GOLDEN SUN SECURITIES·2024-10-31 02:53Investment Rating - The report maintains a "Buy" rating for BYD [3][5]. Core Views - BYD achieved a revenue of 502.25 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 18.94%, with a net profit of 25.24 billion yuan, up 18.1% year-on-year [1]. - In Q3 2024, BYD's revenue reached 201.1 billion yuan, with year-on-year and quarter-on-quarter growth of 24% and 14%, respectively. The net profit for the quarter was 11.6 billion yuan, reflecting an 11.5% year-on-year and 28.1% quarter-on-quarter increase [1]. - The sales volume in Q3 2024 was 1.131 million vehicles, marking a year-on-year increase of 37.3% and a quarter-on-quarter increase of 14.7% [1]. - The company is benefiting from the popularity of its DM5.0 model, which is driving continuous improvement in profitability [1]. Financial Performance - The gross margin for Q3 2024 was 21.9%, showing a year-on-year decline of 0.23 percentage points but a quarter-on-quarter improvement of 3.2 percentage points [2]. - The total operating expenses ratio was 14.4%, with an increase of 1.59 percentage points year-on-year and 2.65 percentage points quarter-on-quarter [2]. - The report forecasts net profits for 2024-2026 to be 38.52 billion, 47.62 billion, and 57.75 billion yuan, respectively, with corresponding P/E ratios of 23, 19, and 15 times [3]. Market Position and Strategy - The domestic market remains strong, supported by policies promoting vehicle upgrades, while the company is also advancing its global expansion and enhancing its brand power [2]. - BYD is focusing on self-developed and collaborative advancements in intelligent driving technology, with models like the Fangcheng Leopard 8 featuring Huawei's ADS 3.0 [2]. Stock Information - As of October 30, 2024, BYD's closing price was 305.55 yuan, with a total market capitalization of approximately 888.93 billion yuan [5]. - The report indicates a free float of 77.7% of the total shares [5]. Financial Projections - The projected revenue for 2024 is 765.14 billion yuan, with a year-on-year growth rate of 27% [4][11]. - The report outlines a steady growth trajectory for revenue and net profit over the next few years, indicating a robust financial outlook for BYD [4][11].