ZHONGTAI SECURITIES·2025-08-04 08:59Investment Rating - The investment rating for BYD is "Buy" (maintained) [3][24]. Core Views - The report emphasizes that BYD is investing 5 billion yuan to build the world's first all-terrain professional racetrack, which is expected to enhance the brand's high-end image and product capabilities [4][8]. - The sales data for July shows strong performance for high-end brands, with Tengshi selling 11,375 units, Fangchengbao 14,180 units, and Yangwang 339 units, indicating a positive growth trend [4]. - The report highlights the technical capabilities of BYD's high-end models, showcasing their performance in various driving conditions during test drives at the racetrack [5][9]. Financial Forecasts - Revenue projections for BYD are as follows: 602,315 million yuan in 2023, 777,102 million yuan in 2024, and expected to reach 905,668 million yuan in 2025, with a year-on-year growth rate of 42%, 29%, and 17% respectively [3]. - The net profit attributable to the parent company is forecasted to be 30,041 million yuan in 2023, 40,254 million yuan in 2024, and 52,233 million yuan in 2025, reflecting growth rates of 81%, 34%, and 30% respectively [3]. - Earnings per share are projected to increase from 3.29 yuan in 2023 to 5.73 yuan in 2025 [3]. Product Performance - The Tengshi N9 demonstrated superior maneuverability and stability during the slalom test, with a minimum turning radius of only 4.65 meters, outperforming many competitors [5][9]. - The Tengshi Z9 GT showcased impressive braking performance, achieving a maximum braking distance of 32.6 meters from 100 km/h, indicating strong safety features [9][16]. - The Yangwang U8 exhibited advanced off-road capabilities, including a unique water-sealing design that allows it to operate effectively in deep water conditions [13][16]. Strategic Insights - The report discusses the importance of high-end branding for BYD, drawing parallels with Toyota's Lexus strategy, emphasizing the need for high performance, comfort, and competitive pricing to succeed in the premium market [5][9]. - The ongoing development of new models like the Titanium 7 and N8L is expected to further enhance the sales of BYD's high-end brands [4][5].