In just one year, the market value of Cyrus (601127.sh) has soared by nearly 120 billion. Currently, the total market value of Cyrus has reached 160 billion.
What is this concept?
In terms of market value alone, Cyrus has surpassed SAIC, second only to BYD and Great Wall Motors , becoming the third largest car company in the A-share market!
What is the logic behind the rise of Cyrus?
In the author’s opinion:
On the one hand, it is certainly related to the general environment of the A-share “bull market”;
On the other hand, it is because of the “rocket” surge in sales and performance of Cyrus.
In fact, there is a more important point: that is, the company Cyrus is becoming more and more "different". In its cooperation with Huawei, Cyrus's voice has gradually increased, and it has gradually taken off the label of "Huawei OEM" and is transforming into an independent leading new energy vehicle brand.
Let’s first briefly introduce the sales and performance of Cyrus this year. Feel the dramatic changes in the company's fundamentals through intuitive data.
In the first three quarters of this year, the cumulative sales of Cyrus new energy vehicles were 316,713 units, a year-on-year increase of 364.23%, mainly from the full range of Wenjie under the Sailis brand. From January to September, a total of 289,455 vehicles of the Wenjie series were delivered. Accounting for more than 90% of sales of new energy vehicles of Cyrus.
Once the sales of automobile products increase, not only will the performance of the manufacturer improve, but the gross profit will also increase. Because cars require significant upfront investment in the design, manufacturing, and marketing stages, their manufacturing costs are directly related to sales volume. There is a famous "Wright's Law" in the automobile industry, which means that whenever the cumulative production of a certain car doubles, its cost price will drop by 15%.
We can see that sales of Cyrus have "exploded", performance has soared, and profitability has also improved.
According to the company’s performance forecast, the net profit in the third quarter will reach 1.875 billion to 2.475 billion yuan, which means that the company not only turned a profit in the third quarter, but also made more money in one quarter than in the entire first half of the year! You must know that in the first half of this year, Cyrus's total profit was only 1.625 billion yuan.
From a gross profit perspective, the company has been improving every quarter since the second quarter of last year.
From the second quarter of 2023 to the second quarter of this year, Cyrus’s gross profits were 4.17%, 7.58%, 13.54%, 21.51%, and 27.47% respectively.
"Wright's Law" is fully reflected in Salis, which can be said to be a textbook case.
After talking about the intuitive, let's talk about the macro:
That is, Cyrus is taking off the "Huawei foundry" label. As a result, the market has revalued the company.
The cooperation between Cyrus and Huawei began in 2021. With the empowerment of Huawei, Cyrus has achieved profitability.
However, the market has long criticized it. To put it bluntly, Cyrus just changed the name of to Dongfeng Xiaokang and just manufactured it for Huawei.
Fortunately, with development to this day, Cyrus has proven itself through hard work. Since the beginning of this year, with the introduction of mergers and acquisitions and investment prospects, Thalys has become more and more influential in the cooperation between the two parties, and the boundaries have become increasingly clear.
Huawei has long stated that it will not build cars.In July this year, Cyrus announced that it planned to spend 2.5 billion yuan to acquire the "Wenjie" trademark and appearance patents from Huawei.
Now, "Ask the World" completely belongs to Cyrus.
"Connected Travel" analysis pointed out that the brand assets belong to itself and the boundaries of the smart car selection business are clear, which will help improve Cyrus's position in the process of cooperation with Huawei. The two are becoming more and more closely tied partners. In a sense, Cyrus has taken off the hat of Huawei's foundry.
According to China Business News, some securities firms believe that "after Cyrus purchased the Wenjie trademark and styling intellectual property rights, Huawei may take a smaller portion of the commission." Cyrus will gain from future cooperation. Benefit more.
Thalys’s “ambition” does not stop at asking questions.
On the evening of July 28, Cyrus issued another indicative announcement about the planning of foreign investment, announcing its intention to invest in Shenzhen Yinwang Intelligent Technology Co., Ltd. (hereinafter referred to as "Yinwang Intelligent"), a subsidiary of Huawei.
According to 36Kr, Huawei’s automotive business was once Huawei’s only loss-making business. However, with Cyrus’s investment in shares, Huawei’s automotive business is expected to be profitable!
Yu Chengdong, Huawei’s managing director and chairman of Smart Car Solutions BU, once said that Huawei Automobile BU will lose about 6 billion yuan in 2023, and in the first quarter of this year, the business has achieved profitability. It only took three months for Huawei Automobile to turn a loss into a profit.
Huawei Automotive Bu’s revenue has increased significantly, mainly due to the large customer Cyrus.
It is precisely because of the hot sales of Qianjie that Cyrus's production capacity has been fully expanded. It can be said that whether Huawei Automobile Bu can achieve full-year profits depends on whether Cyrus's business can continue to increase its volume.
It can be said that it is no longer Cyrus that "relies" on Huawei, but that Huawei's automotive business and Cyrus are mutually dependent and partners.
The latest news is that Wenjie m9 has been the sales champion of models above 500,000 yuan in the Chinese luxury market for 6 consecutive months.
