Bohai Securities: BYD New Energy vehicle leading Product Matrix continues to improve for the first time to be "increased" rating

Bohai Securities issued a research report that BYD (002594.SZ) new energy vehicle leader, the product matrix continues to improve. It is estimated that the company's operating income from 2021 to 2023 will be 1900.72, 2356.57 / 280.795 billion yuan, respectively, with a year-on-year growth rate of 21.38%, 23.98%, 19.15%, and 47.10, 67.90 / 8.621 billion yuan, respectively, with a year-on-year growth rate of 11.25%, 44.15%, 26.97%, 1.6537, 3.01 yuan per share, and 149, 10381 times, respectively, with a year-on-year growth rate of 11.25%, 44.15% and 26.97%, respectively. Coverage for the first time, giving a "overweight" rating.

Bohai Securities pointed out that the company is the leader of independent new energy vehicles, the product matrix continues to improve, mixed and pure electric power at the same time, product competitiveness is expected to achieve sustained growth in sales under the wave of electrification and intellectualization. At the same time, the spin-off and listing of BYD Semiconductor has been steadily promoted, and BYD Electronics's North American customer project has been mass-produced and climbed the slope. The company has room for development and growth potential, performance is expected to continue to grow.

The main points of Bohai Securities are as follows:

The insertion and mixing technology will rise abruptly based on its accumulated strength to strengthen its mid-range advantages.

In the mix, the company adopts the dual platform strategy of DM-p and DM-i, in which DM-p pursues the ultimate power and DM-i pursues the ultimate economy. DM-i can achieve ultra-low fuel consumption with the support of three core technologies: Snapcloud-plug-in special high-efficiency engine, dual-motor EHS super-hybrid system and DM-i super-hybrid special power blade battery. Qin PLUSDM-i/ Song PLUSDM-i/ Tang DM-i equipped with DM-i has been on the market, with a price of 10 ~ 220000 yuan, which is located on the middle end. Compared with other car companies with mixed models of the same level, they have advantages in fuel consumption and price. The target market of these three models is joint venture fuel vehicles of the same level and price, and they have advantages in space, fuel consumption, intelligence and so on, and are expected to replace the fuel vehicle market. With reference to Jingpin's joint venture fuel vehicle sales, Bohai Securities predicts that the steady-state monthly sales of Qin PLUSDM-i/ Song PLUSDM-i/ Tang DM-i are expected to reach 2.5max 1.0 / 5000 respectively.

The layout of pure electric is perfect, and Han complements the high-end market.

BYD Han EV/DM was launched in July 2020, located in the high-end market, which complements the deficiency of Tang's only high-end model. By May 2021, Han's cumulative sales have reached 84400. Han has the advantages of high-quality performance, exquisite interior decoration, scientific and technological design, intelligent configuration and other advantages, the market reputation continues to improve, and steady-state monthly sales are expected to maintain more than 8000 vehicles (including Han EV/DM). In April 2021, BYD officially launched e-platform 3.0, which aims to create a more intelligent and efficient pure electric platform, which has the four advantages of intelligence, efficiency, safety and aesthetics. The first new car, EA1, has been announced by the Ministry of Industry and Information Technology and is expected to be launched in the second half of the year, followed by more pure electric models to continuously improve the pure electric product matrix.

Continuous intelligent layout, blade battery out of sheath

The company has released DiLink intelligent network connection system, DiPilot intelligent driving assistance system and so on, which have been equipped in Han EV/DM, Tang EV/DM-i/DM and other models, and have bought shares in Huada Beidou. The second half of the electric car is intelligent, and the intelligent layout of the company will enhance the competitiveness of the products.

In March 2020, the company officially launched the blade battery, which has been improved in terms of safety, volume utilization and energy density through structural innovation, which has aroused market concern and hot discussion as soon as it is launched. At present, the company's power battery production capacity is steadily advancing, in which blade battery is the focus of future planning. With the continuous growth of the company's new energy vehicle sales and the gradual release of external supply batteries, the company's power battery loading is expected to accelerate growth.

Risk tips: economic fluctuations are higher than expected; the development of new energy vehicles is not as expected; capacity expansion is not as expected; the external supply of power batteries is not as expected; BYD semiconductor spin-off listing is not as expected; exchange rate fluctuation risk.