Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 486.4, indicating a potential upside of 32.3% from the current price of HKD 365.6 [4][6]. Core Insights - The launch of the "Tian Shen Zhi Yan" advanced driving system aims to democratize intelligent driving technology, making it accessible to a broader consumer base [2]. - The company is projected to achieve record sales of 4.25 million new energy passenger vehicles in 2024, representing a year-on-year increase of 41% [3]. - The company’s market share in the new energy vehicle sector is expected to stabilize at 35% in 2025, despite increased competition from hybrid models [3][4]. Financial Summary - Revenue is forecasted to grow from RMB 602.3 billion in 2023 to RMB 1,018.3 billion in 2025, reflecting a compound annual growth rate (CAGR) of 34.2% [5][7]. - Net profit is expected to increase from RMB 30.0 billion in 2023 to RMB 53.7 billion in 2025, with a net profit margin projected to remain around 5.3% [5][7]. - Earnings per share (EPS) is anticipated to rise from HKD 10.3 in 2023 to HKD 18.4 in 2025, indicating a strong growth trajectory [5][7].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 486.4, indicating a potential upside of 32.3% from the current price of HKD 365.6 [4][6]. Core Insights - The launch of the "Tian Shen Zhi Yan" advanced driving system aims to democratize intelligent driving technology, making it accessible to a broader consumer base [2]. - The company is projected to achieve record sales of 4.25 million new energy passenger vehicles in 2024, representing a year-on-year increase of 41% [3]. - The company’s market share in the new energy vehicle sector is expected to stabilize at 35% in 2025, despite increased competition from hybrid models [3]. Financial Summary - Revenue is forecasted to grow from RMB 602.3 billion in 2023 to RMB 1,216.6 billion by 2026, reflecting a compound annual growth rate (CAGR) of approximately 34.2% [5][7]. - Net profit is expected to increase from RMB 30.0 billion in 2023 to RMB 65.4 billion in 2026, with a net profit margin projected to improve gradually [5][7]. - Earnings per share (EPS) is anticipated to rise from HKD 10.3 in 2023 to HKD 22.5 in 2026, indicating strong profitability growth [5][7]. Sales and Market Position - The company’s high-end brands, including Tengshi and Fangchengbao, are expected to contribute significantly to overall sales, with a projected total of 188,000 units sold in 2024 [3]. - The overall new energy vehicle market in China is expected to reach 10.9 million units in 2024, with the company maintaining a leading position despite a slight decline in market share [3]. Strategic Developments - The introduction of the "Tian Shen Zhi Yan" system across various models is expected to enhance the company's competitive edge and drive industry-wide adoption of intelligent driving technologies [4]. - The company plans to launch a new generation of pure electric platforms and related technologies in 2025, which is anticipated to further boost profitability and market presence [4].

Investment Rating - The report recommends a focus on BYD's intelligent driving strategy, indicating a positive outlook for the company's future performance in the smart driving sector [43]. Core Insights - BYD's strategy emphasizes "intelligent driving equality," aiming to promote smart driving systems across all vehicle price ranges, including models priced below 100,000, between 100,000 and 200,000, and above 200,000 [7][41]. - The penetration rates for BYD's high-speed NOA (Navigate on Autopilot) and urban NOA are currently low at 1.0% and 0.5% respectively, suggesting significant growth potential as the company expands its offerings [7][22]. - BYD's intelligent driving system, named "Tianshen Eye," includes various versions with different capabilities, indicating a comprehensive approach to smart driving technology [12][19]. Summary by Sections Intelligent Driving Strategy - BYD's intelligent driving strategy was unveiled during the 2024 Dream Day, focusing on scaling the adoption of smart driving systems across its entire vehicle lineup [7]. - The company has historically developed its driving assistance systems, including Dipilot and Tianshen Eye, with plans to enhance its capabilities through AI computing power [10][12]. Industry Overview - The intelligent driving market in China is expected to grow significantly, with smart vehicle sales projected to reach 2,040 million units by 2026, representing a penetration rate of 81.2% [35]. - The report highlights the competitive landscape, noting that leading companies like Li Auto and NIO currently dominate the high-end NOA market, which poses challenges for BYD [22][41]. Company Recommendations - The report suggests monitoring BYD (1211) and Geely (175) for their intelligent driving strategies, as well as companies involved in L3 level autonomous driving such as XPeng (9868) and Li Auto (2015) [43]. - It also recommends keeping an eye on component suppliers like BYD Electronics (285) and SUTENG (2498) for their roles in the intelligent driving ecosystem [43].

