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- Powering Ahead: BYD’s Record-Breaking 2024 in the EV Fast Lane ⚡🚗
Powering Ahead: BYD’s Record-Breaking 2024 in the EV Fast Lane ⚡🚗
Stay Informed on APAC Finance & Business — All in less than 5 Minutes.
In today’s issue:
Stock Deep-Dive: BYD Company Limited (OTC:BYDDY)
Kia Cuts 2030 Sales Target
Samsung’s Vietnam Bet Faces Tariff Trouble
And more…
Short Finance & Business updates from APAC:
🚗Kia Cuts 2030 Sales Target (3 min read)
Kia has lowered its 2030 global sales target to 4.19 million units, citing macro headwinds and Chinese market struggles. Still, the automaker plans to grow EV offerings from 9 to 15 models and expects eco-friendly vehicles to make up over half its sales by decade’s end. koreatimes.co.kr
📱Samsung’s Vietnam Bet Faces Tariff Trouble (3 min read)
Samsung makes 60% of its phones in Vietnam, but Trump’s proposed 46% tariff on Vietnamese exports could disrupt its global supply chain. Though paused at 10% for now, Samsung may shift production to India or South Korea as Hanoi scrambles to strike a deal—and preserve its manufacturing edge. channelnewsasia.com
🛍️Weaker Yuan Draws Hongkongers to Mainland Malls (3 min read)
As the yuan hits a 19-month low, Hongkongers are flocking to Shenzhen for cheaper goods and services. While great for cross-border shoppers, analysts warn the trend could further weaken Hong Kong’s retail and dining sectors—already struggling from declining tourist spending and China’s expanding consumption stimulus. scmp.com
🚫Tesla Halts US Car Orders in China Amid Trade Tensions (2 min read)
Tesla has stopped taking orders for US-made Model S and X in China as tariffs between Beijing and Washington escalate. The move affects a small share of Tesla’s Chinese sales but underscores its weakening position, with Q1 deliveries down 22% and mounting pressure from local rival BYD. straitstimes.com
Stock Deep-Dive: BYD Company Limited (OTC:BYDDY)
Quick Snapshot
Industry: Auto - Manufacturers
Market Cap: $146 billion
P/E Ratio: 25.6
Revenue Growth (YoY): +29%
Recent Price Movement: +6.94% (last 30 days
Prices as of 11/04/2025
Business Overview & Competitive Advantage
BYD Company Limited is a global leader in green technology, headquartered in China, with a diversified portfolio spanning new energy vehicles (NEVs), rechargeable batteries, handset components and assembly services, photovoltaic systems, and urban rail transportation. The company is widely recognized for its innovation in electrification and intelligent mobility, offering a wide range of electric vehicles—from affordable mass-market models to ultra-luxury performance cars—under multiple sub-brands. With extensive R&D capabilities and a vertically integrated supply chain, BYD plays a critical role in advancing the global energy transition and smart transportation ecosystem.
Revenue Sources:
Automobiles and Related Products (RMB617.4B | 79.45% of total revenue | +27.7% YoY)
Core business segment driven by NEVs across multiple sub-brands:
BYD Brand: Mass market leader with models more affordable than ICE vehicles.
FANGCHENGBAO: Targets off-road and personalized vehicle experiences.
Denza: Premium brand focused on luxury electric vehicles.
Yangwang: High-end, performance-focused models like U8 and U9.
Supported by proprietary technology platforms (e.g., e-Platform 3.0 Evo, DM technology).
Handset Components, Assembly Services & Other Products (RMB159.6B | 20.54% of total revenue | +34.6% YoY)
Offers integrated solutions in consumer electronics and smart devices using AI, 5G, IoT, and precision engineering.
Provides high-end Android components and expanded into AI products (e.g., servers, data centers, 3D printers, AI robots).
Key Growth Drivers:
NEV Boom in China & Globally: Penetration rate of NEVs in China exceeded 50% in H2 2024.
Government Policy Support: Subsidies for trade-ins, rural NEV promotion, and smart infrastructure bolstered demand.
AI & Intelligent Driving Integration: Technologies like God’s Eye (天神之眼) and Integrated Vehicle Intelligence Strategy improve safety, performance, and autonomy.
Global Expansion: Sales presence in 100+ countries; new production hubs in Thailand and Uzbekistan.
Energy Transition Tailwinds: Growth in demand for batteries, energy storage, and PV solutions tied to global decarbonization.
