BYD’s half-year net profit has already matched last year’s total. I won’t repeat what’s been said, but let me briefly explain why BYD's performance exceeded expectations.
Q1的时候我就以Sales volume + profit per vehicleI analyzed BYD using sales and profit per vehicle in Q1. Interested friends can check out my previous article. At that time, I mentioned that BYD’s sales were no problem at all. Look at how confidently they stated it in their recent earnings forecast:Record-high sales rate with a leading market share(See chart), very impressive.
However, aside from looking at sales, we also need to focus on the key metric of profit per vehicle; otherwise, higher revenue doesn’t mean higher profits, which would be pointless. BYD’s Q1 profit per vehicle was around 2,000–3,000 yuan, isn’t that pitifully low? Keep in mind Tesla’s Q1 profit per vehicle was an astonishing $10,000...
Using the same logic, let’s take a look at BYD’s Q2 results.Sales volumeMoreoverProfit per vehicle
First, let's take a look at the sales:
In Q2, 355,000 vehicles were sold, a 22% increase from the previous quarter, of which180,000 were pure electric, up 26% from the previous quarter,173,000 were plug-in hybrids, up 22% from the previous quarter.
Here’s a brief analysis: The main reason for the better-than-expected performance is actually:
In the orders placed before the company raised prices, the proportion of EVs was not high. In Q1, the company basically completed the delivery of EV orders that were placed before the price hike. Therefore, the overallprice increase per vehicle in Q2 should be around RMB 5,000.Consumers are willing to accept price increases, as evidenced by the sales volume.
So when it comes to单车利润 (per-unit profit), assuming other businesses remain flat, BYD's per-unit profit is6760-...