Investment Rating - The investment rating for BYD Company Limited (1211 HK) is "Buy" with a target price of 379.22 HKD, indicating a potential upside of 14.8% from the current price of 330.20 HKD [3]. Core Insights - The report highlights the official launch of BYD's advanced driving system "Tianshen Zhi Yan" on February 10, 2024, which will be equipped across all models, starting with 21 models. This system includes three versions, enhancing AI capabilities through the integration of the "Xuanji Architecture" with DeepSeek [2][3]. - The introduction of the "Tianshen Zhi Yan" system allows BYD to penetrate the 70,000 RMB market segment, making advanced driving features accessible in lower-priced models, which is a significant shift in the industry [2]. - The report anticipates that the aggressive pricing strategies of BYD and competitors will accelerate the adoption of intelligent driving technologies, potentially increasing the penetration rate of new energy vehicles in China to 60% by 2025 [2]. Summary by Sections Event Overview - BYD officially launched its high-level driving system "Tianshen Zhi Yan," which will be available in all models, with the first batch of 21 models set to hit the market. The system is designed to enhance user experience and AI capabilities [2]. Product Details - "Tianshen Zhi Yan" consists of three versions: - Version A (DiPilot 600) with three LiDARs for nationwide navigation without maps, primarily for the Yangwang brand - Version B (DiPilot 300) with a single LiDAR for similar navigation, used in brands like Tengshi and BYD - Version C (DiPilot 100) for high-level driving and valet parking, featured in entry-level models like Qin PLUS DM-i and Song PLUS DM-i [2]. Market Implications - The report suggests that BYD's strategy to offer advanced driving systems in lower-priced vehicles will challenge competitors and reshape the market dynamics, leading to a potential shift of fuel vehicle users to new energy vehicles [2].

Investment Rating - The report maintains a **Buy** rating for the company with a 12-month target price of **HKD 340.0**, representing a **32% upside** from the current price of HKD 258.2 [3][4][5] Core Views - The company achieved a record-breaking **4.25 million** new energy vehicle (NEV) sales in 2024, exceeding its sales target [2][4] - The company's NEV sales grew **41.1% YoY** in 2024, with plug-in hybrid sales increasing **72.8% YoY** and pure electric vehicle sales growing **12.1% YoY** [2] - Overseas NEV sales reached **417,000 units** in 2024, a **71.9% YoY increase**, setting a new record for Chinese automakers in overseas markets [2] - The company is expected to maintain its market share and profitability due to its strong technological and cost advantages [4][5] Financial Performance - Revenue is projected to grow from **RMB 424.1 billion** in 2022 to **RMB 1,106.8 billion** in 2026, with a CAGR of **27.1%** [1] - Net profit is expected to increase from **RMB 16.6 billion** in 2022 to **RMB 63.7 billion** in 2026, with a CAGR of **40.1%** [1] - Gross margin is forecasted to improve from **17%** in 2022 to **21%** in 2026 [1] - ROE is expected to rise from **14%** in 2022 to **22%** in 2026 [1] Technological Advancements - The company has made significant progress in intelligent driving, with its high-end intelligent driving assistance system, "Tianshen Eye," being rolled out in December 2024 [5] - The company is adopting a dual-track approach for intelligent driving, combining in-house R&D with collaborations with partners like Momenta, Horizon, and Huawei [5] - The company plans to launch new models, including the high-end MPV "Xia" and upgraded versions of its flagship models "Han L" and "Tang L," equipped with the latest DM technology and blade batteries [9] Market Position and Valuation - The company's total market capitalization is **HKD 803.2 billion**, with an H-share market capitalization of **HKD 281.3 billion** [3] - The company's P/E ratio is expected to decline from **42.1x** in 2022 to **11.0x** in 2026, reflecting strong earnings growth [1] - The company's P/B ratio is projected to decrease from **5.8x** in 2022 to **2.5x** in 2026 [1] Future Outlook - The company is expected to continue its strong growth trajectory, driven by its technological leadership, cost advantages, and expanding product portfolio [4][5] - The company's focus on intelligent driving and new model launches is likely to further strengthen its competitive position in the NEV market [5][9]

