BYD's average profit per vehicle fell by about RMB 1,400 in the fourth quarter from the third quarter, mainly due to promotions through discounts and incentives offered to dealers, a team of analysts said.

After non-recurring gains and losses, BYD's net profit is expected to be RMB 8.1 billion to RMB 10.4 billion.

Overall, BYD performed strongly in 2023, SDIC Securities said, adding that the company is expected to see continued high growth in 2024.

BYD continues to make progress at the premium end of the market, with the Denza brand already enjoying initial success and two flagship sedans expected to hit the market in the first half of 2024, the team noted.

Following the Bao 5, the Fang Cheng Bao brand will launch two new models, the Bao 3 and Bao 8, which are expected to make breakthroughs in the off-road NEV market, the team said.

In addition, the Yangwang U9 and U7 are expected to join the U8 in tapping into the luxury car market priced at the RMB 1 million level, the team noted.

"The company's earnings are expected to improve due to the generally better profitability of premium models," the team said.

The team believes the BYD brand is expected to continue to grow in sales and achieve high profitability through scale advantages, while overseas models with significantly higher selling prices and better profitability than domestic models are expected to contribute significantly to earnings.

($1 = RMB 7.1761)

BYD expects profit growth of up to 86.49% in 2023