According to the research report released by CICC, it maintains a "outperform" rating on BYD Company Limited (01211) and raises its target price by 13.6% from HKD 264 to HKD 300. The bank believes that the next catalyst is the release of Blade Battery 2.0, the upgrade of Song, Han, Tang vehicle models, and overseas capacity expansion.

The bank believes that BYD has operational efficiency advantages compared to peers around the world, but it is structurally backward in terms of average selling price and high research and development costs. In the short term, with the success of the DM5.0 platform, the bank has raised BYD's sales forecast for this year from 3.8 million to 4 million and its profit forecast to 38 billion yuan.

In the rapidly growing and developing mainland electric vehicle market, the bank believes that sales volume is still more important than overall price cuts. In the long run, the bank's cost comparison study with globally renowned peers shows that BYD's ambition to achieve double-digit net profit margins and sales volume of 6 to 10 million units (medium to long-term) is achievable.