Investment Rating - Buy rating with a target price of HKD 328.3, representing a 29.44% upside from the current price [1] Core Views - Q3 2024 results met expectations with revenue of RMB 502.2 billion (+18.9% YoY) and net profit of RMB 25.2 billion (+18.1% YoY) [1] - Q3 gross margin improved to 21.9%, up 3.2 percentage points QoQ, driven by economies of scale in NEV sales [1] - November NEV sales reached 504,000 units (+67% YoY, +1% MoM), with DM5.0 models driving strong PHEV sales of 306,000 units (+133% YoY) [1] - Full-year 2024 NEV sales expected to exceed 4.1 million units, supported by strong DM5.0 model sales and government subsidies [1] - 2025 is expected to be a breakthrough year for BEV models with new platform launches, further boosting profitability [1] Financial Performance Revenue & Profitability - Q3 revenue reached RMB 201.1 billion (+14.2% QoQ), with net profit of RMB 11.6 billion (+28% QoQ) [1] - Auto business revenue in Q3 was RMB 157.58 billion (+18% QoQ), with gross margin improving to 26% (+4 ppts QoQ) [1] - 2024-2026 revenue forecast at RMB 780.1/953.3/1,130.6 billion, with net profit of RMB 37.5/45.8/55.9 billion [2][4] - Gross margin expected to improve from 20.2% in 2023 to 22.6% by 2026 [4] Vehicle Sales & Profitability - YTD November 2024 sales reached 3.74 million units (+40% YoY), with premium brands (Denza, Fang Cheng Bao, Yangwang) contributing 163,000 units (+39.4% YoY) [1] - Q3 vehicle ASP increased to RMB 139,500 (+RMB 3,000 QoQ) due to higher-priced DM5.0 models [1] - Q3 vehicle profit per unit rose to RMB 9,400 (+RMB 8,000 QoQ), expected to remain stable in Q4 [1] International Expansion - November overseas sales reached 31,000 units, with YTD exports at 360,000 units (+74% YoY) [1] Valuation & Forecast - 2025 target valuation of HKD 888.1 billion based on 20x PE for auto business and 15x PE for electronics [1] - 2024-2026 EPS forecast at RMB 12.87/15.74/19.20, with P/E ratios of 18.3x/15.0x/12.3x [2][4] - Dividend yield expected to increase from 1% in 2023 to 2% by 2026 [2]

Investment Rating - The report maintains a "Buy" rating for BYD with a target price of 340.0 HKD, indicating a potential upside of 21% from the current price of 281.4 HKD [5][3]. Core Insights - BYD's revenue for the first three quarters of 2024 reached 502.25 billion RMB, representing a year-on-year growth of 18.9%. The net profit attributable to shareholders was 25.24 billion RMB, up 18.1% year-on-year, while the non-GAAP net profit was 23.19 billion RMB, reflecting a 19.9% increase [2][3]. - In Q3 2024, BYD's revenue was 201.12 billion RMB, showing a year-on-year growth of 24.0% and a quarter-on-quarter increase of 14.2%. The net profit for the same period was 11.61 billion RMB, up 11.5% year-on-year and 28.1% quarter-on-quarter [2][3]. - The sales volume in Q3 2024 reached 1.135 million vehicles, a significant increase of 37.7% year-on-year and 15.0% quarter-on-quarter. The average revenue per vehicle was 139,000 RMB, slightly up from the previous quarter [2][3]. Summary by Sections Financial Performance - For FY2024, BYD is projected to achieve sales revenue of 746.27 billion RMB, with a growth rate of 24%. The net profit is expected to reach 39.4 billion RMB, reflecting a growth rate of 31% [4]. - The overall gross margin for Q3 2024 was 21.9%, a decrease of 0.2 percentage points year-on-year but an increase of 3.2 percentage points quarter-on-quarter. The automotive business gross margin was 25.6%, showing a similar trend [2][4]. Product Development - The launch of the DM5.0 model has significantly boosted sales, with a higher proportion of sales coming from this model. The report anticipates continued strong sales growth driven by new models and government incentives for vehicle upgrades [3][2]. Market Position - The report emphasizes BYD's strong technological and cost advantages, which are expected to help maintain market share and steady performance amid increasing industry competition [3][5].

