Source: Brokerage China Author: Chen Xi
New energy vehicle companies' February report cards have been released in batches!
On the evening of March 1, several NEV companies released production and sales data for February. Since 2024, the sales growth rate of many car companies has slowed, and the recent February coincided with the Lunar New Year, which is the traditional low season for automobile sales. On a month-on-month basis, the overall sales of the industry declined; on a year-on-year basis, some car companies reversed the market. Cyrus sold 30,257 new energy vehicles in February, an increase of 360.04% over the previous year.
Some industry insiders said that 2021 and 2022 are a period of rapid development for the NEV industry, and the growth rate has already slowed since 2023. Some industry insiders expect this trend to continue in 2024, and car companies will be drastically reshuffled.
Cyrus sales surged 360% against the market in February
On the evening of March 1, several NEV companies released production and sales data for February.
BYD announced on the Hong Kong Stock Exchange that it sold 122,311 new energy vehicles in February, compared to 19,3655 units in the same period last year. From January to February, cumulative sales volume was 323,804 vehicles, down 6.14% year on year.
It is worth mentioning that Cyrus's production and sales data for February is particularly impressive. According to the February 2024 production and sales report issued by Cyrus, the company sold 30,257 new energy vehicles in the same month, a sharp increase of 360.04% over the previous year; the cumulative sales volume of new energy vehicles from January to February reached 6,7095 units, an increase of 485.37%. According to information, in February, AITO Quanjie delivered 21,142 new cars, of which 18,479 new M7 vehicles were delivered, with a cumulative total of more than 100,000 units delivered.
Recently, Cyrus's stock price performance was also impressive, rising more than 60% since February. As of March 1, 2024, the revenue was 92.3 yuan/share, with a total market value of 139.4 billion yuan.
In addition, Ideal Auto also achieved year-on-year growth. According to February delivery data published on its official Weibo, a total of 2,051 new vehicles were delivered in February, an increase of 21.8% over the previous year. Since delivery, the cumulative number of Ideal Cars delivered has reached 68,4780 units. Li Xiang, chairman and CEO of Ideal Auto, said that with the launch and delivery of new models, the goal is to return to the monthly delivery level of 50,000 vehicles in March.
Revenue exceeded 100 billion dollars, and Ideal Auto's stock price surged nearly 70% in February
Recently, the interest of Ideal Auto in the capital market has increased significantly.
Recently, Ideal Auto released financial reports showing that it achieved revenue of 123.85 billion yuan for the full year of 2023, an increase of 173.5% over the previous year, making it the first new-power car company in China to exceed 100 billion yuan in revenue. Net profit in 2023 was 11.81 billion yuan, while net loss in 2022 was 2.03 billion yuan, achieving full profit since delivery, making it the third NEV company in the world to achieve profit after Tesla and BYD. Among them, net profit for the fourth quarter of 2023 was 5.75 billion yuan, an increase of 2068.2% over the previous year. According to delivery data, 37,6030 vehicles were delivered throughout the year, an increase of 182.2% over the previous year.
Li Xiang said that significant growth in scale, continuous deepening of R&D, and continuous improvement in operating efficiency drove the company to achieve the best financial performance in history in 2023, and also laid a solid foundation for the ideal car to enter 2024, when the product matrix is richer and market demand is more diverse.
Observe the trend of Ideal Auto's stock price. Since February, the stock price has continued to rise. Both US stocks and Hong Kong stocks have risen by nearly 70%, and are close to historical peaks. The latest total market value reached 48.679 billion US dollars.
Some fund managers said that the strong growth and profitability shown in their financial reports has undoubtedly brought confidence to the entire NEV market. This is expected to further encourage other NEV companies to increase investment and accelerate technology research and market expansion, thus promoting the rapid development of the entire industry. At the same time, the success of this car company has also intensified competition in the NEV market. Other car companies may see its successful model and try to replicate or surpass it. Currently, the market has begun to see competitors for this car company's benchmark models one after another, which may lead to the emergence of more innovative products and services in the market, thus reshaping the entire competitive landscape.
Renewable energy vehicle company reshuffle intensifies
2021 and 2022 are a period of rapid development for the NEV industry. The growth rate has already slowed since 2023. Some industry insiders expect this trend to continue in 2024, and car companies will be drastically reshuffled.
According to the data, in 2021, production and sales of new energy vehicles in China reached 3.545 million units and 3.51 million units, respectively, an increase of 160% over the previous year; in 2022, production and sales of new energy vehicles reached 7.058 million units and 6.887 million units respectively, up 96.9% and 93.4%, respectively. Production and sales of new energy vehicles reached 9.587 million units and 9.495 million units respectively in 2023, with year-on-year increases of 35.8% and 37.9%, respectively.
A person from a car company said that at present, subsidies for new energy vehicles are gradually being reduced, and the automobile market penetration rate has reached a certain level. It is still difficult to determine whether technologies such as battery life and driverless driving can stimulate consumers to buy and exchange cars; the entire industry will face a slowdown in growth.
Industry observers, on the other hand, said that in the past 2023, only 4 NEV companies achieved their annual sales targets. The reshuffle of the industry may intensify in 2024, industry concentration will increase, and car companies need to enhance their competitiveness in multiple dimensions.
Li Bo, fund manager of Cinda Australia Asia Fund, believes that the NEV market is no longer dominated by a single brand or single technology, but is showing a diversified competitive pattern. There are not only new energy models launched by traditional car companies, but also new car builders from emerging technology companies, as well as technology companies entering across borders. These competitors with different backgrounds and strengths are striving to seize market share and promote the rapid development of the market. One of the competitive focuses of the NEV market is technological innovation. We are focusing on the technological innovation of various car companies. Currently, all major car companies are increasing their R&D investment to drive breakthroughs in key technologies such as battery technology, driving technology, and intelligent driving. Whoever can take a step ahead in technology can get a head start in the market. For example, overcharging and intelligent driving are all necessary places in the current new battleground for NEV companies, so the next NEV war is not just about price, but also about technology, products, services, etc.
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