Tai Ping Yang·2024-09-02 05:03Investment Rating - The report maintains a "Buy" rating for BYD, with a target price based on the last closing price of 234.85 [1][6]. Core Views - BYD's revenue for the first half of 2024 reached 301.13 billion yuan, a year-on-year increase of 15.76%, with a net profit of 13.63 billion yuan, up 24.44% year-on-year [3]. - The company sold 1.613 million new energy vehicles in the first half of the year, representing a growth of 28.5% year-on-year, with significant contributions from models like the Qin L and Song family [3][4]. - BYD's R&D investment increased by 41.6% year-on-year to 20.2 billion yuan, focusing on technological innovation to drive the development of popular models [4]. Financial Summary - The company's gross margin for the first half of 2024 was 20.01%, an increase of 1.7 percentage points year-on-year, while the net profit margin was 4.69%, up 0.3 percentage points year-on-year [3]. - The report forecasts BYD's revenue for 2024 to be 770.4 billion yuan, with a year-on-year growth rate of 27.91%, and net profit expected to reach 37.95 billion yuan, reflecting a growth rate of 31.61% [7][8]. - The company is projected to achieve a diluted earnings per share of 13.04 yuan in 2024, with a price-to-earnings ratio of 18 [7][8]. Market Position and Strategy - BYD's export volume surged by 173.8% year-on-year, with overseas revenue reaching 89.9 billion yuan, a 39.65% increase [4]. - The company is expanding its local production capabilities, having signed agreements for a passenger vehicle factory in Hungary, which will enhance its global electric vehicle transition [6][4]. - The introduction of the fifth-generation DM technology is expected to significantly boost sales of the Qin and Song series, potentially doubling their historical sales peaks [6][4].