Investment Rating - Buy rating maintained with a target price of HKD 379.22, implying a 28.5% upside from the current price of HKD 295.00 [1][2][6] Core Views - 3Q24 gross margin exceeded expectations at 21.9%, up 3.2 percentage points QoQ, driven by improved auto business margin due to lower lithium carbonate prices, economies of scale, and DMI 5.0 model ramp-up [1] - 3Q24 net profit rose 11.5% YoY and 28.1% QoQ to RMB 11.6 billion, with revenue up 24.0% YoY and 14.2% QoQ to RMB 201.1 billion [1] - Operating expenses surged QoQ, with sales/management/R&D expenses up 27.8%/20.1%/52.0% respectively, hitting record highs due to increased spending on premium models and smart features [1] - 4Q24 sales expected to rise to 1.3-1.5 million units (vs 1.13 million in 3Q24) on seasonal strength and DMI 5.0 model ramp-up, with further margin improvement potential from economies of scale [2] - Premium models and exports yet to contribute meaningfully, with Denza Z9 GT starting deliveries in September and Fangchengbao's Leopard 8 not yet launched [2] - Overseas sales impacted by EU tariffs in 3Q24, but new market entries (Vietnam, Pakistan, Tunisia) and upcoming overseas plant production expected to boost export volumes [2] Financial Forecasts - 2024-26E net profit forecasts raised by 14%/19.4%/23.3% to reflect higher sales volume and margin improvement from premium models and exports [2] - 2024E revenue forecast at RMB 764.8 billion (+27.0% YoY), with net profit of RMB 41.1 billion (+36.9% YoY) [3] - 2025E revenue forecast at RMB 905.4 billion (+18.4% YoY), with net profit of RMB 52.4 billion (+27.4% YoY) [3] - 2026E revenue forecast at RMB 1,056.9 billion (+16.7% YoY), with net profit of RMB 64.5 billion (+23.1% YoY) [3] - Gross margin expected to improve from 20.5% in 2024E to 21.4% in 2026E, with net margin rising from 5.4% to 6.1% over the same period [8] Industry Context - BYD maintains strong position in sub-RMB 200k passenger vehicle market with vertical supply chain and high-margin advantages [2] - Increasing focus on premium models (Denza, Fangchengbao) and smart features through partnerships (e.g., Huawei) [2] - Overseas expansion ongoing with new market entries and local production, though near-term headwinds from EU tariffs [2]

Investment Rating - The report maintains a "Buy" rating for BYD Company Limited (1211 HK) with a target price of HKD 379.22, indicating a potential upside of 28.5% from the current closing price of HKD 295.00 [1][7]. Core Insights - BYD's automotive gross margin exceeded expectations in Q3 2024, driven by improved margins in the automotive business and a decline in lithium carbonate prices. The company's net profit for Q3 2024 reached RMB 11.6 billion, reflecting a year-on-year increase of 11.5% and a quarter-on-quarter increase of 28.1% [1][2]. - The report highlights that the increase in operating expenses (selling, administrative, and R&D) in Q3 2024 was significant, with respective increases of 27.8%, 20.1%, and 52.0%, attributed to higher spending on premium models and smart technology [1][2]. - The report anticipates continued sales growth in Q4 2024, projecting quarterly sales to rise to 1.3 to 1.5 million units, supported by the ongoing rollout of the DMI 5.0 model [2]. Financial Summary - Revenue for BYD is projected to grow from RMB 602.3 billion in 2023 to RMB 764.8 billion in 2024, representing a year-on-year growth of 27.0% [3][8]. - Net profit is expected to increase from RMB 30.0 billion in 2023 to RMB 41.1 billion in 2024, with a significant year-on-year growth of 36.9% [3][8]. - The report also notes an upward revision of profit forecasts for 2024-2026 by 14%, 19.4%, and 23.3% respectively, reflecting higher sales expectations and contributions from premium models and overseas markets [2][3].

Investment Rating - The report maintains a BUY rating for the company, BYD, with a revised target price of HK$350, up from HK$262, reflecting improved investor sentiment [2][5]. Core Insights - The company's 3Q24 gross margin of 21.9% exceeded expectations, providing confidence for sales forecasts for 4Q24 and FY25, despite higher SG&A and R&D expenses [2]. - The sales volume forecast for FY24 has been increased by 4% to 4.02 million units, with FY25 projected to rise 13% YoY to 4.55 million units [2]. - The company prioritizes market share and global expansion over rapid earnings growth, which may complicate forecasts for SG&A and R&D expenses [2]. Financial Performance - 3Q24 net profit was RMB11.6 billion, 15% lower than previous forecasts, attributed to unexpected forex losses despite higher government grants and VAT refunds [2]. - Revenue growth from FY21 to FY26 shows a significant increase, with FY24E revenue projected at RMB725.7 billion, up from RMB602.3 billion in FY23 [9]. - The gross profit margin is expected to slightly decrease from 20.6% in FY24E to 20.3% in FY25E, while net profit is projected to rise from RMB36.0 billion in FY24E to RMB47.5 billion in FY25E [7][8]. Valuation Metrics - The company’s P/E ratio is projected to decrease from 21.9x in FY24E to 16.6x in FY25E, indicating a more attractive valuation as earnings grow [14]. - The return on equity (ROE) is expected to remain strong, projected at 25.5% for FY25E, down slightly from 24.0% in FY24E [13]. Market Position - BYD continues to have the best resources to withstand the ongoing price war in the automotive sector, which supports its competitive position [2]. - The company’s aggressive overseas expansion strategy is expected to drive revenue growth, with selling expenses projected to rise in line with revenue growth [2].