比亚迪:Expect high growth of NEV in 2H20E_股票频道

BYD aouced its 1H20 results. 1H20 top-lie dropped by 3% YoY to RMB60.5b while NP icreased by 14% YoY to RMB1.7b, implyig 2Q20 bottom-lie recorded a YoY icrease of 120%. We thik 1H20 results were excellet o stroger-tha-expected auto segmet performace ad mask busiess from BYDE. The Compay guided bottom-lie growth of 850%-1017% YoY i 3Q20E, implyig the good mometum to sustai i 2H20. We revised up FY20-22E EPS by 114%/53%/43% to reflect the strog earigs reboud. TP is lifted slightly to RMB113.09. Maitai BUY.

1H20 excellet results. I 1H20, reveue from auto ad related products decreased by 6% YoY to RMB32.0b, whereas reveue from hadset compoets ad assembly services remaied flat at RMB23.3b. GPM from auto ad related products icreased by 0.7ppt to 23.93% while GPM from HCAS busiess icreased by 5.0ppt to 13.6%. Reveue from rechargeable batteries ad photovoltaic icreased 8% YoY to RMB4.8b, whereas reveue from other busiesses decreased by 39% YoY to RMB260m.

Strog 2Q20 results were supported by BYD’s mask busiess uder BYDE (285 HK). It ca be partially cofirmed as the GPM for HCAS icreased by 5ppt. I 1H20, operatig cash iflow was RMB15.5b with a OCF/Core profit ratio of 5.2. Advace receipt of good/service icreased by RMB3.7b compared with the begiig of the year, partially reflectig strog order o had. Oe otable item was that BYD has a total of RMB658m asset impairmet (AR /ivetory/ Itagible asset, etc.). We believe BYD was flashig out all historical burdes uder the disguise of COVID-19, which will provide a healthier balace sheet i the future.

Auto segmet beat our expectatios i 1H20. Give sales volume slashed i 1H20, the auto segmet achieved reveue of RMB32b i 1H20 with a decrease of oly 6% YoY. Eve though sales volume fell by 30.4% YoY i 1H20, the uit reveue icreased by 36% YoY to RMB202K, ad GPM from auto sales also icreased by 0.7ppt YoY to 23.9%. We believe it was maily drive by higher proportio (+2ppt YoY) of CV sales withi the NEV segmet i 1H20, ad that comes from strog NEV bus delivery with higher ASP both i the domestic market ad abroad.