Investment Summary
BYD Took a Firm Lead by Achieving Exceptional Results in Q3
In the first three quarters of 2024, BYD recorded total revenue of RMB502,251 million, up
18.94% yoy, and net profit attributable to the parent company of RMB25,238 million, up
18.12% yoy. The basic ESP was RMB8.68, from RMB7.35 in the same period of the previous
year. By quarter, the Company’s net profit attributable to the parent company was RMB4.57
billion in Q1, RMB9,062 million in Q2 and RMB11,607 million in Q3, climbing by 10.62%,
32.8% and 11.47% yoy, respectively, and revenue was RMB124,944 million in Q1,
RMB176,182 million in Q2 and RMB201,125 million in Q3, representing yoy growth rates of
3.97%, 25.89% and 24.04%, respectively..
BYD’s Gross Profit Margin Recovered Notably Q-o-Q and R&D Input was Increased
In Q3, the Company’s gross profit margin stood at 21.89%, the fifth highest since the
Company’s listing and representing a substantial qoq increase of 3.2 ppts, despite a slight
yoy decrease of 0.23 ppts. The main reason lies in the optimised sales structure of the
Company’s models in Q3, in contrast to the fierce price competition in the auto market in Q2.
The increased sales share of DM5.0 and the scale effect driven by lower raw material prices
and expanding sales (sales volume in Q3 surged by 38% yoy and exceeded one million)
significantly bolstered profitability.
In Q3, the sales expense ratio was 4.77%, up 0.83 ppts yoy as primarily driven by higher
advertising and exhibition expenses and amortisation charges, and the administration
expense ratio was 2.34%, up 0.21 ppts yoy. To maintain its competitive edge in battery
technology and autonomous driving, the Company increased R&D input up to RMB13.7
billion, up 52% yoy and 23.4% qoq, representing an R&D expense ratio of 6.81%, basically
flat with that of the same period of the previous year. The financial expense ratio rose by
0.58 ppts yoy to 0.48%, mainly due to the impact of exchange rate changes on exchange
gains and losses. Excluding the performance of BYD Electronic, automobile business saw a
growth rate of financial data basically the same as the overall growth rate, and a net profit
attributable to the parent company of RMB10.59 billion, a yoy increase of 12.6% and qoq
increase of 28.1%. This translated to a single-vehicle net profit of RMB9.3 thousand,
reflecting a qoq increase of 7.3% as driven by the roll-out of the high-end DM-i 5.0
generation in the Company’s Dynasty-series and Ocean-series, which boosted the average
single-vehicle price and profit. However, on a year-on-year basis, the single-vehicle net
profit fell by 17%, mainly because the Company introduced the lower-priced Glory edition to
cope with the market’s price war, resulting in a fall in the average single-vehicle price.
In Q3, the operating cash flow saw a net inflow of RMB42,095 million, up RMB26.2 billion
yoy and RMB38.1 billion qoq. As at the end of September, the Company spent 71.9 days on
inventory turnover and 38.0 days on accounts receivable turnover, representing a significant
qoq improvement
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Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.
