EBSCN·2024-10-31 12:31Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of BYD, with target prices set at 336.99 CNY for A-shares and 324.56 HKD for H-shares [4][5]. Core Insights - The performance in Q3 2024 met expectations, with revenue for the first three quarters increasing by 18.9% year-on-year to 502.25 billion CNY, and net profit rising by 18.1% to 25.24 billion CNY [1]. - The company is expected to solidify its leading position through iterative and new models, with significant growth in both domestic and export markets [1]. - BYD's new energy vehicle sales increased by 32.2% year-on-year to 2.736 million units in the first nine months of 2024, driven by strong demand in the domestic market [1]. Summary by Sections Revenue Performance - Q3 2024 revenue reached 201.12 billion CNY, up 24.0% year-on-year and 14.2% quarter-on-quarter, with a gross margin of 21.9% [1]. - The automotive business saw a quarter-on-quarter improvement in gross margin, with per vehicle profit increasing by 8.9% to 9,378.4 CNY [1]. Market Positioning - The DM5.0 technology has helped BYD maintain a strong market share in the under 200,000 CNY segment, with DM5.0 models accounting for nearly 35% of total sales in Q3 2024 [1]. - The Tengshi Z9 model is positioned to reshape BYD's presence in the high-end vehicle market, with over 1,100 units delivered in the first week of its launch [1]. Export Growth - BYD's export sales surged by 104.7% year-on-year to 298,000 units in the first nine months of 2024, with significant growth in key overseas markets [1]. - The company has a production capacity plan of 900,000 units across Asia-Pacific, Middle East, and Latin America, supported by its own roll-on/roll-off ships to enhance delivery efficiency [1]. Financial Projections - The report maintains net profit forecasts for 2024-2026 at 39.39 billion CNY, 47.28 billion CNY, and 53.92 billion CNY respectively [1].