Guoyuan Securities·2024-06-24 12:30Investment Rating - The report gives a "Buy" rating for the company, BYD, based on its strong market position and growth potential in the new energy vehicle sector [2][4]. Core Insights - BYD is a leading player in the domestic new energy vehicle market, with a comprehensive supply chain and production capacity of 4.75 million vehicles domestically and 1.1 million vehicles overseas [2][25]. - The company has achieved a full price range layout and is investing heavily in research and development, which supports its brand enhancement and market competitiveness [2][10]. - BYD is expected to experience a peak in overseas production by 2024, with factories in Uzbekistan, Thailand, and Brazil set to commence operations, facilitating its global expansion [2][25]. Summary by Sections 1. Company Overview - Founded in 1995, BYD has evolved from a battery manufacturer to a comprehensive new energy vehicle producer, establishing a full industry chain from raw materials to vehicle sales [2][10]. - The company has a significant technological edge in battery technology and has been a pioneer in the electric vehicle sector [2][10]. 2. Cost and Technology Strategy - BYD has integrated its supply chain to maintain pricing power in the market segment below 200,000 yuan, while also developing advanced technologies such as the Blade Battery and the e-platform 3.0EVO [2][10][17]. - The company has established a strong technology pool that includes various disruptive technologies, enhancing its product offerings across different market segments [2][10]. 3. Global Expansion - BYD is actively expanding its production capacity overseas, with a focus on regions like Central Asia, Southeast Asia, and South America, supported by new factories and a fleet of large automobile transport ships [2][25]. - The company has already begun production in its joint venture factory in Uzbekistan and plans to launch additional factories in Thailand and Brazil by the second half of 2024 [2][25]. 4. Financial Projections - The report forecasts significant growth in net profit for BYD, estimating net profits of 39.48 billion yuan, 54.83 billion yuan, and 68.42 billion yuan for 2024, 2025, and 2026 respectively [2][3]. - The projected earnings per share for the same period are 13.56 yuan, 18.83 yuan, and 23.50 yuan, with corresponding price-to-earnings ratios indicating a favorable valuation [2][3]. 5. Sales and Distribution Network - BYD has expanded its distribution network to approximately 4,099 outlets, with an average sales volume of 176.4 vehicles per store in the first quarter of 2024, leading the industry in sales efficiency [2][28]. - The company employs a multi-channel strategy, combining traditional dealership models with direct sales to enhance customer reach and service quality [2][28].