According to a report issued by China Merchants Securities, BYD's net profit for the first quarter was RMB 4.57 billion (same below), up 10.6% year-on-year, in line with expectations. It performed steadily under the overall weak conditions of the market. The increase in the share of high-end products and exports was the key to driving performance growth. The gross margin was 21.9%, an increase of 4 percentage points year-on-year. The gross profit margin of automobile sales (excluding BYD Electronics) was 28.1%, up 7.3 percentage points from year to year. China Merchants Securities expects the company's profit margin to be relatively low in the first quarter, and it is expected to pick up starting the next quarter. Keep the profit forecast unchanged, and maintain the “Overstock” rating and target price of HK$300.