Description of the event
BYD announced production and sales for May. The company's overall sales volume in May was 331,800 units, up 38.1% year on year, up 5.9% month on month, passenger car sales volume was 330,500 units, up 38.2% year on year, up 5.9% month on month. Of these, pure electric sales were 146,400 units, up 22.4% year on year, up 8.9% month on month, and hybrid sales volume was 184,400 units, up 54.1% year on year and 3.7% month on month.
Incident comments
The release of fifth-generation DM technology combined with the launch of new models. The pace of wholesale sales resumed strongly, and exports continued to increase. The company sold 335,500 passenger cars in May, up 38.2% year on year and 5.9% month on month. From January to May 2024, the cumulative sales volume of passenger cars was 1.267 million units, an increase of 27.1% over the previous year. By brand, Dynasty Marine sold 315,000 units in May, up 38.2% year on year, up 5.8% month on month; Tension sold 12,223 units, up 11.1% year on year, up 9.9% month on month; Equation Panther sold 2430 units, up 15.2% month on month; Look up to sales volume of 608 units, down 36.1% month on month. Looking at the subregion, export sales volume in May was 37,000 vehicles, up 267.5% year on year, down 8.6% month on month.
Create an era of fuel consumption 2, balance profit and cost performance in pricing, and start a new cycle of double share profit growth. BYD officially released the fifth-generation DM plug-in hybrid technology and will soon be mass-produced, leading the global plug-in hybrid technology and pioneering an era of leading fuel consumption 2. BYD's next-generation DM5 plug-in hybrid technology can achieve the world's highest engine thermal efficiency of 46.06%, the world's lowest power loss fuel consumption of 2.9 L per 100 kilometers, CLTC electricity consumption reaches 10.7 kWh/100 km, acceleration of 7.5 s per 100 km, and can reach the world's longest comprehensive battery life of 2,100 km. The pricing of the Qin L DM-i and Navy Seal 06 DM-i is 14,000-20,000 higher than the Honor version, in exchange for the longer pure electric range and full life cycle economy of lower end models, which is expected to become a hit.
Technology and scale construction surpass the competitiveness of the industry, and advance overseas and high-end efforts to reach a new peak. The company will usher in a big year of new technology and new products in 2024. With the support of the DM5.0 and e4.0 platforms, Dynasty Ocean Network will usher in a facelift, continue to upgrade its product capabilities, and stand firm in the mainstream market. Tension, Looking, and Equation Panther are rich in model reserves, speeding up the deployment of the high-end market. Overseas travel continues to gain strength, and overseas channels and model matrices will be further improved. Supported by the scale effect, with overseas expansion and high-end expansion, profitability is expected to remain high without fear of competition. The company's net profit from 2024-2026 is estimated to be 386, 479, 55.7 billion yuan, corresponding to PE 17X, 14X, and 12X, maintaining a “buy” rating.
Risk warning
1. Weak market demand caused sales of new energy vehicles to fall short of expectations; 2. The cost reduction of power batteries fell short of expectations.