Core Viewpoint - The report by China Galaxy Securities highlights BYD's luxury brand Tengshi, emphasizing its strong market performance and technological advancements, with a buy rating and a target price of 151.82 yuan [1]. Group 1: Brand Positioning and Market Performance - Tengshi, established in 2010, is positioned as a mid-to-high-end brand, with the D9 model achieving significant sales success in the domestic market [2]. - The D9 has led the Chinese MPV market for two consecutive years and is set to expand globally, entering markets such as Singapore, Thailand, Indonesia, and Malaysia in 2024 [2]. - By 2025, Tengshi is expected to achieve sales of 230,000 units, with the D9 contributing 125,000 units [4]. Group 2: Technological Advancements - Tengshi benefits from BYD's high R&D investment, enhancing its technological capabilities, including advanced safety features and AI-driven smart cockpit systems [3]. - The DM5.0 system has improved fuel efficiency by 10%, and the new super e-platform offers rapid charging capabilities [3]. Group 3: Financial Projections - Revenue projections for BYD from 2025 to 2027 are 994.03 billion yuan, 1,160.77 billion yuan, and 1,307.58 billion yuan, with net profits of 52.54 billion yuan, 63.22 billion yuan, and 75.40 billion yuan respectively [4]. - The estimated EPS for the same period is 5.76 yuan, 6.93 yuan, and 8.27 yuan, with a reasonable per-share value range of 134.75 yuan to 151.82 yuan [4].

Core Insights - The event themed "Leading Together, Witnessing the Extraordinary" showcased Tengshi Automotive's products and technologies, attracting numerous financial analysts for an in-depth experience [1] Product Features - Tengshi N9 attracted attention with its design and luxury features, including a flagship visual effect created by its front design and dual-star headlights [1] - The vehicle's interior comfort was highlighted, particularly the cloud-seeking seats and the 11L smart cooling and heating refrigerator, which received positive feedback from analysts [1] - The N9's three-fold seat design allows for one-button switching between multiple modes, enhancing its versatility for various scenarios such as camping [3] Performance Demonstration - The event was held at a professional testing facility featuring various terrains to demonstrate vehicle performance, with the N9 showcasing a small turning radius of 4.65 meters, emphasizing its agility as a large SUV [4] - The N9 is equipped with a cloud-seeking dual-chamber air suspension that can anticipate road conditions and adjust damping to improve ride comfort, receiving high praise for its vibration filtering and stability [6] - The N9 achieved a world record in the fishhook test at a speed of 180 km/h, certified by China Automotive Research, demonstrating its handling and stability [10] Safety Features - Safety was a key focus, with the N9 demonstrating high precision in automatic emergency braking (AEB) tests, capable of stopping from speeds of 120 km/h on highways and 110 km/h at night, with a low false trigger rate [8] - A case was shared where a Tengshi Z9GT maintained stable control and safely stopped after a tire blowout, showcasing the effectiveness of the technology [8] - The N9 is claimed to maintain stability at speeds of 180 km/h during a tire blowout and in challenging conditions like large curvature bends and icy surfaces [8] Technological Support - The event highlighted the technological support provided by BYD Group, including advanced technologies like the Easy Drift and Lingyuan intelligent drone, allowing analysts to directly experience the brand's technological capabilities [6]

Sales Performance - In April 2025, BYD sold 380,089 vehicles, with passenger car sales reaching 372,615 units, representing a year-on-year growth of 19.4% [2] - The BYD brand's Dynasty and Ocean series accounted for 347,053 units, while Tengshi cars sold 15,388 units, Yangwang cars 135 units, and Fangchengbao cars 10,039 units [2] - Overseas sales of passenger cars and pickups reached 78,705 units in April, marking a significant year-on-year increase of 91.9% [2] Product Development - The Tengshi N9, a flagship SUV, was launched on March 21, 2025, with prices ranging from 389,800 to 449,800 CNY [2] - The Tengshi N9 features advanced technologies such as the Easy Three-way hybrid system and a 2.0T super hybrid engine, setting a new benchmark for luxury SUVs priced around 500,000 CNY [2] Technological Advancements - The Easy Three-way technology incorporates four core technologies: independent drive by three motors, dual-motor independent steering, VMC vehicle motion control, and CTB battery-integrated body technology [3] - This technology offers unique features such as extreme steering, crab walking, and enhanced stability systems, ensuring user safety and vehicle agility [3] Global Expansion - The "BYD SHENZHEN" ship was successfully delivered on April 22, 2025, enhancing BYD's global logistics capabilities [3] - This ship can carry 9,200 standard vehicles, equivalent to transporting cars that could fill 20 football fields, improving the efficiency of global transportation for new energy vehicles [3] Market Entry - On April 18, 2025, BYD launched the Song PLUS DM-i, a mid-size SUV equipped with DM-i super hybrid technology, in Hanoi, Vietnam [3] - This marks the first introduction of this technology in Vietnam, providing consumers with a new, efficient, and sustainable travel option [3]

Core Viewpoint - BYD has achieved remarkable financial performance in 2024, surpassing both Audi and Tesla in revenue, with a strong focus on technology, market expansion, and ambitious growth plans [3][6][10]. Financial Performance - In 2024, BYD's global sales reached 4.27 million units, a year-on-year increase of 41% [3][10]. - The company reported a revenue of 777.1 billion yuan, up 29.02% year-on-year, with automotive-related revenue accounting for 617.38 billion yuan, representing 79.45% of total revenue [3][6]. - BYD's total profit reached 49.68 billion yuan, a 33.3% increase, with a net profit attributable to shareholders of 40.25 billion yuan, up 34% [6][10]. Market Position - BYD's revenue has surpassed that of Audi and Tesla, with Audi's revenue at approximately 509.4 billion yuan and Tesla's at about 710.7 billion yuan [6][10]. - The company's gross margin for automotive business stood at 21.02%, higher than competitors like Li Auto and Tesla [6][10]. Dividend and Cash Reserves - BYD announced a cash dividend plan, distributing 39.74 yuan per 10 shares, totaling approximately 12.08 billion yuan [7][10]. - The company's cash reserves reached a historical high of 154.94 billion yuan [26]. International Expansion - BYD's overseas sales reached 417,000 units in 2024, a 71.8% increase, contributing to 28.55% of total revenue [15][18]. - The company plans to establish factories in Southeast Asia and Brazil to enhance local production capabilities [16][18]. R&D Investment - BYD's R&D expenditure in 2024 was 54.16 billion yuan, a 35.68% increase, significantly higher than competitors like Geely and Li Auto [20][21]. - The company employs 120,000 R&D personnel, reflecting an 18.24% growth, which supports its technological advancements [21][22]. Strategic Goals - BYD aims to achieve an annual sales target of 10 million vehicles by 2028, with 5 million expected from overseas markets [18][19]. - The company is focused on transitioning from a "cost-effective" to a "technology premium" model, emphasizing high-end brands like Tengshi and Yangwang [12][13].