Incident: The company released the May 2024 production and sales report. In May, the company's total sales volume was 332,000 units, up 38.1% year on year; of these, pure electric passenger cars sold 146,000 units in May, up 22.4% year on year, and plug-in hybrid passenger cars sold 184,000 units in May, up 54.1% year on year. Commercial vehicle sales in May were 1,329 units, up 17.8% year over year.
In May, overseas sales of 37,000 new energy passenger vehicles were sold, an increase of 267.5% over the previous year.
The launch of DM 5.0 and new models is expected to boost sales: According to data from Dynasty Network, the company sold 172,000 units in May, an increase of 37.1% over the previous year. According to Ocean Network data, the company sold 143,000 vehicles in May, an increase of 39.5% over the previous year. The Tension brand sold 12,000 units in May, up 11.1% year over year. Look up to the brand's May sales of 608 vehicles. Equation Panther sold 2,430 units in May. On May 28, BYD's fifth-generation DM technology launch and Qin L DM-i and SEAL 06 DM-i press conference were held in Xi'an. At the same time, the Qin L DM-i and SEAL 06 DM-i are the first to be launched and delivered with fifth-generation DM technology.
Overseas markets continue to expand, and the globalization process is further accelerated: after ten years of intensive cultivation, BYD brought innovative products such as new energy passenger cars, electric buses, electric trucks, electric forklifts, and cloud rail to Brazil. In July 2023, BYD announced the establishment of a large-scale production complex composed of three factories in Camacari City to lay out the entire industrial chain. Looking ahead, BYD plans to reach 250 dealer stores in Brazil by the end of 2024. Currently, BYD's sales network in Brazil covers 39 dealer groups, 100 active stores and 135 designated outlets. On May 28, BYD celebrated the grand opening of its first store in Riyadh, the capital of Saudi Arabia. The opening ceremony was jointly held by BYD and Saudi dealers. According to the Saudi government's plan, the share of new energy vehicles in Riyadh is expected to reach 30% by 2030. In addition to launching a rich NEV product line, BYD will continue to build a new energy ecosystem with local dealers.
Investment advice: We expect the company to achieve net profit of 369.85/453.07/54.342 billion yuan in 2024-2026. The corresponding PE was 19.24 /15.71/13.10 times, respectively, maintaining the “gain” rating.
Risk warning: New model sales fall short of expectations; industry competition intensifies; overseas market expansion falls short of expectations.