BYD reported revenue of RMB 117.1 billion in the third quarter, up 115.6 percent year-on-year and up 39.8 percent from the second quarter.

BYD officially announced its third-quarter earnings today, after releasing its earnings preview 10 days ago.

The Chinese new energy vehicle (NEV) giant reported revenue of RMB 117.1 billion ($16.1 billion) in the third quarter, up 115.6 percent year-on-year and up 39.8 percent from the second quarter, according to the earnings report.

The company reported a net profit of RMB 9.3 billion in the first three quarters of 2022, up 281.13 percent year-on-year.

BYD had a gross margin of 18.96 percent in the third quarter, up from 14.39 percent in the second quarter and 13.33 percent in the same period last year.

On October 17, BYD announced an earnings preview showing it expects a third-quarter net profit of RMB 5.5 billion to RMB 5.9 billion.

After deducting non-recurring gains and losses, BYD's net profit in the third quarter was RMB 5.3 billion, up 923.2 percent from RMB 518 million in the same period last year.

China's new energy vehicle industry continued to accelerate on the upside in the third quarter, and BYD's earnings elasticity continued to be shown, said Guosen Securities analyst Tang Xuxia's team in a research note on October 23.

The company's scale effect has strengthened quarter by quarter, effectively easing earnings pressure from rising upstream raw material prices, the team said.

The team expects BYD to sell 1.78 million, 3.2 million and 4 million vehicles from 2022 to 2024, with average sales revenue of RMB 160,000, 170,000 and 170,000 per vehicle, respectively.

Separately, Soochow Securities said in an October 18 research note that BYD delivered more post-price hike models in the third quarter, so earnings from its auto business improved significantly in the quarter.

The team expects BYD to earn around RMB 10,000 per vehicle on average in the third quarter, and that performance still has room for a small improvement in the fourth quarter.

For the full year 2022, BYD's average earnings per vehicle are expected to be about RMB 7,000, up more than two times year-on-year, the team said.