BYD's new energy car sales resumed growth and market share will maintain its lead

In October last year, BYD released China's first cloud-track line with independent intellectual property rights and achieved opening to traffic, and announced that BYD entered the urban rail transit field.

In October last year, BYD released China's first cloud-track line with independent intellectual property rights and achieved opening to traffic, and announced that BYD entered the urban rail transit field. After half a year, how is the cloud track business being promoted today? How much profit can be made for a listed company?

On June 1st, Securities Times “e company invited you to visit famous enterprises” entered BYD in the fifth period. BYD Li Dongfu introduced: "The cloud rail has already obtained orders from many cities in China. The cloud rail lines in Shantou, Guang'an, and Yinchuan have been successively built, some of which will be completed and opened to traffic throughout the year." He predicted that in the coming years The cloud business has grown rapidly and the revenue scale has rapidly increased, and will “rebuild a BYD”.

In this activity, Li Hao also answered in detail the hot issues of general concern in the market such as the performance of listed companies, automotive product planning, overseas investment and construction, and lithium battery technology.

Car sales recover very quickly

This year, the national subsidies for new energy vehicles have seen a large rate of decline, and BYD’s performance in the first quarter was obviously under pressure. Li Yan frankly admitted that it was indeed affected by the policy, but in the first half of the year, "sales resumed very quickly." In 2017, the company's sales growth of new energy vehicles is expected to be basically in line with the industry, and market share will continue to maintain its lead.

According to Li Xin’s explanation, in 2017, New Energy Vehicles implemented a new catalog management, and the first catalogs were only released on January 23, 2017. The time on some models was even delayed until March and April, and the new catalog management was also Affected the sales of new energy vehicles to a greater extent. Industry sales fell about 50% year-on-year in January, and sales of some new energy vehicles fell by 90% or even zero.

In terms of subsidy policies, the new central subsidy policy was introduced at the end of 2016, and local subsidy policies in cities cannot be followed up in a timely manner. As a result, many cities have a policy window period in the first quarter, and there is no local subsidy, which priced new energy automotive products. Sales have had a certain impact.

In addition, the national subsidies for new energy vehicles in 2017 will have a relatively large rate of decline. Considering that local subsidies may not exceed 50% of the central subsidies, the total amount of subsidies in 2017 will fall by as much as 40% from 2016, which will greatly affect the profitability of new energy vehicle manufacturers.

"As a result of the substantial decline in subsidies for new energy vehicles, the company's net profit fell 28.79% year-on-year in the first quarter of this year. In addition, the solar business performed poorly in the first quarter, which also caused certain negative contributions to the company's profits." From January to March this year, the sales of new energy vehicles of the company achieved approximately 600 vehicles, 2,100 vehicles and 6,500 vehicles respectively, and the sales volume recovered very quickly. With the recovery of sales of new energy vehicles, it is expected that the company's earnings will increase significantly in the second quarter compared to the first quarter, but the overall results in the first half of the year will still decline compared with the same period of last year.

Market share will stay ahead

Although "profits are still under pressure because of the impact of subsidies," BYD is still full of confidence in the new energy vehicle market. At the 2106 performance briefing held at the beginning of this year, BYD chief Wang Chuanfu said that the growth of new energy auto business in 2017 will slow down, but this year's sales target is 140,000 to 160,000 units, an increase of 40% year-on-year.

Li Lan also maintained an optimistic view. He believes that in 2016 China's new energy vehicles sold 507,000 vehicles, an increase of 53% year-on-year. The market is generally expected that in 2017, sales of new energy vehicles in China will reach more than 700,000 vehicles, achieving an increase of more than 40%. "In 2017, it is expected that the sales growth of the company's new energy vehicles will be basically the same as the industry, and the market share will continue to be maintained."

The data shows that sales of BYD's new energy vehicles increased by 69.85% year-on-year to 96,000 units in 2016, and sales volume is the largest in the world. BYD's global energy market has reached 13% of the global market, and its market share in China has reached 23%.

Li Hao believes that confidence comes from the new energy vehicles that the company has listed this year. He introduced that in 2017, BYD had a number of models in the field of new energy vehicles, of which the Qin 100 and Tang 100 were put on sale at the end of February, and the plug-in hybrid SUV Song PHEV and pure electric Song EV300 were also officially released in April. And listing. In addition to the above models, in the future, the company will also launch small-size SUV model PHEVs and more high-performance new energy automotive products.

"It is expected that the volume of new models in the future will significantly drive the company's growth in sales of new energy vehicles," said Li Xin.

At present, BYD's "dynasty" series covers cars, SUVs and other market segments. Among them, the car department mainly includes "Qin" and the "Han" models that will be introduced in the future; SUVs include "Don", "Song", "Yuan" and subsequent "Ming" models. Li Wei disclosed that "Han" and "Ming" are expected to be released next year.

As for the issue of whether BYD's “Dynasty” series will become a brand independently, Li’s reply is that it will be combined with consideration of factors.

"Recreating a BYD"

Last year, BYD spent five years developing a newly designed cross-seat single-track “cloud rail” product. Once it landed, orders were in full swing. Li Wei disclosed that BYD has already won orders from more than 10 cities.

"If our order this year is 10 billion yuan, then there will be 30 billion yuan next year, and 60 billion yuan the following year." Li Wei believes that the market space of the cloud track is very large, opening up a broad scope for the company's long-term development. New Blue Ocean.

He said that there are currently more than 100 cities in China planning to build urban rail transit, creating a large market with a demand of up to several trillion yuan. The cloud rail unit price is 200-300 million/km, and 100 km has 200-300 million revenue. The company expects that the cloud business will grow rapidly in the next few years and the revenue scale will increase rapidly, and will eventually “rebuild a BYD”.

Li Yu introduced that based on the advantages of low construction cost of the cloud track and short construction period, cities around the world have shown great interest and strong will to build cloud-traffic transportation. The company has already obtained orders from many domestic cities. Among them, Shantou, Guang'an, Yinchuan and other places have already started construction of cloud-rail lines, and some of them will be completed and opened to traffic within the year.

"In the future, BYD plans to promote 'railway' products in more cities, commit itself to improving the prevailing traffic jams in the current city, and jointly promote the development of new energy buses and taxis to provide cities with a comprehensive solution to low-carbon and environmental protection. Program." Li Yu said.

In addition, BYD has also accelerated its overseas deployment. BYD New Energy has successfully operated in more than 200 cities in more than 50 countries and regions including the United States, Japan, the United Kingdom, Brazil, the Netherlands, and Australia.

In May this year, BYD also signed a memorandum of understanding (MOU) with Ecuador to announce that it will invest in the construction of a pure electric bus plant in the country. This is the second electric bus plant that BYD plans to establish in South America. It is also the fifth overseas bus plant that BYD has built after the United States, Brazil, Hungary, and France.

Li Wei said that the company will also actively consider investing in countries and regions along the “One Belt and One Road” in the future.

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