On September 5, Haitong Securities research report pointed out that BYD (002594.SZ) auto business is steadily rising, and the fifth generation DM technology is expected to drive the company's new vehicle cycle. The Q2 auto sales volume in 2024 increased both month-on-month and year-on-year. According to the sales volume data from the China Passenger Car Association, the company sold 1.607 million new vehicles in H1 2024, a year-on-year increase of 29%; among them, 0.983 million new vehicles were sold in Q2, with a year-on-year increase of 40% and a month-on-month increase of 57%. The cost scale effect of Q2 has emerged, driving the improvement of profitability. In May 2024, the company officially launched the fifth generation DM technology, upgrading the three core components comprehensively, and achieving a fuel consumption of 2.9L per 100 kilometers while running on electricity. The bank believes that the company's new hybrid technology has a competitive advantage, and new vehicles built on the new platform are expected to drive the company's new vehicle cycle and further increase sales volume. Considering comparable companies, and taking into account BYD's leading position in the new energy vehicle sector, the bank gives the company a 2024 PE ratio of 20-22 times, corresponding to a reasonable value range of 263.24-289.56 yuan. The bank maintains a rating of "outperform the market."