Incident: On December 1, 2024, the company released the November production and sales report. In November, it achieved sales volume of 0.507 million vehicles, +40.0% year-on-year, and cumulative sales volume of 3.757 million vehicles from January to November 2024, +40.0% year-on-year.

Policies helped increase demand, and sales surpassed 0.5 million in November. November Dynasty + Ocean sold 0.485 million vehicles, +68.2% year over month, +0.4% month on month, Tension sold 0.01 million units, -15.5% year on month, -7.2% month on month, looking up to 302 units, -26.0% year on month, +7.1% month on month, Equation Panther sold 8521 units, +1261.2% month on month, +41.4% month on month. From January to November 2024, Dynasty+Ocean's cumulative sales volume was 3.578 million units, +40.0% year over year. Tension had cumulative sales of 0.111 million units, -4.3% year over year. Looking up to the cumulative sales volume of 7143 units, and Equation Leopard's cumulative sales volume was 0.045 million vehicles. The trade-in subsidy was increased in July 2024, and the company mainly benefited as a leading car company in mainstream prices in the industry. After reaching 0.503 million vehicles in October, it once again achieved monthly sales exceeding 0.5 million.

Overseas markets continue to expand, and exports are expected to open up the sales ceiling. The company exported 0.031 million new energy passenger vehicles in November, +1.1% year on year, -0.7% month on month, and cumulative export of 0.36 million vehicles from January to November 2024, +74.2% year on year. The Tension brand officially entered the Thai market in November, marking an important step in Tension's strategic layout in Southeast Asia's largest automobile market; on November 5, it went on sale in Mexico to further develop the Latin American market; on November 12, the Sea Lion 07 EV was launched in Europe. The ultra-high performance motor demonstrated its technical strength, and product delivery is expected to begin in 2025. The company's continued development of major automobile consumer markets around the world is expected to open up sales growth ceilings.

The product matrix has been further expanded, and the smart driving experience has been upgraded. On November 12, BYD's 30th anniversary flagship, the Panther 8, was officially launched at a price of 0.3798-0.4078 million yuan. The new car is equipped with the Huawei Qiankun Smart Driving ADS3.0, which can achieve the functions of parking space to parking, parking, and remote car removal. It is equipped with a Yunni-P intelligent hydraulic body control system, with a battery life of up to 1200 km, and a comprehensive fuel loss of 8.5 L/100 km. The launch of Leopard 8 further broadened the product matrix of the Equation Panther brand, while the cooperation with Huawei brought consumers a new smart off-road experience.

Profit forecast: In 2024-2026, the company is expected to achieve revenue of 7830.057, 1001.832, 1208.546 billion yuan, and net profit of 39.046, 56.915, and 68.33 billion yuan, giving it a “Highly Recommended” rating.

Risk warning: Risk of downstream demand falling short of expectations, risk of increased industry competition, risk of fluctuating raw material prices, etc.