On February 27th, the Hong Kong stock market of Ideal Automobile jumped short and opened high. As of the morning close, the stock price of Ideal Automobile has surged by 21.02%, with a market value exceeding HKD 300 billion, reaching HKD 359.3 billion.
In the US stock market that was traded earlier, Ideal Automobile also opened high with a short opening, and its stock price surged 18.79%.
On the evening of the previous day, Ideal Automobile announced its 2023 performance - achieving its first annual profit with a net profit of 11.8 billion yuan and a delivery volume increase of 182%. On February 26th, Ideal Automobile announced its best financial performance in history.
Industry insiders believe that the profitability of Ideal Automobile benefits from a dual victory in strategy and tactics. In the process of increasing battery prices, Ideal Automobile adopts an extended range technology path to avoid compressing the company's profit margin and achieve good market performance.
Best Financial Performance in History: Revenue of 100 Billion, Profit of 10 Billion [align]
According to the financial report, the total revenue of the company in 2023 was 123.85 billion yuan, an increase of 173.5% from 45.29 billion yuan in 2022; The net profit was 11.81 billion yuan, while the net loss in 2022 was 2.03 billion yuan; The annual delivery volume was 376030 vehicles, a year-on-year increase of 182.2%.
Among them, in the fourth quarter of 2023, Ideal Automobile's revenue was 41.73 billion yuan, a year-on-year increase of 136.4%; Net profit of 5.75 billion yuan and free cash flow of 14.64 billion yuan; Quarterly delivery of 131805 vehicles, a year-on-year increase of 184.6%, with a new energy market share of over 200000 yuan reaching 16%, ranking first among Chinese automotive brands.
There has also been significant improvement in cash flow. As of the end of 2023, the company's cash reserves were 103.67 billion yuan.
In terms of R&D investment, the company's R&D expenses for the whole year of 2023 were 10.59 billion yuan, a year-on-year increase of 56.1%. Among them, the company's R&D expenses in the fourth quarter of 2023 were 3.49 billion yuan, a year-on-year increase of 68.6%.
In addition, Ideal Automobile predicts that its performance in the first quarter of 2024 will reach a new high for the same period, with an expected delivery volume of 100000 to 103000 vehicles, a year-on-year increase of 90.2% to 95.9%; The revenue reached 31.25 billion yuan to 32.19 billion yuan, a year-on-year increase of 66.3% to 71.3%.
Regarding the latest performance, Li Xiang, Chairman and CEO of Ideal Automobile, stated that in the fiercely competitive new energy vehicle market of 2023, Ideal Automobile has achieved excellent results with three models of the Ideal L series, with a year-on-year increase of 182.2% in delivery volume, reaching 376030 units, becoming the sales champion of new energy vehicles worth over 300000 yuan in the Chinese market.
According to a research report released by CICC, the profit performance of Ideal Automobile in the fourth quarter of 2023 reflects the operational resilience driven by the release of economies of scale. Although market competition intensifies, the company maintains a stable gross profit margin and various financial indicators, with quarterly and bicycle profits reaching new highs, exceeding market expectations.
"The ideal success comes from a full understanding of the Chinese domestic automotive market - using the 'dual energy strategy' to solve the problems of urban license plate restrictions and high fuel consumption of large-sized SUVs. The positioning of the 'three child dad car' aligns with the user satisfaction point in the Chinese automotive market, which mainly focuses on 'comfort for family (multi person) travel', and continuously cultivates this positioning to achieve a dual victory in strategy and tactics." Jia Zhichao, Chief Observer of the Institute of Pattern Research for Automobile, said in an interview with Dahe Finance Cube reporters.
"It is worth noting that Ideal Automobile, based on extended range, did not face significant cost pressure like other new energy vehicle companies in the process of increasing battery prices. From the results, Ideal Automobile's cash flow situation is also healthier," said Jia Zhichao.
He believes that in the current environment, the health of cash flow will determine whether a company can keep up with market changes in consumption downgrading. Therefore, Ideal Automobile's insistence on cost control has also earned them profit margins.
From the perspective of sales volume and growth rate, the advantages of Ideal Automobile are quite obvious.
Data shows that in 2023, Ideal Automobile's annual sales ranked in the top three with 370000 vehicles, followed by BYD (3.02 million vehicles) and GAC Aion (480000 vehicles).
