Jinwu Financial News | According to Guosheng Securities Research Report, BYD Electronics' (00285) Q4 revenue was 37.8 billion yuan, up 5% year on year, and annual revenue of 130 billion yuan, up 21% year on year. The main driving factors include: 1) the company's increased supply share of major overseas customers, and 2) the rapid growth of the automotive intelligence product division, which relies on the parent company. By product structure, the company's revenue from 2H23 components/consumer electronics assembly/new smart products/automotive smart products all increased, to 8.7 billion/ 9.4 billion/ 8 billion, respectively, +16%/+15%/+14%/+32% compared with the same period, accounting for 12%/65%/13%/11%, respectively. In terms of profit, gross margin increased 2.1 pct to 8% year on year in 2023, reaching a record high, mainly due to product structure optimization and overall operational efficiency improvement; net profit to mother recorded 4 billion yuan, up 118% year on year, and net profit margin increased 1.4 pct to 3.1% year on year, and profitability improved significantly compared to 2022.
According to the bank, the increase in revenue brought about by the company's acquisition of Jeep was lower than expected, and the bank lowered its profit forecast appropriately. It is estimated that in 2024-2026, the company's revenue will be 1611/1828/1907 billion yuan, with a year-on-year growth rate of 24%/13%/4%; net profit to mother will be 51/61.73 billion yuan, up 27%/19% year-on-year. Considering that the profit from the company's acquisition business is expected to continue to improve, the bank believes that the reasonable market value of the company is HK$79.3 billion, or about HK$35 per share (based on the exchange rate of HKD/RMB on April 8), corresponding to 12x2025EP/E, maintaining a “buy” rating.