BYD (1211 HK) Hit New High! July 12, 2022 150

PSR Recommendation: BUY Status: Upgraded
Target Price: HKD399

Investment Summary
Sales Volume Soars by 163% YoY in June
The latest sales data show that BYD’s new energy vehicle sales hit another record high in
June: a total of 134,036 new energy vehicles were sold, up163% yoy and 17% mom, which is
expected to be higher than the overall rise in domestic new energy vehicles. The cumulative
sales volume for the first six months was 641,350 units, up 314.9% yoy, reaching 43% of the
annual sales target of 1,500thousand units.
From the perspective of different types, the sales volume of new energy commercial
vehicles was 274 units in June, down 78% yoy and 64% mom. The sales volume of pure
electric passenger vehicles was 69,544 units, up 247% yoy and 30% mom, while the sales
volume of plug-in hybrid electric vehicles was 64,218 units, up 219.5% yoy and 5.6% mom.
The cumulative sales volume for the first six months was 323,519 and 314,638 units,
respectively, up 246% yoy and 454% yoy. The former was mainly driven by the expansion of
production at the Shenzhen plant, while the latter’s slightly lower yoy growth was due to the
impact of the shutdown of the Changsha plant for investigation..
A Number of Models Continue to Be Sold Well, and New Vehicle Models Are Launched
Intensively
The overall vehicle market picked up in June as the resumption of work and production
continued. With strong product competitiveness, the flagship model of the Dynasty series,
Han, saw hot sales, recording sharp increases for several months in a row. In June, its sales
volume exceeded 20 thousand units for two consecutive months, reaching 25,439 units, up
203% yoy, of which the delivery of Han DMI was up 386% yoy and that of Han EV closed to
13 thousand units. The cumulative sales volume for the first six months exceeded 250
thousand units, continuing to lead the sedan segment of the same class.
The sales of other models of the Dynasty series was also high: 8,134/26,623/32,077/19,731
units of the Tang/Qin/Song/Yuan series were sold in June, up 159%/71.7%/113%/1494% yoy,
with a cumulative sales volume of 55,825/146,737/163,356/78,662 units in the first six
months.
In addition, the Destroyer 05/Dolphin/e series recorded a sales of 7,464/10,376/3,918 units,
respectively.
This year and next are major product years for BYD, which is expected to launch no less than
20 new vehicle models in total, including facelifts. This year, the Destroyer 05, Seal, Denza
D9, 22 Tang EVs, 22 Han EVs, DM-i, DM-p and Qin Plus DM-i have already been launched,
and in the second half of the year and next year, BYD will continue to launch Denza SUVs,
the Warship series, Sea Lion and Seagull. The product matrix will be further improved and,
judging from the current optimistic pre-sale situation, the product unit price is expected to
continue to see upward breakthrough

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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