BYD (1211 HK) Took a Firm Lead Position October 24, 2023 182

PSR Recommendation: BUY Status: Maintained
Target Price: HKD321

Investment Summary
BYD Took a Firm Lead for its 3Q23 Results
BYD recently published the forecast for its results of Q3 2023. It reported the net profit
attributable to the parent company of RMB20.5-22.5 billion in 9M 2023, up 120-142% yoy;
the net profit after deduction of non-recurring profit or loss of RMB 18.3-20.2 billion, up
119-142% yoy, with the basic EPS of RMB7.06-7.74. Calculated based on the data from the
latest report, its net profit in Q1/Q2/Q3 would be RMB 4.13/6.8/9.5-11.5 billion, up
411%/145%/67-102% yoy.
In 9M 2023, the industry of new energy vehicle in China maintained rapid growth, with sales
volume increasing by 37.5% yoy. BYD’s sales volume of new energy vehicles robustly
increased by 76% from the high base (1,180 thousand units) of 9M last year to 2,079.6
thousand units, with a market share in the market of new energy vehicles reaching 40%,
increasing by 11.4 pcts from the level of 2022. In 2023, BYD owned constantly boosted
brand strength, the scale advantage of continuously expanded sales volume, the cost

control capabilities of industrial chains, and the dropping prices of upstream raw materials.
Due to these strong points, in the auto industry with intensified competition during H1, BYD
continued to maintain good profitability, giving it a markedly rising single vehicle profit. In
H1, BYD had a net single vehicle profit of approximately RMB 11,600, which increased by
near 30% qoq. In terms of the component and assembly business of mobile phones,
benefiting from the increased shares of major customers, and boosted emerging business
such as new energy vehicles, and new types of smart products, BYD promoted its capacity
utilization, further optimized its business structure, and substantially improved its profits.

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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