BYD(01211) 第一上海证券·2024-05-31 03:01Investment Rating - The report assigns a "Buy" rating for BYD (1211) with a target price of 276 HKD, indicating a potential upside of 33.6% from the current price of 206.6 HKD [2][4][6]. Core Insights - BYD's Q1 2024 performance met market expectations, with revenue reaching 124.9 billion RMB, a year-on-year increase of 27.4% [2][4]. - The gross profit margin slightly increased to 21.9%, reflecting a 0.7 percentage point year-on-year growth, despite the impact of a new price war in the automotive industry [2][4]. - The company launched several lower-priced "Honor Edition" models to rapidly expand market share, which negatively affected profitability but helped maintain overall vehicle gross margins [2][4]. - BYD's total vehicle sales reached 30.2 million units in Q1, a 46% year-on-year increase, with plug-in hybrids and pure electric vehicles also showing significant growth [2][4]. Financial Performance Summary - Revenue for 2024 is forecasted to be 723.8 billion RMB, with a projected net profit of 34.7 billion RMB, reflecting a year-on-year growth of 15.4% [6]. - The report highlights a decrease in average vehicle price, which is expected to stabilize as higher-priced models are introduced, leading to improved per-vehicle profit margins in subsequent quarters [2][4]. - The company anticipates achieving historical high sales of 3.6 million units for the year, driven by the launch of new models and increased international sales [2][4]. Market Position and Strategy - BYD's strategy includes enhancing its high-end brand presence and increasing the proportion of international sales, which is expected to contribute positively to net profit margins [2][4]. - The introduction of the DM5.0 platform is expected to optimize vehicle efficiency, with a fuel consumption reduction to 2.9L per 100 km and a maximum driving range of 2100 km [2][4]. - The report emphasizes the importance of the upcoming model launches in maintaining competitive advantage and driving future growth [2][4].