BYD (002594): New Energy Vehicle Market Share Increases and Continues Development of New Energy Commercial Vehicle Business

BYD (002594): New Energy Vehicle Market Share Increases and Continues Development of New Energy Commercial Vehicle Business

The core view performance is in line with expectations.

Operating income for the first half of the year was 621.

84 ppm, an increase of 14 years.

8%, net profit attributable to mother 14.

5 ppm, an increase of 203 in ten years.

6%, net profit of non-attributed mother 7.

400 million, an annual increase of 210.

0%, EPS is 0.

49 yuan.

The higher net profit growth was mainly due to the increase in gross profit margin and the decrease in period expenses.

The company expects that net profit attributable to mothers will increase year by year in the first three quarters of 20191.

8% to 14.

9%.

Affected by the subsidy decline, the gross profit margin decreased in the second quarter from the previous quarter, and the cost control was strengthened during the period.

The gross profit margin for the first half of the year was 17.

1%, increase by 1 every year.

Two averages, gross margin of 15 in the second quarter.

3%, down 3 from the previous month.

7 averages, which are expected to be mainly affected by subsidy subsidence.

Period expenses13.

4%, a decrease of 1 per year.

1 unit.

Net cash flow from operating activities -20.

6 trillion, compared with -14 in the same period last year.

The net profit increased by US $ 600 million, mainly due to the increase in cash paid for purchasing goods and receiving labor services.

The semi-annual inventory was 280.

48 ppm, an increase of 12 per year at the end of last year.

2%.

The market share of new energy vehicles has steadily increased.

Revenue of new energy vehicles in the first half of the year was 254.

48 ppm, an increase of 38 in ten years.

8%, accounting for 40% of revenue.

9%.

Sales of new energy vehicles in the first half of the year14.

570,000 units, an increase of 94 in ten years.

5%; market share increased from 20% in 2018 to 24% in the first half of 2018.

The company’s new Yuan EV, e5 and Tang DM are among the top five new energy vehicle sales. The new dynasty series of pure electric vehicles will be equipped with the e platform, which will effectively reduce costs; the new e series pure electric vehicles based on the e platform will fully cover new energyMarket segments.

In July, the company reached a cooperation 杭州夜网论坛 with Toyota Motor to jointly develop pure electric models for the Chinese market.In the second half of the year, models such as e2, e3, and new Qin EV were successively launched. It is expected that after the intensive listing of new models, the company’s new energy vehicle sales will maintain a high growth rate.

The company has steadily expanded its new energy commercial vehicle business.

The company continued to expand the electrification of buses and completed the delivery of electric buses to the United Kingdom, Norway, Belgium, Spain, Singapore and Ecuador in the first half of the year.

The company develops the application of new energy vehicles in the field of commercial vehicles, and reports that a series of pure electric intelligent mud trucks have sold more than a thousand units, becoming a new growth point for new energy commercial vehicle business.

Financial Forecast and Investment Suggestions: Slightly adjust the income and gross profit margin, and forecast EPS for 2019-2021.

29, 1.

72, 2.

00 yuan (originally 1.

53,1.

79, 2.

01 yuan), comparable companies are new energy vehicles, power batteries and other related companies. Comparable companies have an average PE assessment of 32 times in 2020, with a target price of 55.

04 yuan, maintaining the overweight level.

Risk reminder: New energy vehicles, traditional car sales exceed expected risks, new energy vehicle replacement shrinks more than expected risks, government subsidies, etc. are lower than expected, and mobile phone parts business is lower than expected risks.