2024-03-27 16:00Investment Rating - The report maintains an "OUTPERFORM" rating for BYD [3][11]. Core Views - BYD's fourth-quarter performance generally meets expectations, with a significant increase in NEV market share and ambitious overseas sales targets set for the next three years [8][9]. - The company is actively implementing its overseas strategy, aiming to double its sales from 240,000 vehicles last year to 500,000 this year, and reaching 1 million vehicles by 2025 [9]. - Strong collaborations with global tech giants are enhancing BYD's technological capabilities in the field of intelligence, particularly in smart driving systems [10]. Financial Summary - In 2023, BYD reported revenue of Rmb602.32 billion, a 42% year-on-year increase, with Q4 revenue of Rmb180.04 billion, up 15% year-on-year [8]. - Total car sales for 2023 reached 3.024 million vehicles, a 62% increase year-on-year, with NEV market share rising by 4.8 percentage points to 31.9% [8][9]. - The gross margin for the automotive business improved to 23.0%, up 2.6 percentage points year-on-year, with net profit attributable to shareholders reaching Rmb30.04 billion, an 81% increase year-on-year [8][11]. - Earnings per share (EPS) estimates for 2024-2026 are Rmb11.44, Rmb15.22, and Rmb19.59, respectively, with a target price set at Rmb251.68 based on a 22x price-to-earnings ratio for 2024 [11].