BYD (002594) Third Quarterly Report Review: Supplementary Downturn, Weak Demand, Short-term Profit Pressure
Key points of the report Description On October 29, BYD released the third quarter report of 2019, with operating income of 938 in the first three quarters.
22 ppm, a five-year increase of 5.
44%, net profit attributable to mother 15.
74 ppm, a 10-year increase3.
09%; Q3 single-quarter operating income was 316.
$ 3.8 billion, a ten-year average of 9.
2%, net profit attributable to mother 1.
20ppm, an average of 88 in ten years.
At the same time, the company expects a net profit of 15 in 2019.
8.4 billion to 17.
74 ‰, the ten-year average growth rate is 36% to 43%, that is, the net profit attributable to the mother in Q4 2019 is 0.
$ 100 million to $ 200 million, exceeding 84% to 99% each year.
The event comment benefited from the heavy volume of the mobile phone component business, and the income margin in the third quarter was better than the sales performance.
The company sold 10 in the third quarter.
770,000, at least ten years15.
2%, of which new energy passenger car sales4.
520,000 vehicles, 29 in the past ten years.
5%, mainly due to the impact of early consumption overdrafts in the transition period; fuel passenger car sales6.
08,000 vehicles, an increase of 3 per year.
8%, mainly due to the popularity of Song Pro.
Company Q3 achieved revenue of 316.
380,000 yuan, a ten-year average of 9.
2%, previous sales performance, mainly due to the rapid growth of mobile phone parts and assembly business.
The official period began on June 26. The national subsidy further declined and the land subsidy was cancelled, dragging 成都桑拿网 down the profit of new energy passenger vehicle bicycles.
200,000 yuan, exceeding the expected minimum of 88.
5%, which is the lower limit of the black performance forecast range.
The extent of the reduction in gross profit margin due to supplementary tax rebates, and the expenses during the period have been optimized.
The company’s gross profit margin in the third quarter was 13.
9%, a decrease of 3 per year.
3 averages, down 1 from the previous month.
The five averages are mainly to compensate for the complications caused by the decline in new energy gross profit margin caused by the decline.
Expense rate during Q3 is 12.
6%, a decline of 0 per year.
Nine single ones, with good control, among which the sales expense ratio and financial expense ratio decreased by 1.
1 digit and 0.
9 numbers, the management expense rate (including research and development) increases by 1 number every year.
Looking forward to the fourth quarter, the volume and profit of new energy passenger vehicles are still under pressure, and the performance continues to break through the segmentation.Affected by the downward impact of the fuel vehicle price system and the obvious retreat of the supplement, the sales volume of the new energy vehicle industry in the fourth quarter fell short of expectations, and the company’s sales continued to be under pressure; supplementing the retirement slope, the profit of new energy passenger vehicle bicycles remained at a low level.Quarterly performance pressures are still resisting.
BYD is a leader in new energy vehicles, with short-term performance under pressure and long-term growth.
1) New energy passenger cars: In 2019, the company will expand and retreat. The short-term profit scale will increase, and the long-term expansion of scale effect and cost reduction will increase the company’s profit.
2) Power battery: Leading technology and cost advantages, huge development space after opening external supply.
Considering that the sales volume and profitability of new energy vehicles are worse than expected, we will change the EPS for 19/20/21 from 0.
41 yuan is reduced to 0.
21 yuan (down 33% in 19 years), corresponding to PE of 76X, 48X and 39X.
Risk Warning: 1.
Increased competition has led to lower-than-expected sales of new energy vehicles; 2.
Complementing the excellent downhill has resulted in a bicycle profit expansion exceeding expectations.