BYD(01211) 交银国际证券·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for BYD Company Limited (1211 HK) with a target price of HKD 306.48, indicating a potential upside of 51.1% from the current price of HKD 202.80 [1][3][10]. Core Views - The company's performance in 2023 met market expectations, with a net profit growth of 81% year-on-year to RMB 30 billion, and total revenue increased by 42% to RMB 602.3 billion [1][6]. - BYD's vertical supply chain advantage and pricing power are expected to continue leading the industry, while accelerated exports and high-end product offerings are anticipated to enhance profitability [3][5]. - The report predicts a 24.9% increase in sales volume for 2024, reaching 3.77 million units, with a market share increase expected [2][3]. Financial Summary - In 2023, BYD's gross profit reached RMB 121.76 billion, with a gross margin of 20.2%, up from 17.0% in 2022 [6]. - The company’s net profit margin improved to 5.0% in 2023, up from 3.9% in 2022, reflecting operational efficiency [6]. - The report projects revenues of RMB 764.81 billion for 2024, with a net profit forecast of RMB 36.06 billion, representing a year-on-year growth of 20% [5][12]. Sales and Market Strategy - The report highlights that BYD's strategy of launching multiple models in the budget segment (under RMB 200,000) is aimed at capturing market share through cost reduction and price competition [2][3]. - The introduction of high-end models is expected to contribute positively to profitability, with high-end brands projected to account for approximately 8% of total sales, an increase of 4 percentage points year-on-year [2][3]. Stock Performance - The stock has shown a year-to-date decline of 5.41%, with a 52-week high of HKD 275.60 and a low of HKD 171.70 [4][10]. - The average daily trading volume is reported at 20.63 million shares, indicating active market participation [4]. Valuation Metrics - The report provides a projected P/E ratio of 22x for 2024, reflecting a slight adjustment from previous estimates [3][5]. - The estimated book value per share is expected to rise from RMB 61.61 in 2023 to RMB 78.46 in 2024, indicating strong growth in shareholder equity [5][12].