Changjiang Securities: BYD's profitability is expected to continue improving, maintaining a "Buy" rating.

According to a research report by Changjiang Securities, BYD's total sales in July reached 419,000 units, a year-on-year increase of 21.8% and a month-on-month increase of 3.9%. Passenger car sales amounted to 411,000 units, with a year-on-year increase of 20.5% and a month-on-month increase of 3.5%. Exports hit a new high, with nearly 180,000 units sold abroad in July. The new cycle of fast-charging technology supports continued domestic sales growth, with July sales consistently increasing both year-on-year and month-on-month. As a global leader in new energy vehicles, BYD is building competitive advantages through technology and scale, with megawatt fast-charging and smart driving upgrades heralding a new technological period. Supported by BYD's next-generation fast-charging technology, significant innovations in pure electric technology are underway, continuously strengthening its advantages in electrification. BYD's new vehicle matrix for 2026 is gradually being promoted, and the release of new technologies is expected to enhance product competitiveness and stimulate domestic sales. At the same time, under the strategic push for intelligence, the transformation towards smart driving remains firm. The models from Tengshi, Yangwang, and Fangchengbao are well-stocked, accelerating the layout in the high-end market. Efforts in overseas markets continue, with further improvements in overseas channels and model matrices. With the expansion of exports and high-end offerings, profitability is expected to continue to improve, maintaining a "buy" rating.