A：Company Basic Information
Full Name: BYD Company Limited
Stock Code: 002594
Stock Abbreviation: BYD
Region: Shenzhen, Guangdong Province
Industry: New Energy Vehicles, Battery, Electronics, Rail Transit
Establishment Date: February 10, 1995
Founder: Wang Chuanfu
Company Website: https://www.byd.com
Registered Address: No. 3009 BYD Road, Pingshan New District, Shenzhen, Guangdong Province
Total Share Capital: As of March 31, 2024, the company's total share capital is approximately 2.828 billion shares
Total Market Value: As of the closing on October 18, 2024, the company's total market value is approximately 780 billion yuan
Business Scope: Research and development, production, and sales of new energy vehicles, batteries, electronics, rail transit, and other products
Company Profile: BYD Company Limited was established in 1995 and is a high-tech enterprise with businesses in IT, automobiles, new energy, and rail transit. BYD has a significant presence in industries related to electronics, automobiles, new energy, and rail transit, and is committed to providing zero-emission energy solutions. The company is listed on the Hong Kong and Shenzhen Stock Exchanges, with both revenue and market capitalization exceeding RMB 100 billion. BYD's products and solutions are widely used in smart cities, transportation, energy, education, and other fields, making it a leading enterprise in the new energy vehicle industry globally .
B：Value Investment Analysis
Key Financial Indicators:
In 2023, the company achieved a total operating income of 89.34 billion yuan, a year-on-year increase of 7.42%;
Achieved an operating profit of 16.04 billion yuan, a year-on-year increase of 8.50%;
Achieved a net profit attributable to shareholders of listed company of 14.11 billion yuan, a year-on-year increase of 9.89%;
Research and development investment was 11.39 billion yuan, a year-on-year increase of 16.1%, with R&D personnel accounting for nearly 50% of the total number of employees.
Company Investment Value:
BYD, as a leading enterprise in the global new energy vehicle industry, demonstrates its investment value in the following aspects:
Technology Innovation: The company continues to increase R&D investment, maintaining a technological edge and driving innovation in products and solutions.
Market Position: BYD holds a significant position in the global new energy vehicle market, with a market share of 25.9% according to Omdia report data in 2023.
Business Diversification: The company not only has a deep accumulation in the new energy vehicle field but also actively expands into innovative businesses such as rail transit and energy storage, enhancing the company's profitability and risk resistance.
Stable Equity Structure: The company is backed by the state-owned assets supervision and administration commission, with a stable equity structure providing a solid foundation for the company's long-term development.
Company Growth Potential:
BYD's growth potential mainly comes from the following aspects:
Rapid Development of the New Energy Vehicle Market: With the global demand for new energy vehicles increasing, BYD is expected to achieve rapid business growth based on its technological accumulation and market advantages in the new energy vehicle field.
Expansion of Innovative Businesses: The company's innovative businesses, such as rail transit and energy storage, are in a rapid development stage and are expected to become new growth points for the company.
International Strategy: The company continues to promote its international strategy, with overseas market revenue accounting for an increasing proportion year by year. Despite the uncertainty of the international political environment, the company's international layout helps to diversify risks and achieve a balanced development of the global market.
Industry Support Policies:
The new energy vehicle industry, where BYD is located, is strongly supported by national policies. From the "Eighth Five-Year Plan" to the "14th Five-Year Plan," the support policies for the new energy vehicle industry have evolved from abstract to concrete, and from simple to diversified development trajectories. Especially during the "14th Five-Year Plan" period, intelligent monitoring was directly mentioned, requiring the development of intelligent security monitoring and the research and development of intelligent monitoring systems and other industrial control equipment, providing policy support for industry development.
International Policy Risks:
The international policy risks faced by BYD mainly come from the uncertainty of the international trade environment, especially the sanctions imposed by the United States on Chinese high-tech companies. The company needs to reduce the impact of international policy risks on its business through diversified market strategies, strengthening independent research and development capabilities, and expanding international cooperation.
A.Top Investment Review:
BYD, as a leading enterprise in the global new energy vehicle industry, demonstrates good investment value with its technological innovation, market position, business diversification, and other advantages. The company continues to increase R&D investment, promote innovation in products and solutions, and actively expand into innovative businesses and international markets, enhancing the company's profitability and risk resistance. Although facing the challenge of international policy risks, the company is expected to achieve continuous and stable development through robust business strategies and international layout. Considering the company's financial performance, growth potential, and industry development trends, BYD is a target worth investing in for the long term.