteries, the future profit can be expected; The profitability of Contemporary Amperex Technology Co.Limited(300750) has been strong and relatively stable. The gross profit margin of various businesses is at a relatively high level. With the development of business in recent two years, the gross profit margin of energy storage business has increased significantly.
From the perspective of power battery business: ① Contemporary Amperex Technology Co.Limited(300750) put forward six concepts, each performance index of the battery has reached the industry-leading level, and a number of next-generation battery technologies including sodium ion battery have been arranged; Byd Company Limited(002594) deeply cultivate the field of lithium iron phosphate battery, and launched the blade battery technology in 2020, which has the technical advantages of long endurance, high stability and high safety. ② Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) ranked first and second in the installed capacity of China Shipbuilding Industry Group Power Co.Ltd(600482) batteries, and their market share was significantly higher than that of other manufacturers. ③ Contemporary Amperex Technology Co.Limited(300750) the planned production capacity of self built production base and joint venture with automobile enterprises exceeds 650gwh and 140gwh respectively; The total capacity planning announced by Byd Company Limited(002594) has reached 300gwh. ④ Contemporary Amperex Technology Co.Limited(300750) actively layout the upstream and downstream of the industrial chain through investment and acquisition, and ensure production capacity and profit space through the integration of the industrial chain; Byd Company Limited(002594) at present, the layout of the new energy vehicle industry has penetrated the upper, middle and lower reaches of the industry and the post market, initially forming a closed loop of the industrial chain and forming a synergistic effect. ⑤ The upstream material supply chain systems of Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) have both quantity and quality. The multi supplier model strengthens the voice over suppliers and increases the quality of their own suppliers and the stability of the supply system. ⑥ Contemporary Amperex Technology Co.Limited(300750) fully covers the customers of mainstream automobile enterprises in the market, with high quality and dispersion, which has laid a solid foundation for its sustained and rapid development. Byd Company Limited(002594) in addition to self supply, the external supply business is being opened through Freddy battery. The continuous release of blade battery capacity and the gradual expansion of external supply business will create a second growth curve for the company.
From other related businesses: ① Byd Company Limited(002594) is the leader of Shanxi Guoxin Energy Corporation Limited(600617) automobile. It has established a full engine and full power product system of traditional fuel oil, hybrid and pure electric vehicles, and has formed a complete closed loop in the new energy automobile industry chain with significant synergy; Contemporary Amperex Technology Co.Limited(300750) in addition to vertically integrating the battery industry chain, it has also started a horizontal layout in the fields of motor, electronic control and vehicle with battery as the core; ② The energy storage business of Contemporary Amperex Technology Co.Limited(300750) has developed rapidly, forming the second growth curve for the company; The energy storage business of Byd Company Limited(002594) has spread across 23 countries and more than 100 cities around the world, with a cumulative global sales of more than 700mwh.
Overall, the advantages of Byd Company Limited(002594) are reflected in that both new energy vehicles and power batteries are industry leaders. The layout of the new energy vehicle industry has penetrated the upstream, middle and downstream markets of the industry, formed a closed-loop industrial chain, formed a synergy effect, and injected new power into the growth of the company through the external power battery supply business; The advantages of Contemporary Amperex Technology Co.Limited(300750) are reflected in the high market share of power battery business, which fully covers the customers of mainstream car enterprises in the market, has completed the in-depth layout of the upstream and downstream of power battery industry chain, and has formed the second growth curve through the fast-growing energy storage business;
Investment suggestion: the sales volume of new energy vehicles is growing rapidly and steadily, and the power battery market has a broad space. It is recommended to form synergy in the upstream and downstream layout of the new energy vehicle industry, and open the external supply of power battery business to form the second growth curve [ Byd Company Limited(002594) ]; It is suggested to pay attention to the leading battery enterprise [ Contemporary Amperex Technology Co.Limited(300750) (covered by the new power unit)] with deep technology accumulation, deep vertical integration of the industrial chain and supporting multiple high-quality vehicle enterprises downstream.
Risk tips: the penetration rate of new energy vehicles is lower than expected, the price of upstream raw materials continues to rise, the competition in the power battery industry intensifies, the calculation is subjective, there is a risk of deviation, and the risk of selecting comparable companies across the market
