Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>We believe the revenue growth will be slow in 1Q24, but it will still be rapid for the full year 2024.</li>
<li>We also believe the operating margin will hit the historical high in 1Q24, but it will be just stable for the year 2024.</li>
<li>We conclude the stock has an upside of 60% for the year end 2024. Buy.</li>
</ul>


We believe the revenue growth will be slow in 1Q24, but it will still be rapid for the full year 2024.
We also believe the operating margin will hit the historical high in 1Q24, but it will be just stable for the year 2024.
We conclude the stock has an upside of 60% for the year end 2024. Buy.


BYD (1211 HK) 1Q24 Preview: No Concern for Slow Quarter, To Achieve a Strong Year, 60% Upside

<ul>
<li>In March 2024, BYD’s Sales volume increased by 46% YoY and Li Auto’s sales volume increased by 39% YoY.</li>
<li>AliPay announced that foreigners’ consumption amount in China in March was ten times of last year.</li>
<li>Facing stagnancy and competition, Alibaba’s Taobao removed service charges from its retailers.</li>
</ul>


In March 2024, BYD’s Sales volume increased by 46% YoY and Li Auto’s sales volume increased by 39% YoY.
AliPay announced that foreigners’ consumption amount in China in March was ten times of last year.
Facing stagnancy and competition, Alibaba’s Taobao removed service charges from its retailers.


China Consumption Weekly (8 Apr 2024): BYD, Li Auto, Trip.com, Alibaba

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Although BYD’s 4Q23 gross margin narrowed 0.9ppt QoQ, its earnings quality remained high.</li><li>We revise down our FY24E sales volume by 3% to 3.6mn units and net profit by 16% to RMB33.0bn amid stiffer-than-expected competition.</li><li>Nevertheless, we are of the view that BYD’s FY24E earnings could be resilient aided by overseas expansion, more premium products and little financial burden from FY23.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Although BYD’s 4Q23 gross margin narrowed 0.9ppt QoQ, its earnings quality remained high.We revise down our FY24E sales volume by 3% to 3.6mn units and net profit by 16% to RMB33.0bn amid stiffer-than-expected competition.Nevertheless, we are of the view that BYD’s FY24E earnings could be resilient aided by overseas expansion, more premium products and little financial burden from FY23.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BYD (1211 HK) - Good FY23 Earnings Quality

<ul>
<li>Total revenue increase by 42% and automobile revenue increased by 49% in 2023.</li>
<li>The gross margin improved significantly in 2023, especially in 4Q23.</li>
<li>We believe BYD will move its focus from 'low price for sales volume' to 'development of new vehicle models'.</li>
</ul>


Total revenue increase by 42% and automobile revenue increased by 49% in 2023.
The gross margin improved significantly in 2023, especially in 4Q23.
We believe BYD will move its focus from 'low price for sales volume' to 'development of new vehicle models'.


BYD (1211 HK): Strong Revenue in 2023 and to Change Strategy in 2024

<ul>
<li>We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend.</li>
<li>We believe net profit will increase by 100%, higher than the company’s estimate.</li>
<li>We conclude an upside of 54% and a price target of HK$304. Buy.</li>
</ul>


We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend.
We believe net profit will increase by 100%, higher than the company’s estimate.
We conclude an upside of 54% and a price target of HK$304. Buy.


BYD (1211 HK) 2023 Earnings Preview: Strong Top Line and Bottom Line

China

BYD Company Limited, through its subsidiaries, manufactures and sells automobiles. The Company also researches, develops, manufactures and sells batteries, which are applied on mobile phones, cordless phones, power tools and other kinds of portable electronic devices.

BYD (1211 HK)

BYD (1211 HK) 1Q24 Preview: No Concern for Slow Quarter, To Achieve a Strong Year, 60% Upside

We believe the revenue growth will be slow in 1Q24, but it will be still rapid for 2024. Also, the operating will hit the historical high in 1Q24,...

Ming Lu

China Consumption Weekly (8 Apr 2024): BYD, Li Auto, Trip.com, Alibaba

In March 2024, BYD’s Sales volume increased by 46% YoY and Li Auto increased by 39% YoY. AliPay announced foreigners’ consumption amount in China...

Ming Lu

BYD (1211 HK) - Good FY23 Earnings Quality

We believe that investors are likely to prefer EV makers with solid earnings, as they are more likely to withstand the rising competition.

CMB International

BYD (1211 HK): Strong Revenue in 2023 and to Change Strategy in 2024

Total revenue increase by 42% and automobile revenue increased by 49% in 2023. We believe BYD will move its focus from low price to new vehicle...

Ming Lu

BYD (1211 HK) 2023 Earnings Preview: Strong Top Line and Bottom Line

We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend. We also believe net profit will increase by 100%,...

Ming Lu