BYD(002594) 长江证券·2024-09-09 04:03Investment Rating - The report maintains a "Buy" rating for BYD (002594 SZ) [7] Core Views - BYD's 2024 H1 financial performance met expectations with revenue of 3011 3 billion yuan (+15 8% YoY) and net profit of 136 3 billion yuan (+24 4% YoY) [2][5] - The company is entering a new product and technology cycle with DM5 0 and e 4 0 platforms driving product upgrades and market expansion [2][7] - Overseas and high-end market strategies are accelerating with export volume reaching 10 6 million units in Q2 2024 (+196 6% YoY) and high-end models (Fangchengbao Yangwang Denza) contributing 4 5% of sales [6][7] - BYD's market share in the new energy vehicle sector reached 36 1% in Q2 2024 (+4 6pct QoQ) with total sales of 98 7 million units (+40 2% YoY) [5] Financial Performance - Q2 2024 revenue was 1761 8 billion yuan (+25 9% YoY +41 0% QoQ) with net profit of 90 6 billion yuan (+32 8% YoY +98 4% QoQ) [5] - Gross margin remained stable at 18 7% YoY but declined 3 2pct QoQ due to price adjustments and raw material cost increases [6] - Operating cash flow in Q2 2024 was 3 95 billion yuan significantly lower than the previous quarter's 10 2 billion yuan due to increased inventory and payments [6] Product and Technology - The DM5 0 hybrid platform is expected to drive sales growth with capacity constraints currently limiting its full potential [6] - New high-end models including Z9GT Z9L N9 Bao 3 and Bao 8 are scheduled for launch in H2 2024 [6] - The company's R&D expenses accounted for 7% of revenue in 2023 with continued investment in new technologies [12] Market Expansion - BYD's overseas strategy is gaining momentum with exports accounting for 10 7% of sales in Q2 2024 [6] - The company is expanding its product matrix and distribution channels in international markets particularly in Europe [9] Future Outlook - The report forecasts BYD's net profit to reach 385 billion yuan in 2024 511 billion yuan in 2025 and 650 billion yuan in 2026 [7] - The company's PE ratio is expected to be 18 8X in 2024 14 2X in 2025 and 11 2X in 2026 [7]