Dongguan Securities·2025-09-02 08:58Investment Rating - The investment rating for BYD (002594) is "Buy" (maintained) [2][6]. Core Insights - The report highlights that BYD's total revenue for the first half of 2025 reached 371.28 billion yuan, a year-on-year increase of 23.3%, while the net profit attributable to shareholders was 15.51 billion yuan, up 13.8% year-on-year. However, the net profit for Q2 saw a decline of 29.9% year-on-year due to ongoing price wars in the domestic electric vehicle market [6]. - The report emphasizes the steady progress of BYD's overseas business, with a significant increase in export sales of new energy vehicles, which reached 545,000 units from January to July, marking a 133.5% year-on-year growth. The overseas revenue accounted for 36.5% of total revenue, with a gross margin of 19.8%, higher than the domestic market [6]. - The report also notes that BYD's R&D investment for the first half of 2025 was 30.9 billion yuan, a 53% increase year-on-year, supporting innovations in various advanced technologies [6]. Summary by Sections Financial Performance - In H1 2025, BYD's total revenue was 371.28 billion yuan, with a year-on-year growth of 23.3%. The net profit attributable to shareholders was 15.51 billion yuan, up 13.8% year-on-year. Q2 revenue was 200.92 billion yuan, a 14.0% year-on-year increase, but net profit fell by 29.9% year-on-year [6]. - The gross margin for Q2 2025 was 16.3%, down 2.4 percentage points year-on-year and 3.8 percentage points quarter-on-quarter [6]. Overseas Business - BYD's overseas sales of new energy vehicles reached 545,000 units from January to July, a 133.5% increase year-on-year. The overseas revenue for H1 2025 was 135.36 billion yuan, a 50.5% increase year-on-year [6]. R&D Investment - The company invested 30.9 billion yuan in R&D in H1 2025, which is nearly double its net profit, indicating a strong commitment to innovation in the automotive sector [6]. Future Profit Projections - The projected net profits for BYD from 2025 to 2027 are 47.64 billion yuan, 61.17 billion yuan, and 73.38 billion yuan, respectively, with corresponding PE ratios of 20.99, 16.35, and 13.63 [6][8].