Jingu Financial News | First Shanghai Research pointed out that BYD Company (01211) achieved a revenue of 502.2 billion yuan in the first three quarters, up 18.9% year-on-year; realized a net income of 25.2 billion yuan, up 18.1% year-on-year; Q3 single quarter revenue was 201.1 billion yuan, up 14.2% quarter-on-quarter; gross profit was 44 billion yuan, up 33.7% quarter-on-quarter; overall gross margin was 21.9%, up 3.2 percentage points quarter-on-quarter; net income attributable to shareholders was 11.6 billion yuan, up 28% quarter-on-quarter. The company's electric vehicle sales have been growing month by month, showcasing scale advantages that further enhance the company's profitability, and overall performance meets expectations.
In November, the company's electric vehicle sales continued to maintain historical highs, with a total of 0.504 million units sold, a month-on-month increase of +67% / +1%. The strong November sales were mainly due to the continued hot sales of the DMI5.0 model. Plug-in hybrid sales for the month were 0.306 million units, with a month-on-month increase of +133% / -2%, increasing the proportion to 61%; pure electric vehicles were 0.198 million units, with a month-on-month increase of +71% / +4%. The cumulative sales from January to November were 3.74 million units, up 40% year-on-year.
The bank stated that 2024 will be a big year for the company's hybrid models, as the DM5.0 will be successively adopted in various models, leading to rapid growth in sales volume and market share, with annual sales expected to exceed 4 million units. 2025 will be a big year for the company's pure electric models, with the release of a new generation of pure electric platforms and related technologies. The high-endization of the company's models and the increase in overseas sales are expected to continue to increase the net income per vehicle. The bank expects the company's comprehensive net income for 2024-2026 to be 37.47/45.82/55.9 billion RMB. Using a distributed valuation, the company is valued at 20 times PE for the automotive business and 15 times PE for the electronics business in 2025, with a comprehensive valuation of 888.1 billion Hong Kong dollars. The company's target price for 2025 is adjusted to 328.3 Hong Kong dollars, representing a 29.4% increase from the current price, with a buy rating.
