Bank of America Securities: Reiterates "Buy" rating on BYD COMPANY (01211) with target price raised to HK$405.

Bank of America Securities released a research report stating that it has reiterated a "buy" rating on BYD COMPANY (01211), raising its earnings per share forecasts for 2024, 2025, and 2026 by 5%, 12%, and 15% respectively to reflect higher sales forecasts and economies of scale; the target price has been raised from HK$342 to HK$405. The report mentioned that the company has announced that its advanced driver assistance system "Tianshen Eye" will be applied to 21 current models and will be a standard configuration for models priced above 100,000 RMB, as well as some models priced below 100,000 RMB. The bank has factored in BYD Company Limited's sales volume in the fourth quarter of last year, and has raised its sales forecasts for this year and next year by 12% and 15% respectively to reflect a more optimistic growth outlook, mainly benefiting from the DM5.0 model and autonomous driving technology. The bank stated that BYD Company Limited will deploy the "Tianshen Eye C" technology to the entry-level model Seagull (retail price of 79,000 RMB), making all its electric models more competitive and attractive. The bank believes that BYD Company Limited and other leading mainland Chinese OEMs, such as XPENG-W (09868) in the autonomous driving field, may further increase their market share in the mainland market from foreign brands. In addition, the bank expects mainland consumers to pay more attention to autonomous driving functions when deciding to purchase a car. BYD Company Limited is ranked fifth in global sales volume in 2024, benefiting from the new DM5.0 model, the new generation of electric vehicles, and upgraded autonomous driving technology, with a high chance of further improvement in the ranking in 2025.