Ideal Car's revenue and gross profit margin in the third quarter of 2021 reached a record high, and its growth potential was slightly insufficient

Summary:On November 29th, 2021, Ideal Automobile released its third-quarter financial report. The financial report shows that the ideal car revenue was RMB 7.78 billion, a year-on-year increase of 209.7%; Among them, the gross profit was RMB 1.81 billion, the gross profit margin was 23.3%, and the same period last year was 19.8%; In the third quarter, automobile sales were RMB 7.39 billion, up 199.7% year-on-year, and 25,116 Li ONE vehicles were delivered, up 190.0% year-on-year. Ideal achieved strong performance in the third quarter, in which revenue, automobile profit rate and operating cash flow reached a record high. Stimulated by the news, the ideal pre-market rose by 9%.

Li, CEO of Ideal Auto, said: "Under the background of industry-wide chip shortage, Ideal Auto delivered 25,116 Ideal ONE in the third quarter, an increase of 190.0% year-on-year, achieving a quarterly high, once again highlighting the strong attraction of 2021 Ideal ONE to home users. In order to mitigate the ongoing supply chain risks, we will continue to work with our supply chain partners to find solutions. We are full of confidence in the growth prospects of ideal cars. We will continue to increase investment in research and development to promote the parallel development of extended-range electric vehicles and pure electric vehicles. Increase the construction of sales and service network to prepare for the continuous growth of our business.

Analysis of revenue and profit in the third quarter of 2021

The total revenue in the third quarter of 2021 was RMB 7.78 billion, an increase of 209.7% compared with RMB 2.51 billion in the third quarter of 2020 and an increase of 54.3% compared with RMB 5.04 billion in the second quarter.

According to the financial report, the revenue of ideal cars comes from automobile sales and services, with vehicle sales revenue of 7.39 billion yuan, accounting for 95% of the total revenue, increasing by 199.7% compared with 2.46 billion yuan in the third quarter of 2020 and 50.6% compared with 4.90 billion yuan in the second quarter of 2021. The substantial increase in vehicle sales benefited from strong vehicle delivery. In the third quarter, a total of 25,116 Li ONE vehicles were delivered, up 190.0% year-on-year.

Other sales and service revenue was 390 million yuan, an increase of 745.1% compared with 0.46 yuan in the third quarter of 2020 and an increase of 187.0% from the previous quarter. The substantial increase in services is due to the sales of new energy vehicle points and the increase in cumulative sales of vehicles, which makes the sales of charging piles, accessories and services increase.

The net loss in the third quarter of 2021 was RMB 21.5 million, which was 79.9% lower than RMB 106.9 million in the third quarter of 2020 and 90.9% lower than RMB 235.5 million in the second quarter. Ideal's loss decreased by 90% month-on-month in such a difficult environment for stocks in the third quarter, which can be said to exceed everyone's expectations. However, Ideal has only one model at present, and its R&D and marketing expenses are relatively low, which is one of the reasons why Ideal achieved brilliant financial results in the third quarter.

In 2021, under the dual influence of chip shortage and epidemic situation, Ideal Automobile has still made good achievements. With the gradual maturity of the industrial chain, its revenue will continue to maintain rapid growth.

Ideal cars are delivered in the third quarter

NIO Inc., ideal and ideal in the third quarter all disclosed the delivery data in the third quarter, and each achieved good results. In the third quarter of 2021, the delivery volume of ideal ONE was 25,116 vehicles, up 190.0% year-on-year. In the second quarter of 2021, it was 17,575 vehicles, and in the first quarter of 2021, it was 12,579 vehicles, which performed very well. XPeng Inc. delivered 25,700 vehicles, up 199.2% year-on-year. NIO Inc. delivered 24,400 new cars, up 100% year-on-year.

In October 2021, Ideal Car delivered 7,649 Ideal ONE, an increase of 107.2% compared with October 2020. As of October 31, 2021, the company has 162 retail centers covering 86 cities, and operates 223 after-sales maintenance centers and ideal automobile authorization centers in 165 cities.

