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On the evening of January 29th, BYD issued a 2023 performance forecast showing that during the reporting period, BYD expects to achieve a net profit of 29 billion yuan to 31 billion yuan, an increase of 74.46% to 86.49% over the same period last year; it is expected to deduct non-net profit of 27.4 billion yuan to 29.7 billion yuan, an increase of 75.22% and 89.92% over the same period last year.

In the performance forecast, BYD said that the new energy vehicle industry will continue to maintain rapid growth in 2023, and BYD's new energy vehicle sales have reached a record high, further consolidating the leading position of new energy vehicle sales in the world. Although the competition in the industry is more fierce, the company relies on the continuous improvement of brand strength, the rapid growth of overseas sales, the continuous expansion of scale advantages and strong industrial chain cost control ability, profitability has been greatly improved, showing a strong resilience.

On January 1, BYD released wholesale sales data, showing that BYD's cumulative sales of new energy vehicles in 2023 was 3024417, an increase of 62.3% over the same period last year, successfully achieving the annual sales target of 3 million vehicles. Among them, there were 1.438 million plug-in hybrid models, an increase of 51.98% over the same period last year, and 1.5748 million pure electric models, an increase of 72.84% over the same period last year.

At present, BYD has launched four major brands, including BYD, Teng Teng, equation Leopard and look up, among which the largest source of sales is BYD, with 2.8745 million cars sold by Dynasty + Ocean net, 127800 cars by momentum, 2001 cars by Wang Wang, and 5712 vehicles by equation Leopard.

In addition, BYD also continues to lay out at sea. In 2023, BYD sold 243000 new energy passenger vehicles overseas, an increase of 334.2% over the same period last year. Since the second half of 2023, BYD has continuously strengthened its overseas layout. In July, BYD announced the construction of a plant in Brazil with a planned annual production capacity of 150000 vehicles; in September, the Uzbek State-controlled Automobile Group announced that it would set up a joint venture with BYD, with an annual production capacity of 500000 units in the first / second phase of the plant, and 300000 units when the third phase was completed; and in December, BYD announced that it would build a new energy vehicle production base in Segad, Hungary.

On January 29th, BYD held a brand launch and launch conference of new models in Rwanda, and officially launched a new pure electric model-PLUS (overseas known as BYD ATTO 3) for the local market, officially opening a new pattern for BYD in Rwanda. It is understood that BYD has reached a cooperation with CFAO Mobility, a well-known local car dealer group.

Soochow Securities Research News pointed out that BYD actively promoted the layout of overseas markets, and overseas markets contributed to the growth of sales. 2024-2025 is the year of products, and sales are expected to be about 4 million and 5 million respectively, up 33% and 25% respectively from the same period last year.

As for BYD's other major business, mobile phone components and assembly, profitability has also increased with the recovery of the consumer electronics industry. BYD said that thanks to the increase in the business share of overseas major customers, the pick-up in demand from Android customers, the rapid growth of the business of new energy vehicles and new smart products, a marked increase in capacity utilization, further optimization of business structure, and significant improvement in profitability, profitability has increased significantly.

Despite the gratifying results, BYD's share price failed to keep up. At present, BYD's share price is 170.96 yuan, with a total market capitalization of 498.27 billion yuan, the lowest since May 2021. The fall in BYD's share price and the price cuts and promotions of many of its models reflect the challenges and pressures it faces. In the highly competitive automobile market, especially in the field of new energy vehicles, BYD needs to constantly strengthen its innovation and competitiveness in order to adapt to market changes and meet the needs of consumers. At the same time, enterprises should also use price reduction promotion strategy cautiously to avoid over-reliance on low-price sales, but should pay attention to the shaping of product quality and brand image. Only through continuous innovation and the promotion of comprehensive competitiveness, enterprises can achieve sustainable development in the field of new energy vehicles.

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