Sou Hu Cai Jing·2025-08-30 03:25Core Viewpoint - BYD's mid-year report shows impressive earnings of 15.5 billion, with a daily average profit of 85 million, and revenue surpassing 371.3 billion, historically exceeding Tesla. However, the stock price fluctuates around 114 yuan, raising questions about whether this is due to market manipulation or genuine growth concerns [1]. Financial Performance - Revenue for the first half reached 371.3 billion, a year-on-year increase of 23%, with the automotive segment contributing 302.5 billion. Overseas revenue surged by 130% to 135.4 billion, indicating strong performance [3]. - In Q2, revenue growth slowed to 14%, a decline of 22 percentage points from the previous quarter, as domestic price wars began to impact profits [3]. - Overall gross margin stood at 18.01%, down 2 percentage points year-on-year, while automotive gross margin fell to 20.35%, indicating that increased sales are not translating into higher profits [4]. Cash Flow and Profitability - The company reported strong operating cash flow of 31.8 billion, doubling year-on-year, with cash reserves reaching 156.1 billion and a debt ratio reduced to 71%, showcasing robust financial health [4]. - However, net profit growth was only 13.8%, a significant drop from 24.4% in the same period last year, highlighting the challenge of increasing revenue without corresponding profit growth [4]. Research and Development - BYD invested 30.9 billion in R&D, a 53% increase year-on-year, exceeding net profit by a factor of two. The company holds over 39,000 patent licenses, with significant advancements in fast-charging batteries and intelligent driving systems [5]. Market Dynamics - Three key contradictions are shaping the future outlook: 1. Overseas sales are strong with 550,000 units sold, and unit profits are 30% higher than domestic sales, but domestic price wars are leading to profit declines [6]. 2. Technological advancements are strong, yet operating cost growth (35.88%) has outpaced revenue growth (32.49%), raising questions about cost control [6]. 3. Retail investor enthusiasm contrasts with institutional divergence, as retail investors focus on immediate performance while institutions bet on future growth driven by overseas expansion and policy benefits [6]. Trading Strategy - For current holders, it is advised to reduce positions by 20% in the 114-116 yuan range and consider re-entering at 110-112 yuan. If the price drops below 108 yuan, a significant reduction in holdings is recommended [7]. - For observers, a stable breakout above 118 yuan with high trading volume could warrant a 10% position, while a pullback to 110 yuan could allow for a small entry. A decisive drop below 108 yuan should trigger a stop-loss [7].