Ideal Auto's gross profit margin reached a new high in the third quarter

Gross profit margin is an important operating index of listed companies, which can reflect the competitiveness and profit potential of companies' products. The gross profit of ideal automobile in the third quarter was RMB 1.81 billion, up 264.8% from RMB 496.8 million in the same period last year and 90.2% from RMB 952.8 million in the second quarter. The gross profit margin in the third quarter was 23.3%, compared with 19.8% in the same period last year and 18.9% in the second quarter of 2021. Compared with Youshang, Ideal Automobile has the highest gross profit margin, among which NIO Inc. 's gross profit margin was 20.3% in the third quarter and Tucki's gross profit margin was 14.4%, but XPeng Inc. increased by 11 percentage points compared with the same period last year.

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For new energy vehicles, automobile sales are the company's main source of income, and the gross profit margin of the whole vehicle is also one of our main indicators.Tesla Motors, the leader of new energy, achieved an astonishing 30% gross profit margin in the third quarter, while NIO Inc. Motors' gross profit margin in the third quarter dropped from 20.3% in the second quarter to 18%. XPeng Inc. 's automobile gross profit margin was 13.6% in the third quarter of 2021 and 3.2% in the same period of 2020, an increase of 10 percentage points, which can be said to be very eye-catching.

The gross profit margin of ideal cars reached 21.1% in the third quarter of 2021, 19.8% in the same period last year and 18.7% in the second quarter of 2021. It is expected that with the increase of ideal automobile production scale and the maturity of industrial chain, gross profit will further increase.

Financial Analysis of Ideal Automobile in the Third Quarter

Ideal Auto's total revenue in the third quarter was 7.78 billion yuan, up 209.7% year-on-year. The operating expenses of Ideal Automobile in the third quarter were 1.91 billion yuan, up 182.2% year-on-year. Operating expenses are mainly divided into research and development expenses and marketing expenses. R&D expenses were 888.5 million yuan, up 165.6% year-on-year and 36.0% quarter-on-quarter from 653.4 million yuan in the second quarter. The increase in R & D was mainly due to the increase in employee compensation due to the increase in R & D personnel and the increase in R & D related expenses of the Company for new models. Marketing expenses were 1.02 billion yuan, up 198.5% year-on-year and 22.3% quarter-on-quarter from 835.3 million yuan in the second quarter. This was mainly due to the increase in marketing and promotional activities and the increase in employee compensation and rental expenses as the Company expanded its distribution network.

In terms of R&D investment, the ideal car is far lower than that of Tucki and NIO Inc.. The R&D expenditure of ideal automobile is only 888.5 million yuan, and the R&D expenditure of XPeng Inc. in the third quarter is 1.264 billion yuan, up 99% year-on-year and 46.4% quarter-on-quarter. NIO Inc. 's R&D expenditure in the third quarter was 1.193 billion yuan, up 101.9% year-on-year and 35% quarter-on-quarter.

In terms of marketing expenses, the ideal automobile marketing expenses in the third quarter were 1.02 billion yuan, an increase of 22.3% from the previous month; XPeng Inc. invested 1.538 billion yuan, up 49.3% from the previous month; The marketing expenses of ideal cars in the third quarter reached 1.825 billion yuan, an increase of 22% from the previous month.From the financial report, this is mainly due to the increase in marketing, promotion and advertising expenses supporting automobile sales. It can be said that the three companies have invested a lot of money in marketing.

The loss of Ideal Automobile in the third quarter was greatly reduced, and the operating loss in the third quarter was 97.8 million yuan, which was 45.7% lower than 180 million yuan in the third quarter of 2020 and 81.8% lower than 535.9 million yuan in the second quarter of 2021. The net loss was RMB 21.5 million, a decrease of 79.9% compared with RMB 106.9 million in the third quarter of 2020.

Because the ideal car is listed in Hong Kong stocks, there is abundant cash flow at present. Operating cash flow in the third quarter was 2.17 billion, up 54.1% from 1.41 billion in the second quarter. The free cash flow in the third quarter was RMB 1.16 billion, up 55.4% year-on-year.

Ideal carOutlook for the fourth quarter

In October, the ideal car delivered 7,649 ideal ONE, and it is expected that the ideal monthly delivery will exceed 1W in the next two months. In the fourth quarter of 2021, the ideal car is expected to deliver 30,000 to 32,000 vehicles, an increase of 107.4% to 121.2% compared with the fourth quarter of 2020. Revenue ranged from 8.82 billion yuan to 9.41 billion yuan, up 112.7% to 126.9% compared with the fourth quarter of 2020 and 13%-21% from the previous quarter.