From the dying Dongfeng Xiaokang to the first-tier luxury car brand in China. Thalys lasted only four years. In just one year, the market value of Cyrus (601127.sh) has soared by nearly 120 billion. Currently, the total market value of Cyrus has reached 160 billion. What is this concept? In terms of market value alone, Cyrus has surpassed SAIC, second only to BYD and Great Wall Motors , becoming the third largest car company in the A-share market! What is the logic behind the rise of Cyrus? In the author’s opinion: On the one hand, it is certainly related to the general environment of the A-share “bull market”; On the other hand, it is because of the “rocket” surge in sales and performance of Cyrus. In fact, there is a more important point: that is, the company Cyrus is becoming more and more "different". In its cooperation with Huawei, Cyrus's voice has gradually increased, and it has gradually taken off the label of "Huawei OEM" and is transforming into an independent leading new energy vehicle brand. Let’s first briefly introduce the sales and performance of Cyrus this year. Feel the dramatic changes in the company's fundamentals through intuitive data. In the first three quarters of this year, the cumulative sales of Cyrus new energy vehicles were 316,713 units, a year-on-year increase of 364.23%, mainly from the full range of Wenjie under the Sailis brand. From January to September, a total of 289,455 vehicles of the Wenjie series were delivered. Accounting for more than 90% of sales of new energy vehicles of Cyrus. Once the sales of automobile products increase, not only will the performance of the manufacturer improve, but the gross profit will also increase. Because cars require significant upfront investment in the design, manufacturing, and marketing stages, their manufacturing costs are directly related to sales volume. There is a famous "Wright's Law" in the automobile industry, which means that whenever the cumulative production of a certain car doubles, its cost price will drop by 15%. We can see that sales of Cyrus have "exploded", performance has soared, and profitability has also improved. According to the company’s performance forecast, the net profit in the third quarter will reach 1.875 billion to 2.475 billion yuan, which means that the company not only turned a profit in the third quarter, but also made more money in one quarter than in the entire first half of the year! You must know that in the first half of this year, Cyrus's total profit was only 1.625 billion yuan. From a gross profit perspective, the company has been improving every quarter since the second quarter of last year. From the second quarter of 2023 to the second quarter of this year, Cyrus’s gross profits were 4.17%, 7.58%, 13.54%, 21.51%, and 27.47% respectively. "Wright's Law" is fully reflected in Salis, which can be said to be a textbook case. After talking about the intuitive, let's talk about the macro: That is, Cyrus is taking off the "Huawei foundry" label. As a result, the market has revalued the company. The cooperation between Cyrus and Huawei began in 2021. With the empowerment of Huawei, Cyrus has achieved profitability. However, the market has long criticized it. To put it bluntly, Cyrus just changed the name of to Dongfeng Xiaokang and just manufactured it for Huawei. Fortunately, with development to this day, Cyrus has proven itself through hard work. Since the beginning of this year, with the introduction of mergers and acquisitions and investment prospects, Thalys has become more and more influential in the cooperation between the two parties, and the boundaries have become increasingly clear. Huawei has long stated that it will not build cars.In July this year, Cyrus announced that it planned to spend 2.5 billion yuan to acquire the "Wenjie" trademark and appearance patents from Huawei. Now, "Ask the World" completely belongs to Cyrus. "Connected Travel" analysis pointed out that the brand assets belong to itself and the boundaries of the smart car selection business are clear, which will help improve Cyrus's position in the process of cooperation with Huawei. The two are becoming more and more closely tied partners. In a sense, Cyrus has taken off the hat of Huawei's foundry. According to China Business News, some securities firms believe that "after Cyrus purchased the Wenjie trademark and styling intellectual property rights, Huawei may take a smaller portion of the commission." Cyrus will gain from future cooperation. Benefit more. Thalys’s “ambition” does not stop at asking questions. On the evening of July 28, Cyrus issued another indicative announcement about the planning of foreign investment, announcing its intention to invest in Shenzhen Yinwang Intelligent Technology Co., Ltd. (hereinafter referred to as "Yinwang Intelligent"), a subsidiary of Huawei. According to 36Kr, Huawei’s automotive business was once Huawei’s only loss-making business. However, with Cyrus’s investment in shares, Huawei’s automotive business is expected to be profitable! Yu Chengdong, Huawei’s managing director and chairman of Smart Car Solutions BU, once said that Huawei Automobile BU will lose about 6 billion yuan in 2023, and in the first quarter of this year, the business has achieved profitability. It only took three months for Huawei Automobile to turn a loss into a profit. Huawei Automotive Bu’s revenue has increased significantly, mainly due to the large customer Cyrus. It is precisely because of the hot sales of Qianjie that Cyrus's production capacity has been fully expanded. It can be said that whether Huawei Automobile Bu can achieve full-year profits depends on whether Cyrus's business can continue to increase its volume. It can be said that it is no longer Cyrus that "relies" on Huawei, but that Huawei's automotive business and Cyrus are mutually dependent and partners. The latest news is that Wenjie m9 has been the sales champion of models above 500,000 yuan in the Chinese luxury market for 6 consecutive months. From the dying Dongfeng Xiaokang to the first-tier luxury car brand in China. Thalys lasted only four years. Isn’t this a business miracle? personal opinions, for reference only
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