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  • Global X China Electric Vehicle and Battery ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
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BYD 3Q24 Results
Solid Beat on Profitability

By: Jeff Huang

BYD reported solid 3Q24 results on October 30 after market. 3Q24 revenue was Rmb201.1bn, +24.0% YoY and +14.2% QoQ. Notably, BYD’s quarterly revenue tops Tesla for the first time and becomes the largest EV company globally (in terms of quarterly sales). Group GPM was 21.9%, +3.2ppts QoQ, and GP per vehicle increased by 16.7% QoQ to Rmb35.6k. The strong profitability is bolstered by expanding unit sales and margin-enhancing DM-i 5.0 deliveries. BYD continues to demonstrate strong R&D commitment with R&D expenses expanding by 52% QoQ and 23% YoY as the company accelerated investment in EV technology and intelligent driving. 3Q24 net profit of Rmb11.6bn was +28% QoQ and 11% YoY, reaching a new historical high.

Outlook

BYD maintained a solid 35% market share in 3Q24 thanks to its product competitiveness and strong execution. Auto trade-in program and seasonality should support a robust EV demand towards year end. In the longer term, BYD will continue to benefit from the solid PHEV opportunity both domestically and overseas. The solid new launch pipeline in 2025E should help BYD to maintain its dominant position in PHEV market. The continued pickup in overseas retail sales momentum, together with the start of local production should drive an accelerated overseas revenue growth. Despite strong growth momentum, BYD is still trading at the lower end of historical valuation.

Global X Electric Vehicle and Battery ETF (2845 / 9845) is well positioned to ride on the strong EV sales momentum and improving battery industry landscape in China. In addition, the continue decrease in lithium prices should also lower the costs for battery and automakers and thus support better profitability outlook across the value chain. CATL also reported 3Q24 results with strong profitability as driven by product mix premiumization and cost savings from manufacturing advantages. CATL and BYD are the top 2 holdings for the ETF with combined weighting of c.40%. See our previous note on CATL results here.

Related Global X ETF

Global X China Electric Vehicle and Battery ETF (2845 / 9845 HK)
SEHK Listing Date 17 Jan 2020
Reference Index Solactive China Electric Vehicle and Battery Index NTR
Primary Exchange Hong Kong Stock Exchange
Ongoing Charges Over A Year 0.68%.p.a.1
Product page Link

Source: Mirae Asset, 31 Oct 2024. 

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