From the year-on-year growth rate of annual sales, Ideal Automobile has a leading year-on-year growth rate, with a year-on-year increase of over 180%, while Nezha Automobile has a negative year-on-year growth rate. In terms of annual target achievement rates, BYD, Ideal Automobile, and Lantu Automobile exceeded their annual targets, followed by GAC Aion and Wenjie with achievement rates of 96.0% and 94.0%, respectively.
On February 19th, Ideal Automobile announced that the 2024 Spring Launch Conference of Ideal Automobile will start at 3:00 pm on March 1st. The Ideal MEGA and the 2024 Ideal L series are about to be officially launched.
According to the financial report, the total revenue of the company in 2023 was 123.85 billion yuan, an increase of 173.5% from 45.29 billion yuan in 2022; The net profit was 11.81 billion yuan, while the net loss in 2022 was 2.03 billion yuan; The annual delivery volume was 376030 vehicles, a year-on-year increase of 182.2%.
Among them, in the fourth quarter of 2023, Ideal Automobile's revenue was 41.73 billion yuan, a year-on-year increase of 136.4%; Net profit of 5.75 billion yuan and free cash flow of 14.64 billion yuan; Quarterly delivery of 131805 vehicles, a year-on-year increase of 184.6%, with a new energy market share of over 200000 yuan reaching 16%, ranking first among Chinese automotive brands.
There has also been significant improvement in cash flow. As of the end of 2023, the company's cash reserves were 103.67 billion yuan.
In terms of R&D investment, the company's R&D expenses for the whole year of 2023 were 10.59 billion yuan, a year-on-year increase of 56.1%. Among them, the company's R&D expenses in the fourth quarter of 2023 were 3.49 billion yuan, a year-on-year increase of 68.6%.
In addition, Ideal Automobile predicts that its performance in the first quarter of 2024 will reach a new high for the same period, with an expected delivery volume of 100000 to 103000 vehicles, a year-on-year increase of 90.2% to 95.9%; The revenue reached 31.25 billion yuan to 32.19 billion yuan, a year-on-year increase of 66.3% to 71.3%.
Regarding the latest performance, Li Xiang, Chairman and CEO of Ideal Automobile, stated that in the fiercely competitive new energy vehicle market of 2023, Ideal Automobile has achieved excellent results with three models of the Ideal L series, with a year-on-year increase of 182.2% in delivery volume, reaching 376030 units, becoming the sales champion of new energy vehicles worth over 300000 yuan in the Chinese market.
According to a research report released by CICC, the profit performance of Ideal Automobile in the fourth quarter of 2023 reflects the operational resilience driven by the release of economies of scale. Although market competition intensifies, the company maintains a stable gross profit margin and various financial indicators, with quarterly and bicycle profits reaching new highs, exceeding market expectations.
Industry: Achieving dual victories in strategy and tactics
"The ideal success comes from a full understanding of the Chinese domestic automotive market - using the 'dual energy strategy' to solve the problems of urban license plate restrictions and high fuel consumption of large-sized SUVs. The positioning of the 'three child dad car' aligns with the user satisfaction point in the Chinese automotive market, which mainly focuses on 'comfort for family (multi person) travel', and continuously cultivates this positioning to achieve a dual victory in strategy and tactics." Jia Zhichao, Chief Observer of the Institute of Pattern Research for Automobile, said in an interview with Dahe Finance Cube reporters.
"It is worth noting that Ideal Automobile, based on extended range, did not face significant cost pressure like other new energy vehicle companies in the process of increasing battery prices. From the results, Ideal Automobile's cash flow situation is also healthier," said Jia Zhichao.
He believes that in the current environment, the health of cash flow will determine whether a company can keep up with market changes in consumption downgrading. Therefore, Ideal Automobile's insistence on cost control has also earned them profit margins.
From the perspective of sales volume and growth rate, the advantages of Ideal Automobile are quite obvious.
Data shows that in 2023, Ideal Automobile's annual sales ranked in the top three with 370000 vehicles, followed by BYD (3.02 million vehicles) and GAC Aion (480000 vehicles).
From the year-on-year growth rate of annual sales, Ideal Automobile has a leading year-on-year growth rate, with a year-on-year increase of over 180%, while Nezha Automobile has a negative year-on-year growth rate. In terms of annual target achievement rates, BYD, Ideal Automobile, and Lantu Automobile exceeded their annual targets, followed by GAC Aion and Wenjie with achievement rates of 96.0% and 94.0%, respectively.
On February 19th, Ideal Automobile announced that the 2024 Spring Launch Conference of Ideal Automobile will start at 3:00 pm on March 1st. The Ideal MEGA and the 2024 Ideal L series are about to be officially launched.
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