BYD(SZ:002594) Changjiang Securities·2025-03-19 08:26Investment Rating - The investment rating for BYD is "Buy" and is maintained [6]. Core Views - BYD announced its 2025 employee stock ownership plan, which includes a revenue growth target of over 10% per year, reflecting the company's confidence in its growth prospects [5][6]. - The employee stock ownership plan will involve up to 25,000 participants, with a total of 4.1 billion shares available for purchase at a price of 1 yuan per share, totaling a maximum investment of 4.1 billion yuan [3][5]. - The company is expected to see significant profit growth, with projected net profits of 40.3 billion, 57 billion, and 69.2 billion yuan for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 28.7X, 20.3X, and 16.7X [5]. Summary by Sections Employee Stock Ownership Plan - The plan aims to bind core employees and includes a three-phase unlocking schedule for shares, with performance targets set for revenue growth [5][6]. Market Strategy and Product Development - BYD is focusing on smart driving technology and expanding its high-end market presence, with new models expected to drive sales and profitability [5]. - The company is enhancing its overseas market strategy and product matrix, which is anticipated to improve profitability through scale effects [5]. Financial Projections - The total revenue for BYD is projected to reach 602.3 billion yuan in 2023, increasing to 1,210.9 billion yuan by 2026, with a consistent gross margin around 21% [13]. - The net profit attributable to shareholders is expected to grow from 30.04 billion yuan in 2023 to 69.19 billion yuan in 2026, indicating a strong upward trend in profitability [13].