According to a report issued by China Merchants Securities, BYD's net profit for the first quarter of 4.57 billion yuan (same below) increased 10.6% year-on-year in line with expectations. Steady performance under the overall weak conditions of the market. High-end products and an increase in the share of exports are the keys to driving performance growth. The gross margin was 21.9%, an increase of 4 percentage points year-on-year. The gross profit margin of automobile sales (excluding BYD Electronics) was 28.1%, up 7.3 percentage points from year to year. China Merchants Securities expects the company's profit margin to be relatively low in the first quarter and is expected to pick up in the next quarter. Keep the profit forecast unchanged and maintain the “Overstock” rating and target price of HK$300.