Tianfeng Securities·2025-08-22 06:24Industry Investment Rating - The industry investment rating is "Outperform the Market" [1] Core Insights - The report emphasizes the integration of racing culture and high-end branding for BYD, showcasing how the newly built all-terrain racetrack in Zhengzhou serves as a platform for technology application and user engagement [2][4][21] - The report draws parallels between BYD's strategy and historical examples from global automotive brands like Mercedes and Ferrari, highlighting the importance of racing success in enhancing brand perception and driving sales [3][22][24] Summary by Sections Section 1: BYD Racetrack - The BYD Zhengzhou all-terrain racetrack has been completed and opened, representing a significant investment of 5 billion yuan, featuring diverse driving experiences such as drifting and off-road challenges [11] - The racetrack serves as a testing ground for key technologies like Yisifang and Yunian, facilitating the connection between technology and users [2][12] Section 2: Racing Culture and Brand Evolution - The racetrack is positioned as a tool for brand elevation, with a focus on user engagement through various activities that blend technology validation and consumer experience [23] - Historical examples from F1 and other racing events illustrate how success on the racetrack can translate into brand prestige and sales growth for automotive companies [24][26][30] Section 3: High-End Product Strategy - BYD is set to launch several high-end models in the latter half of 2025, including the Fangchengbao Titanium 7, Yangwang U8L, and Tengshi N8L, targeting different segments of the luxury SUV market [41][53] - The Fangchengbao Titanium 7 is designed for both urban commuting and off-road capabilities, while the Yangwang U8L emphasizes luxury and advanced driving features [47][50] - The Tengshi N8L showcases a modern design and strong performance metrics, appealing to younger consumers [53][55]