Soochow Securities·2026-02-03 00:24Investment Rating - The investment rating for BYD is "Buy" (maintained) [1] Core Views - In January 2026, BYD's sales decreased both year-on-year and month-on-month, continuing its push towards high-end products and exports [8] - The company sold 210,000 vehicles in January, representing a year-on-year decline of 30% and a month-on-month decline of 50% [8] - The forecast for 2026 sales is 5.12 million vehicles, an 11% increase year-on-year, with exports expected to reach 1.5 to 1.6 million vehicles, a growth of 44% to 53% [8] - The report highlights an increase in the share of pure electric vehicles and a continued focus on high-end and export markets [8] - BYD's battery installations in January increased by 30% year-on-year, with significant growth in external battery supply and energy storage business [8] - The profit forecast for 2025-2027 has been adjusted due to increased industry competition, with net profits expected to be 35 billion, 45 billion, and 56 billion yuan respectively [8] Financial Projections - Total revenue projections for BYD are as follows: 602.3 billion yuan in 2023, 777.1 billion yuan in 2024, 839.4 billion yuan in 2025, 887.1 billion yuan in 2026, and 990.6 billion yuan in 2027 [1] - The projected net profit for 2023 is 30.0 billion yuan, increasing to 40.3 billion yuan in 2024, but expected to decline to 35.0 billion yuan in 2025 before rising to 45.0 billion yuan in 2026 and 56.3 billion yuan in 2027 [1] - The earnings per share (EPS) are projected to be 3.29 yuan in 2023, 4.42 yuan in 2024, 3.84 yuan in 2025, 4.94 yuan in 2026, and 6.18 yuan in 2027 [1] - The price-to-earnings (P/E) ratio is expected to be 26.72 in 2023, decreasing to 14.25 by 2027 [1]