2024-05-07 08:02Investment Rating - The report maintains a "Buy" rating for BYD Company with a target price of 300 HKD, indicating a potential upside of 33% from the current price of 226 HKD as of May 3, 2024 [15][14]. Core Insights - BYD's April sales of new energy vehicles reached 313,000 units, representing a year-on-year growth of 49% and a month-on-month increase of 3.6%. Exports accounted for 41,000 units, showing a remarkable year-on-year growth of 208% [2][13]. - The company is expected to benefit significantly from the new vehicle replacement subsidy policy introduced by the Chinese government, which is projected to stimulate demand for approximately one million vehicles [2]. - BYD's first-quarter revenue for 2024 was 124.9 billion RMB, a year-on-year increase of 4%, while net profit rose by 11% to 4.6 billion RMB [13][14]. Financial Performance Summary - Revenue projections for BYD show a strong growth trajectory, with expected revenues of 780.6 billion RMB in 2024, up from 602.3 billion RMB in 2023, reflecting a growth rate of 30% [3][17]. - The net profit is forecasted to reach 35.4 billion RMB in 2024, an 18% increase from 2023 [3][17]. - Gross margin is expected to stabilize around 20% from 2024 onwards, while net margin is projected to remain at 5% [3][17]. Sales and Market Dynamics - BYD's plug-in hybrid vehicle sales in April were 178,000 units, a year-on-year increase of 69%, while pure electric vehicle sales were 134,000 units, up 29% year-on-year [2][13]. - The company is set to launch several new models and the fifth-generation DM-i hybrid technology in the second quarter, which is anticipated to further boost sales [2]. Shareholder Structure - The major shareholder, Wang Chuanfu, holds 17.7% of the company, while other shareholders account for 82.3% [16].