CICC: Maintains BYD COMPANY (01211) "Outperform" rating, target price raised to HKD 410.

CICC released a research report stating that it maintains a "outperform" rating for BYD Company Limited (01211) with a target price increase by 16% to HKD 410. The bank maintains its profit forecast for the company in 2024 and raises its net profit forecast for 2025 by 11% to RMB 55.56 billion, estimating a net profit of RMB 68.7 billion in 2026. BYD Company Limited's DM5.0 product cycle is strong, with the company's market share remaining high last year, and total sales volume increased by 41.3% year-on-year to 4.272 million vehicles. According to data from the China Association of Automobile Manufacturers, BYD Company Limited's wholesale market share remained at 35% last year. The company's overseas sales of new energy passenger vehicles increased by 71.9% year-on-year to 417,000 units last year. The bank pointed out that looking ahead to the full year of 2025, it is expected that more hybrid models will be launched in overseas markets. In terms of regional distribution, South America and Europe are expected to contribute significant growth, with overseas sales expected to reach 800,000 units for the full year. CICC believes that as an industry leader, the company is expected to drive the popularization of intelligent driving technology in vehicles priced below RMB 150,000 and promote the penetration of middle-level intelligent driving technology, while excelling in high-level intelligent driving technology, which could enhance product competitiveness, stabilize prices, and increase profits.