ZHONGTAI SECURITIES·2024-09-14 06:03Investment Rating - The report maintains a "Buy" rating for BYD [1]. Core Views - The report focuses on BYD's high-end strategy, emphasizing the importance of high-end attributes, successful product design, and market timing for achieving high-end brand status [5][14]. - The anticipated launch of the Tengshi N9 in Q4 2024 is expected to catalyze sales growth and enhance brand perception [7][9]. - The report predicts significant revenue growth for BYD, estimating revenues of 803.92 billion yuan in 2024, 956.01 billion yuan in 2025, and 1,137.01 billion yuan in 2026, with corresponding net profits of 37.54 billion yuan, 47.63 billion yuan, and 54.41 billion yuan respectively [2][6][9]. Summary by Sections Company Overview - BYD holds the largest market share in the domestic passenger car market, with a focus on high-end, export, and intelligent vehicle segments [5]. High-End Market Analysis - The report discusses the current high-end vehicle market dynamics, noting that traditional high-end brands are using price reductions to maintain market share, while the penetration of new energy vehicles (NEVs) varies significantly across price segments [6][12]. High-End Strategy - BYD's high-end strategy is characterized by clear brand positioning, with Tengshi focusing on volume and Yangwang enhancing brand prestige [7][16]. - The report identifies a gap in market perception regarding BYD's high-end capabilities, attributing it to a lack of sufficient high-end product offerings rather than a deficiency in capability [7][19]. Financial Projections - The report provides detailed financial forecasts, projecting a revenue increase of 34% in 2024, followed by 19% growth in the subsequent years, alongside a net profit growth of 25% and 27% in 2024 and 2025 respectively [2][9][24]. Competitive Analysis - The report compares BYD's strategy to that of Toyota's Lexus, highlighting the importance of high-end attributes and competitive pricing in establishing a successful high-end brand [26][39]. Conclusion - The report concludes that BYD's high-end strategy, supported by technological advancements and a focus on both profitability and volume, positions the company well for future growth in the high-end vehicle market [24][25].