BYD (002594) 2019 Interim Report Comments: The first half of the year continued to be strong and the future will gradually reduce costs through multiple measures

BYD (002594) 2019 Interim Report Comments: The first half of the year continued to be strong and the future will gradually reduce costs through multiple measures

[Investment points]The semi-annual report performance has doubled, and the pressure in the third quarter has increased: the company released its 2019 interim report results, and the company’s operating income in 2019H1 was 621.

84 ppm, an increase of 14 years.

84%; net profit attributable to mother 14.

55 ppm, an increase of 203 in ten years.

61%; net profit of non-attributed mothers was realized7.

400,000 yuan, an increase of 209 in ten years.

98%, meanwhile, the company disclosed that the profit forecast for Q1-3 of 19 was 15.

55-17.

550,000 yuan, corresponding to Q3 single quarter performance of 130 million yuan.

The substantial retreat of new energy supplements has a contradictory effect on profitability for companies with new energy revenues that account for more than 70%. Overlaps in the second quarter after the second quarter of rushing to install new energy vehicles have reduced demand, and the company ‘s third quarter profit pressureincrease.

Single quarter results: The company achieved revenue of 318 in Q2 2019.

80 ppm, a ten-year increase of 8.

39%, an increase of 5 from the previous month.

20%; net profit attributable to mother 7.

50,000 yuan, an increase of 87 in ten years.

12%, down 5 from the previous month.

99%; net profit deducted from non-attributed mothers3.

28 ppm, a 195-year increase.

28%, down 20 from the previous month.

28%.

The product structure is continuously optimized, and new models are continuously launched.

Company 19H1 sells cars 22.

80,000, yoy + 1.

6%, but the product structure has been significantly optimized, and the market competition for fuel-fueled vehicles 19H1 is 8%.

240,000 vehicles, the proportion dropped from 67% last year to 36%, new energy sales in 19H114.

570,000 units, the proportion rose from 33% last year to 64%.

The company’s product line has been continuously enriched. The first five-seater A + -class SUV Song Pro under the BNA architecture was launched in July. The second half of the year will continue to launch e2, e3, new Qin EV and other products. In 2020, there will be the first equipped with phosphoric acid.The dynasty series of iron lithium batteries will drive the continuous growth of sales and market share.

The combo boxing continues to reduce costs and gradually achieve parity with the cost of fuel vehicles.

After the substantial withdrawal, the company increased the profit margin of bicycles through various cost reduction methods, and the gross profit margin of the automobile business in 19H123.

22%, a two-year high, 武汉夜网论坛 an increase of 2 over 18H2.

8 pct, 18H1 rise 4 every year.

46.

The current DM platform used by the company is the third generation and the cost is high. In 2021, the fourth generation DM platform will be used to significantly reduce costs while maintaining existing performance. In addition, the company will partially use high volume density lithium iron phosphate batteries.The cost can be reduced by more than 30%; in terms of in-vehicle systems, the company will develop different Dilink systems for different vehicle models to reduce the cost of automotive electronics.

[Investment suggestion]The company’s sales of new energy vehicles accounted for 2/3 of the company’s sales, and the impact of subsidized declines exceeded the company’s performance. After the third quarter, the impact of supplementary shrinkage on the 上海夜网论坛 company’s performance was reduced.Profitability may be under pressure, but due to the company’s strong demand for electric commercial vehicle business, electric mud trucks have excellent profitability and can partially smooth the performance of the complementary adjustment period.

In terms of mobile phone business, benefiting from the wave of 5G mobile phone replacement, the company’s electronic parts business revenue will grow rapidly.

PV revenue remains stable, but the profit side may decline slightly.

Due to the significant pressure on the profitability of vehicle models in the second half of the year, and industry demand was cold in the third quarter, we lowered the company’s revenue and attributed it to the net profit forecast of the company. It is estimated that the company’s total operating income for 19/20/21 will be 1317.

37/1426.09/1527.

78 million, net profit attributable to mother is 21.

95/35.

62/44.

09 million yuan, EPS 0.

8/1.

31/1.

62 yuan, corresponding to PE 62/38/31 times, maintaining the “overweight” level.

[Risk warning]The company’s battery cost reduction effect exceeds expectations; the new energy vehicle market’s prosperity remains low.