XPeng Inc. expects to deliver 34,500-36,500 sets of guidelines in the fourth quarter, with revenue of RMB 7.1 billion to RMB 7.5 billion, up 36%-44% from the previous month. NIO Inc. expects the delivery volume in the fourth quarter to be between 23,500 and 25,500 vehicles, and the total revenue will be between RMB 9.38 billion and RMB 10.11 billion, with a month-on-month increase of about-4. 4%-3.1%.

According to the guidance of the fourth quarter, XPeng Inc. will still make great strides in the fourth quarter, NIO Inc. and ideals are still affected by chips, and the growth rate will decline in the fourth quarter, especially NIO Inc. Motors, whose products were upgraded in October and only 3,600 units were delivered. It is reported that,The first batch of pre-production vehicles of ET7 officially went offline, and NIO Inc. will also pass the most difficult time. Chip shortage is temporary. I believe that with the expansion of supply chain and the upgrading of industrial chain, tertiary companies will continue to maintain rapid growth.

Ideal new car plan

In 2022, the ideal will launch the extended program X platform, and the full-size SUV based on this platform will also be unveiled next year. The new car still adopts the extended-range technology. Although consumers are more receptive to the old technology of hybrid oil and electricity, considering the rapid development of the times, it may only be a matter of time before the extended-range technology is eliminated. The ideal pure electric vehicle will be launched in 2023.

By 2023, Ideal will launch five brand-new models. Specifically, it is ideal to launch a full-size extended-range SUV next year, followed by two pure electric SUVs in 2023, and two extended-range SUVs on a new platform.

The Beijing manufacturing base of ideal cars officially started construction and is planned to be put into operation in 2023. This base will become an important luxury electric vehicle manufacturing base for ideal cars.

Comments

There are still many bright spots in the third quarter financial report of Ideal Automobile, among which 25,116 new cars were delivered, surpassing NIO Inc. and basically equal to XPeng Inc.. The gross profit margin reached 23.3%, and the gross profit margin of the whole vehicle reached 21.1%. They are far more than NIO Inc. and Tucki. In the other three quarters, the ideal other income also performed brilliantly, with an income of 390 million, an increase of 184.7% from the previous month. The proportion of automobile sales revenue decreased from 98.2% in the same period last year to 95% in the third quarter. Considering that there is only one ideal model at present, it is reasonable that the research and development expenses and marketing expenses are the lowest among the three. On the whole, the ideal in the third quarter still handed over a good financial report.

Ideal cars were favored by capital in the third quarter. At present, the top five holding institutions are BlackRock, Baiji Investment, Pioneer Pilot, FMR LLC and State Street Bank in turn. In the third quarter, BlackRock increased its holdings by 3,137,300 shares, ranking first in the increase in holdings; Gao Yan added 1.08 million ideal cars; Qiaoshui Fund increased its holdings by 959,700 shares, with an increase of about 132.6%. Goldman Sachs reduced its holdings by 1,329,400 shares in the third quarter, with a reduction rate of about 18%.

Although the ideal car has achieved good results at present,At present, Tucki has officially started delivery in October. The first lidar P5 is also expected to start climbing in the first quarter of 2022. In addition, in 2022, Tucki also plans to launch a new SUV modelThe new car will be positioned as a medium and large SUV, which will be benchmarked with NIO Inc. ES8 and ideal ONE.The first batch of pre-production vehicles of NIO Inc. ET7 officially went offline and is expected to be delivered in the first quarter of 2022. NIO Inc. will launch a low-end sub-brand, which will exist independently and is expected to sell for between 150,000 yuan and 250,000 yuan. The sub-brand model is expected to be released in the first half of next year. On the other hand, it is ideal that only one large-scale SUV with extended range will be released in 2022, and the low-end market is basically zero. In the highly competitive market, it seems that the limited stamina is insufficient.

$Tesla Motors(TSLA)$$Byd Company Limited(002594)$$NIO Inc.(NIO)$$Li Auto(LI)$$XPeng Inc.(XPEV)$

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Modify on 2021-11-30 01:15

Disclaimer: The above content represents only the personal views of the poster and does not constitute investment advice on this platform.

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