Competitive Moat
Technology Leadership: With over RMB180 billion in cumulative R&D investment and a team of more than 120,000 engineers, BYD has developed proprietary platforms and achieved breakthroughs in fast charging, AI, and hybrid systems.
Brand Diversification: Multi-brand strategy allows BYD to penetrate multiple consumer segments (mass market to ultra-luxury).
Vertical Integration & Scale: By controlling battery production, vehicle assembly, and component manufacturing in-house, BYD achieves better cost control, faster innovation, and consistent product quality.
Global Manufacturing & Distribution: Localized production helps BYD reduce costs and respond quickly to regional demand, while its dedicated Ro-Ro shipping fleet and expanding dealership networks support strong international growth.
Sustainability Positioning: Focus on zero-emission transport, smart cities, and renewable energy aligns with global ESG trends.
Financial Analysis - Fundamentals
Key Financial Metrics
Metric | Value | Industry Average |
Revenue Growth TTM | 29% | 8% |
Net Profit Margin TTM | 5% | 2% |
P/E Ratio TTM | 25.55 | 39.93 |
Return on Equity TTM | 24% | 12% |
Dividend Yield | 1% | 1% |
Debt/Equity Ratio | 20% | 67% |
Prices as of 11/04/2025
Revenue & Profitability Trends
Revenue Growth
BYD has demonstrated robust revenue growth, with sales increasing by 29% year-over-year, significantly outpacing the industry’s 8%.
Over the past five years, BYD has grown revenue at a CAGR of 43%, nearly tripling the industry average of 17%, fueled by surging global demand for NEVs and electronics.
Margins
BYD’s 5-year average gross margin stands at 17%, comfortably above the industry average of 15%, reflecting effective cost control despite ongoing R&D investments.
Its operating margin and net margin, at 5% and 4% respectively, indicate solid profitability amid aggressive growth and expansion.
Financial Strength
BYD maintains a low debt-to-equity ratio of 20%, significantly more conservative than the industry average of 67%, underscoring its prudent financial management.
However, a current ratio of 0.75 suggests tighter short-term liquidity compared to the industry average of 1.56, which may reflect aggressive reinvestment in growth.
On the profitability front, BYD shines with a TTM Return on Equity (ROE) of 24%, well above the industry’s 12%, and a 5-year average ROE of 15%.
Return on Investment (8.78%) also exceeds the industry average (7.05%), although its Return on Assets (ROA) at 3% trails slightly behind the 5% industry benchmark.
Full-Year 2024 Highlights
BYD reported record results across key financial and operational metrics in 2024, driven by strong global demand and sustained innovation in new-energy vehicles.
Group-Level Performance
Revenue: ¥777.1 billion, up +29% YoY
Net Profit: ¥40.25 billion, up +34% YoY
Operating Cash Flow: ¥133.5 billion
Cash Reserves: ¥154.9 billion (includes cash, cash equivalents, and trading financial assets)
R&D Investment: ¥54.2 billion, up +36% YoY
Vehicle Sales
Total Units Sold: 4.27 million, up +41% YoY
Overseas Revenue: ¥221.9 billion
Balance Sheet & Capital Markets
Interest-Bearing Debt: ¥28.58 billion (down from ¥36.55 billion in 2023), representing just 4.9% of total liabilities
Equity Financing: Completed HK$43.5 billion share placement—the largest auto equity refinancing globally in the past decade
Strategic & ESG Milestones
Tax Contribution: ¥51 billion in domestic taxes, exceeding net profit
Supply Chain: Expanded procurement and accelerated supplier payments to strengthen industry partnerships
Technology Leadership: Continued R&D investment supported key innovations including the fifth-gen DM hybrid system, DiSus Intelligent Body Control, and Super e-Platform
BYD closed 2024 with strong financial performance, elevated R&D intensity, and global scale, reinforcing its leadership in the electrified and intelligent vehicle transition.
Valuation Analysis
BYD currently trades with a P/E ratio of 25.55 and a Price-to-Sales ratio of 1.39, based on trailing twelve-month figures. These multiples are lower than the industry averages of 39.93 and 3.05, respectively. This reflects how the market is pricing BYD relative to its peers across similar metrics. Investors often compare such valuation ratios to assess how companies are positioned within their sector, though interpretations may vary depending on individual risk profiles, investment horizons, and broader market conditions.
Valuation Ratios | Company | Industry |
P/E Ratio TTM | 25.55 | 39.93 |
Price to Sales TTM | 1.39 | 3.05 |
Price to Free Cash Flow (TTM) | N/A | 80.46 |
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