The company is a leading domestic NEV enterprise. The leading production capacity channel layout company was founded in 1995. With years of technological innovation and production practices, the company has built in-depth R&D and fine cost control capabilities for the entire industry chain, from upstream battery raw materials, IGBT, SiC and other key components, to midstream new energy three-power systems, hybrid platforms, vehicle electronics, chassis, interior, etc., to downstream automobile sales and financial services. In terms of production capacity, the company's total planned domestic production capacity has reached 4.75 million vehicles, and the total planned overseas production capacity has reached 1.1 million vehicles. In terms of channel layout, the total number of the company's five major channel networks has reached about 4,099. At the same time, the average sales volume of the company's single store in the first quarter of 2024 reached 176.4 vehicles, and single-store sales efficiency is in a leading position in the industry.

The company has now achieved a full price segment layout. High R&D investment drives the brand upward. The company proposed a “kangaroo” enterprise development model in a forward-looking manner as early as 2007, and began building an integrated industry with new industries and new tracks. Through more than ten years of practice, the company has now achieved full coverage of the NEV industry chain, effectively reducing the risk of drastic changes in raw material prices, effectively reducing costs and improving production efficiency. Also, as a result, models under 200,000 yuan have a certain pricing initiative. In addition, the company has relied on the highest R&D investment in the domestic automobile industry to build a technical fish pond including many disruptive technologies and applications such as blade batteries, fifth-generation DM hybrid technology, and e-platform 3.0EVO, to promote the continuous upward development of the BYD brand.

The two-pronged approach of “production capacity going overseas” and “fleet going overseas” helps the company expand globally. It is expected that by 2024, the company will usher in a peak period of overseas production. At present, the joint venture plant in Uzbekistan has been officially put into operation. Both the Thai plant and the Brazilian plant are scheduled to be officially put into operation in the second half of 2024. The production capacity is aimed at Central Asia, Southeast Asia, South America and other regions. The superimposed company will deliver 8 large car carriers in the next two years, and the company's overseas development stage has ushered in a stage of rapid development.

Investment advice and profit forecasting

As the global NEV penetration rate continues to rise, the company is expected to achieve a simultaneous increase in domestic and overseas market share. It is estimated that in 2024-2026, net profit attributable to the company's parent company shareholders is 394.79, 548.30 and 68.421 billion yuan respectively. According to the latest share capital estimates, the corresponding basic earnings per share are 13.56, 18.83, and 23.50 yuan/share, respectively. According to the latest stock price estimates, the corresponding PE valuations are 18.48, 13.31, and 10.67 times, respectively. Considering that the company is in a leading position in the industry in terms of cost control, technology research and development, market volume, and overseas layout of new energy vehicles, they are optimistic about the company's medium- to long-term growth space, covered for the first time, and given a “buy” rating.

Risk warning

The slowdown in NEV growth has increased the risk of industry competition, the risk that overseas NEV penetration rate falls short of expectations and that overseas trade barriers will increase, and the company's intelligent business development falls short of expectations