Ping An Securities·2024-11-03 11:38Investment Rating - The investment rating for BYD is "Recommended (Maintain)" [1][5] Core Views - The company achieved a monthly sales record of 503,000 units in October, with year-on-year growth of 66.5% and month-on-month growth of 19.8%. Cumulative sales from January to October reached 3.251 million units, representing a year-on-year increase of 36.5% [4] - The strong sales performance is attributed to the new product cycle initiated by the fifth-generation hybrid system and the stimulus from the vehicle trade-in policy. In October, hybrid vehicle sales accounted for over 60% of total sales, with 310,000 units sold [4][5] - However, there is pressure to meet the overseas sales target of 500,000 units, as cumulative overseas sales from January to October reached only 329,000 units [4] - The company is entering a new product cycle with its high-end brand, and the launch of the Tengshi Z9 GT is expected to enhance sales. The company is also focusing on smart technology development, with plans to introduce self-developed intelligent driving solutions by mid-2025 [5] Financial Summary - The company's revenue is projected to grow from 602.315 billion yuan in 2023 to 955.153 billion yuan in 2026, with a compound annual growth rate (CAGR) of 16.3% [6][11] - Net profit is expected to increase from 30.041 billion yuan in 2023 to 57.127 billion yuan in 2026, reflecting a CAGR of 21.0% [6][11] - The gross margin is projected to improve slightly from 20.2% in 2023 to 20.9% in 2026, while the net margin is expected to rise from 5.0% to 5.7% over the same period [12] - Earnings per share (EPS) is forecasted to grow from 10.33 yuan in 2023 to 18.85 yuan in 2026 [12]