Chinese EV and power battery giant BYD ceased its ICE vehicle production and sales in March 2022. Thereafter, BYD has only offered new energy vehicles in the rapidly growing industry in China and foreign markets.
Now, it anticipates its Q4 2022 net profit to reach RMB 7.7 billion ($1.1 billion).
As for the Full Year 2022, the EV maker projects a net profit of RMB 16 billion to RMB 17 billion after deducting non-recurring profits and losses. Per the earnings preview it released on January 30 on the Shenzhen Stock Exchange, the FY result indicates a YoY growth of 425.42% to 458.26% respectively.
Are these projections achievable?
In the first three quarters of 2022, BYD accumulated RMB 9.3 billion in net profit. That considered, BYD may most probably hit the newest estimate of 6.7 billion to RMB 7.7 billion in Q4 2022.
The estimated net profit indicates a YoY increase of 1013% to 1179%. As for the quarterly record, it represents a YoY increase of 17% to 35%.
BYD’s exceptional performance in Q4 and FY 2022
As per the earnings preview, the Chinese EV giant projects its earnings per share for FY 2022 to reach RMB 5.5 to RMB 5.84.
Furthermore, it disclosed an FY 2022 revenue projection of more than RMB 420 billion.
It is worth noting that the rapidly growing NEV market highly influences BYD’s solid production and delivery in China. Taking advantage of the market’s potential, BYD established itself as the top NEV maker in the world in terms of sales. It has also overcome global supply chain constraints and increasing raw material costs.
For context, BYD reported record-breaking sales of 235,197 NEVs in December 2022. Based on the company’s latest data, it was also the fourth month to report sales of over 200,000 units. Passenger cars accounted for 234,598 of the total sales, while commercial vehicles owned 599 units.
For Q4 2022, BYD saw a YoY sales increase of 156.74% to 683,440 units in its NEV products. That result also represents a quarter-over-quarter growth of 26.87%.
As for the FY 2022 sales, BYD saw a YoY sales growth of 208.64% to 1,863,494 units from just 603,783 units in 2021.
