Golden Guard Financial News | bocom intl issued a research report stating that byd company limited (01211) 3Q24 net income attributable to shareholders increased by +11.5%/+28.1% to 11.6 billion yuan. The gross margin in 3Q24 was 21.9%, exceeding the bank's and market expectations, an increase of +3.2 percentage points from the previous quarter, mainly due to a significant improvement in the gross margin of the auto business. Operating expenses in 3Q24 all saw significant quarter-on-quarter growth, with sales/management/research and development expenses increasing by +27.8%/+20.1%/52.0% respectively. Due to the increase in operating expenses, the net income per vehicle in 3Q was approximately 0.0093 million yuan, slightly lower than expected.
The bank raised its profit forecasts for 2024-2026 by 14%/19.4%/23.3%, mainly reflecting higher sales forecasts and the contribution to profit margin improvement driven by high-end vehicle models and overseas sales growth. According to the Sum of the Parts valuation, the target price has been raised from 306.48 Hong Kong dollars to 379.22 Hong Kong dollars. Maintain a buy recommendation.