Xinda Securities·2024-11-05 08:37Investment Rating - The investment rating for BYD is "Buy" [1] Core Views - BYD reported a steady growth in Q3 2024, achieving revenue of 201.12 billion yuan, a year-on-year increase of 24.0%, and a net profit attributable to shareholders of 11.61 billion yuan, up 11.5% year-on-year [1] - In October, BYD's sales exceeded 503,000 units, setting a record for monthly sales among Chinese automakers, with passenger vehicle sales reaching 500,000 units, a year-on-year increase of 66.2% [1] - The company is focusing on high-end models and has launched the Dynasty Ocean DM5.0, contributing to stable growth in sales [1] - BYD's global expansion is accelerating, with a significant increase in overseas sales, reaching 31,000 units in October and a cumulative total of over 300,000 units from January to October [1] Financial Summary - For Q3 2024, BYD's gross margin was 21.89%, a decrease of 0.23 percentage points year-on-year but an increase of 3.2 percentage points quarter-on-quarter [1] - The company achieved a net profit margin of 6.0% in Q3, up 0.7 percentage points from the previous quarter [1] - The projected net profit for BYD from 2024 to 2026 is expected to be 39.6 billion yuan, 51.2 billion yuan, and 62.4 billion yuan, respectively, with corresponding P/E ratios of 23x, 17x, and 14x [2]