BYD(SZ:002594) CSC SECURITIES (HK) LTD·2024-10-09 08:30Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 367 RMB / 345 HKD [4]. Core Insights - The company achieved record sales in September, selling 419,000 vehicles, representing a month-over-month increase of 12.4% and a year-over-year increase of 45.9% [4]. - The company is expected to capture more market share in the fuel vehicle segment due to its strong competitive position in the sub-200,000 RMB market and advancements in hybrid technology [4][5]. - The company’s net profit projections for 2024, 2025, and 2026 are 39.2 billion RMB, 48.6 billion RMB, and 56.7 billion RMB, respectively, with year-over-year growth rates of 30.6%, 23.8%, and 16.7% [4][5][6]. Sales Performance - Cumulative sales from January to September reached 2.748 million vehicles, a year-over-year increase of 32.1%, with plug-in hybrid vehicles being the main growth driver [5]. - The company’s sales in the 50,000 to 200,000 RMB price segment are particularly strong, with models like Song PLUS and Qin L DM-i achieving monthly sales of over 43,000 units [5]. Financial Projections - The company’s earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 13.5 RMB, 16.7 RMB, and 19.5 RMB, respectively [4][6]. - The price-to-earnings (P/E) ratios for A-shares in 2024, 2025, and 2026 are expected to be 22.7, 18.3, and 15.7, while for H-shares, they are projected to be 19, 15.4, and 13.2 [4][6]. Market Dynamics - The company benefits from enhanced subsidy policies, which have significantly stimulated sales, particularly in September [4]. - The company is accelerating its globalization efforts, with plans for increased channel development and overseas base construction, expecting to double exports in 2024 [4].