See the last page for disclaimer Source: the Company, Guotai Junan International.

Shares in issue (m) 2016F 71,611 2,245 2015F 63,670 1,536 0.954 961 2014F 56,418 0.653 553 2013A0.408 49,768 0.235 12/31 年结 46.1 Year End 39. 59.9 73.7 57. 93.8 579.6 169.3 02 431 81 2012A 44,381 0.035 1,139.7 (94.2) 3 month average vol. 3 (HK$Market cap. m) 52 Weekshigh/low 52 (HK$) z z z z z z 攀上新能源汽车浪潮的顶峰，维持“收集” On TopofNEVWave,Ma 公司报告：比亚迪股份有限公司 Company Report:BYDCompany Ltd. (01211 HK)

合公司和我们的预测。比亚迪的营业收入在 同比提高 车推出和收到手机客户的新订单，公司的汽车、手机部件和二次充电电池的业务收入分别 1 5E .x1P n .x1P. 15PB. and3.1x 14PB 71x 15PE,3.5x 14PE, 115x representing HKD60.00, revise upTPto and “Accumulate” rating we BYD's years. maintain Therefore, thenext3 growth during mainly toitsleadingposition due forNEVsales, as well asrapidearnings HKD60.00. to TP up Revise during 2014-2016. annually 40%-60% expected toincrease is 2014-2016 profit of Net toimprove. isexpected ofBYD gross profitmargins Benef increase rapidlyduring 2014-2016. inpilotcities. Ther and promotingNEVs N removing localprotection,exempting NEVs, includingmainta development of control airpollution, Chinesegover rapidly. increase to expected of is sales, energy profit BYD net ("NEV") vehicle new from rapid Benefit YoY increased 1.0pps to13.8%. of economicscaleandutilization profitmarginofBYD rate,thegross YoY, Duetoimprovement respectively. 7% YoY and increased 12%YoY, 13% re &serviceand handset components automobile, ofBYD’s revenue OEMs, the fromhandset orders and new new cars of fromthelaunch YoY. Benefit 12% in2013,up recovered of BYD Revenue estimates. our and with forecasts BYD’s YoY, in-line increased 5.8x 5.8xYoY,in-line. grew of 2013 Net profit 目标价到 的龙头地位，及其未来三年快速增长的盈利。因此我们维持公司的“收集”评级及上调其 倍 高 2013 上调公司目标价到 收入和毛利率水平都将有所提高，净利润在 因此我们预计 补贴、消除地方保护政策、免除其在限购城市的上牌限制和利用试点城市落实推广计划等。 控制空气污染，政府对新能源汽车的发展给与了大力支持，包括维持对新能源汽车的大力 受惠于新能源汽车快速增长，比亚迪盈利将大幅提高。 15 1.0 年的净利润同比提高 年 个百分点到 (RMBm) PB 60.00 12% Turnover 。 总股数

2014-2016 、 市值 收入 港元，相当于 个月平均成交股数 13% 13.8% 60.00

(HK$ m) (m) 和 周高

7% 。 港元 年中国的新能源汽车销售将大幅增长。受惠于此，比亚迪的营业 / 5.8 Net Profit Profit Net

低 (RMB m) 。由于规模效应和和产能利用率的提高，公司的毛利率同比提 股东净利

。公司的估值远高于其同业，主要由于其在新能源汽车领域

(01211 HK) 115 倍，符合预期。 BYD’s valuation is much higher than its peers, valuationis itspeers, much higherthan BYD’s (‘000) 倍

To reduce the reliance on import energy and reducetherelianceonimportenergy and To 14 年 每股净利 PE 2014-2016 2013 (RMB) nment has strong supports forthe strongsupports nment has efore, we expect China NEVs salestowe ChinaNEVs expect efore, 比亚迪 EVs from the registration restriction restriction the registration EVs from 、 ining generous subsidies for NEVs, subsidiesforNEVs, ining generous EPS 71 iting from these, the revenue and iting fromthese,therevenueand 年有所恢复，同比提高 chargeable batteries business batteries chargeable

