Chinese leading automaker BYD reportedly secured revenue of RMB 117.1 billion ($16.1 billion) in Q3 2022, according to CnEVPost. As per the company’s latest earning report, it reflects an increase of 115.6% year-on-year (YoY) and 39.8% over the previous quarter.
Quarterly revenue
During the third quarter, BYD’s net profit attributable to shareholders increased by 350.1% YoY and 105.1% over the previous quarter to RMB 5.7 billion ($786 million).
Quarterly net profit
BYD indicated in an earnings preview released on October 17 that it anticipates a Q3 2022 net profit of RMB 5.5 billion to RMB 5.9 billion.
However, BYD’s reported net profit is slightly under its forecast. The company’s third-quarter net profit was RMB 5.3 billion after subtracting non-recurring gains and losses. Nonetheless, it increased by 923.2% from RMB 518 million during the same quarter last year.
Relevant research notes
According to a research note published on October 23 by Guosen Securities analyst Tang Xuxia’s team, China’s market for new energy vehicles continued to expand in the third quarter. The team wrote:
“The company’s new energy vehicle sales maintained a strong year-on-year growth, and the scale effect increased quarter by quarter, which effectively alleviated the profit pressure caused by the increase in upstream raw material prices.”
From 2022 through 2024, the team forecasts BYD would sell 1.78 million, 3.2 million, and 4 million vehicles, averaging RMB 160,000, RMB 170,000, and RMB 170,000 in sales revenue per vehicle, respectively.
Additionally, Soochow Securities stated in a research note dated October 18 that BYD delivered more post-price rise models in the third quarter. It resulted in a significant increase in the period’s profitability from its automotive market. The team commented:
“The performance exceeded market expectations, and the profit of bicycles increased significantly.”
That said, the team predicts that BYD will earn around RMB 10,000 per vehicle on average in Q3. They also indicated that BYD’s average income per vehicle for the entire 2022 is estimated to be around RMB 7,000, an increase of over two times YoY.
It is not surprising that the leading manufacturer of electric vehicles keeps growing as the demand for new energy vehicles increases. BYD continues to prove why it is a player to watch with its innovative technologies.
