Yangtze Securities: Maintains BYD "buy" rating, profit potential expected to continue to improve

The Yangtze Securities research report pointed out that BYD's overall sales volume in February was 190,000 vehicles, a year-on-year decrease of 41.1% and a month-on-month decrease of 9.5%. Passenger car sales were 188,000 vehicles, a year-on-year decrease of 41.0% and a month-on-month decrease of 8.6%. Overseas sales exceeded 100,000 vehicles again, and new technologies and product cycles in March are gathering momentum. As a global leader in new energy vehicles, BYD's technology and scale are building a competitive advantage beyond the industry, awaiting the new technology cycle. With the warming up in March entering the peak season of the quarter, BYD's stock has the potential to rise. Meanwhile, under the strategy of intelligentization, the transformation towards smart driving is firm. With ample reserves of Tang, Yuanwang, and FCB models, BYD is accelerating its layout in the high-end market. Continued efforts in overseas markets will further improve the overseas channels and vehicle matrix. With the increasing efforts in overseas markets and high-end product lines, profitability is expected to continue to improve. It is estimated that the company's net profit attributable to shareholders will reach 35 billion yuan by 2025, with a corresponding PE multiple of 23X, and it maintains a "buy" rating.