BYD (002594): Profitability of 3Q passenger car business is under pressure; electric dump trucks provide support
The 3Q19 results are in line with our expectations of the 北京夜网 company’s 3Q19 results: revenue 316.
400 million, a year -9.
8%; net profit attributable to mother 1.
200 million, -88 per year.
0%, the performance is in line with the mid-range report (130-300 million yuan).
At the same time, the company expects a maximum net profit range of 15.
Development trend 3Q19 Gross profit margin decreased sequentially; financial expenses decreased.
The company’s revenue for the third quarter of 19 was 316.
4 ppm, -9% a year; 3Q gross margin 13.
9%, same ring ratio -3.
3 / -1.
5 points; 3Q sales, management and R & D expense ratios are 3 respectively.
3% / 3.
4% / 4.
9% each year are -1.
1 / + 0.
8 / + 0.
3Q finance costs are 5.
0 trillion, a year-on-year decrease of 41%.
3Q investment loss1.
1杭州夜网00 million (Vs3Q181.
5 percent), a certain drag on performance.
3Q returns to mother’s net profit 1.
$ 200 million, deducting non-attribution may be 1.
500 million yuan.
Operating cash flow in the third quarter of 1959.
0ppm, one year -28.
6%; 19Q3 capital expenditure 37.
300 million, a decrease from the previous quarter.
3Q Company actively explored new financing methods, financing 5 billion receivables, and reduced capital costs.
In the third quarter of 19, the company’s net debt ratio was 52.
1%, basically unchanged from the previous month.
3Q plug-in mixed market share increased month-on-month; pure electric market share increased slightly.In the third quarter of 19, BYD’s new energy passenger car sales4.
50,000 units, the previous highest 30%; 35% lower than the previous month, the overall market share reached 20.
6%, a decrease of 0 from the previous month.
Among them, sales of pure electric passenger cars2.
80,000 units, with a market share of 16.
6%, down 3 from the previous month.
1 point; mainly due to the slightly lower-than-expected sales of e-net models, and in addition to some competing products on the network, taxis have seized some markets; the company’s pure electric plug-in hybrid sales1.
70,000 units, with a market share of 33.
7%, an increase of 5 from the previous month.
Song ProDM has higher product power, maintaining the company’s leading position in the plug-in hybrid market.
The profitability of the passenger car business is under pressure; mud trucks provide performance support.
In terms of business, BYD Electronics contributed 3Q net profit to its mother.
0ppm, automotive and photovoltaic business potential.
Due to the limited price increase of 3Q’s terminal (only a small increase through new changes), which is not enough to cover the amount of compensation for the decline, we expect the ride-hailing business to improve, and the dump truck business to support profitability.
Earnings forecasts and estimates Looking forward, the sluggish demand for new energy has added a tax rebate slope, and short-term earnings are still under pressure.
We lower our 2019/20 net profit by 15.
1% and 14.
3% to 17.
600 million and 17.
600 million yuan.
The current BYD A / H corresponds to 73xP / E and 55xP / E in 2019; 73xP / E and 55xP / E in 2020, respectively.
Maintain Outperform rating. According to the segment estimation method, we maintain BYD A / H target prices of 59 yuan and 50 Hong Kong dollars, respectively, with 25% / 26% upside.
Demand for risk terminals continues to be sluggish; policy support is weaker than expected.