BYD COMPANY(01211.HK)：2024 RESULTS IN-LINE WITH EXPECTATIONS; NEW PRODUCTS AND NEW FIELDS ARE PROGRESSING SIMULTANEOUSLY-格隆汇

机构：国泰君安国际
研究员：Ivan Wu

　　Maintain "Buy" and raise TP of HK$430.00. We maintain BYD’s (the "Company") 2025F-2026F EPS at RMB17.49 and RMB21.20, and add 2027F EPS at RMB24.58. As the industry leader in the field of NEVs, the Company's earnings performance certainty is one the strongest during the industry consolidation process. With reference to comparable companies and considering its leading position, we give the Company a 21.7x 2025F PE and maintain "Buy" rating with TP of HK$430.00.
　　2024 results was in-line with expectations. In 2024, the Company achieved revenue of RMB777.102 bn, a yoy increase of 29.0%; net profit attributable to the Company was RMB40.254 bn, a yoy increase of 34.2%; net profit attributable to the Company after deducting non-recurring items was RMB36.983 bn, a yoy increase of 29.9%. Among them, in 4Q2024, the Company achieved a net profit attributable to the Company of RMB15.016 bn, a yoy increase of 73.1% and a qoq increase of 29.4%; net profit attributable to the Company after deducting non-recurring items was RMB13.791 bn, a yoy increase of 51.3% and a qoq increase of 26.8%.
　　Sales continue to be strong, with a good level of profitability. In 2024, the Company achieved sales of 4.272 mn units, a yoy increase of 41.3%; exports sales of 433,000 units, a yoy increase of 71.8%. Based on the CAAM's domestic PV sales of 22.608 mn units and NEV PVs of 11.05 mn units in 2024, the Company's domestic PV market share and NEV PV market share reached 17.0% and 34.7%, respectively. In 4Q2024, the Company achieved a GPM of 17.01%, a qoq decrease of 4.88 ppts, mainly due to the impact of factors such as warranty deposits under the new accounting standards. If the previous accounting standards were taken into account, the GPM was expected to be stable qoq; In 4Q2024, the Company achieved a net profit margin of 5.58%, a qoq decrease of 0.45 ppts, mainly due to the R&D expenses of RMB19.876 bn in 4Q2024, a qoq increase of RMB6.178 bn. Excluding BYD Electronic's profits, we estimate the Company's profit per vehicle in 4Q2024 to be approximately RMB8,700, which was flat qoq.
　　New products and new fields drive sales performance growth. The Company's high-end intelligent driving assistance system "Eye of God" was first launched with 21 models of RMB70,000-RMB200,000, marking the first year of equal rights for intelligent driving in 2025. The Super e platform technology was released for the first time with Han L/Tang L EV to start megawatt flash charging technology, consolidating the leading position in BEV market in terms of technology; mid-to-high-end brands such as Denza and Formula Leopard and overseas strategies continue to deepen, which is expected to continue to provide strong sales performance growth for the Company.
　　Risks: 1) the demand for NEVs may be lower than expected; 2) the price war in the NEV industry may continue to intensify.