From Investing.com:

Citi Research predicts higher stock ratings for BYD in the near future. Analysts expect the company’s margin trend to recover due to scale advantages in battery and ADAS technology. Citi revised their forecasts for NP/car for the years 2023-2025 to Rmb10.2k, Rmb9.1k, and Rmb10.3k. NP/car for 2024 is expected to remain robust despite heightened competition.

BYD plans to launch L3 ADAS technology next week, triggering positive catalysts. The company also aims to export 400,000 electric vehicles in 2024, with high-end models accounting for 315,000 units. PHEV volumes for 2024/25 are projected to increase to 57%/59%.

Despite a potential decrease in NP/car due to the low season in the first quarter of 2024, BYD anticipates wholesale volume at around 638k units. Analysts expect the company to maintain high-end vehicle Net Profit Margins at 10-11% and a battery cost saving of Rmb14.6 billion in 2024.

Citi anticipates BYD’s NP/car to be in the range of Rmb10.2-10.8k in the fourth quarter of 2023, with an additional Rmb1.9 billion subsidy to dealers. The company aims to capitalize on its scale advantages in battery and ADAS technology as the market for electric vehicles consolidates into 2025.



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