倍 nan“cuuae intain “Accumulate” 2013 每股净利变动 The 2013 net profits of BYD 2013netprofitsofBYD The 为了降低国家对能源进口的依赖和 15 年间每年提升 56.950/21.000 年 年的盈利同比提高 ( 115,350.9 PE △ EPS 2,354.1 4,801.8 %) 、

3.5 40%-60% 倍 12% 14

市盈率 年 PER 。受益于新 Major shareholder Free float (%) FY14 Netgearing FY14 14 NAV 14 (x) 5.8 PB 左右。 1.4 23 .9 . 6.1 4.6 0.5 0.3 0.191 0.131 2.3 2.5 16.444 14.927 6 8 026 . 000 00 0.3 0.0 0.000 3.8 10.256 倍，符 和 每股净资产 3.1

(RMB) 年资产净值 355 . 002 02 3.4 2.3 0.2 0.1 0.082 0.050 2.8 3.8 13.565 10.559 BPS 自由流通比率

ore Bloomberg, Source: International.Guotai Junan 大股东 19,000 20,000 21,000 22,000 23,000 24,000 25,000 股价表现 Stock performance 平均股价（港元） Avg. share price(HK$) 相对恒指变动 index %toHS Rel. 绝对变动 Abs. % 股价变动 Change in Share Price

Share price Revised from 6-18m TP 评级： Rating:

(HKD) p-3Jn1 u-3Ot1 e-3Fb1 Apr-14 Feb-14 Dec-13 Oct-13 Aug-13 Jun-13 Apr-13 年净负债

市净率 %

(%) PBR (x)

% / 股东资金 目标价 原目标价 股价：

HSI 每股股息 (RMB) :

(%) (%)

DPS :

1.)3. 126.3 (10.1) 31.0 1 (8.8) 32.5 123.3 054. 35.8 50.5 44.3 个月

1 M [email protected] BYD

Harry Chen Mr. Wang Chuanfu 25.1% 股息率 +86 75523976683 Yield 3 Accumulate (%)

个月 3 M

7 April 2014 2014 7 April

HK$60.00 HK$49.000 收集 Maintained 净资产收益率 Page 1of 17 HK$46.00 陈欢瑜 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00

1 1 Y ( 维持 年 ROE (%)

HK$ 27.8 53.0 62.6

)

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) GTJA Research 国泰君安研究

5.8x YoY, of 2013grew Net profit in-line. Review of 2013 Results See the last page for Page disclaimer 2 Source: the Company, Guotai Junan International. Other expenses/Turnover R&D/Turnover Admin/Turnover Selling/turnover Net profitmargin margin profit Operating Gross profitmargin(%) ratio Financial (RMB) ASP ofvehicle Auto sales(units) data Operating Table-2: Data 2012-2013 BYDin of Operating Ratio of Summary and Financial Source: the Company, Guotai Junan International. Basic EPS(RMB) Net Incomeattr Minority Interest period Profit forthereporting Taxes Expenses EBT profit Operating andlosses Shareofprofits andgains Otherincome Government grants Finance costs Other expenses R&D costs Admin expenses Selling& distribution costs Expenses Gross profit Cost ofSales Automobile Rechargeable Batteries Handsetcomp &service Turnover (RMB mn) fromne orders After2013. the receiving of therevenue sales, impressive Ruireported Su Since BYD of BYD management’s Revenue andourestimates. forecasts Effective tax rate Table-1: BYDin 2012-2013 of Performance Financial of Summary effects itstillhasadverse down, narrowed on margin profit the gross rate, utilization up13%YoY recovered, batteries business and7%YoY, respective

shareholders of parent parent of shareholders of JV ibutable to ibutable 249,066 249,066 51,252 51,252 (20,947) (20,947) 12,765 12,765 24,243 3,296 3,296 2,461 9,017 1H13 0.180 1H13 13.3 13.6 (440) (440) (145) (616) (982) (991) 427 427 109 536 618 707 209 322 0.6 2.5 4.1 4.1 1.8 2.9 (82) (82) (35) of BYD increased 1.0pps increased of BYD YoY Ev 13.8%. to

w ofBYD’s therevenue clients, handset

231,330 231,330 (21,951) (21,951) The 2013 netprofitsThe of 5.8x BYD increased 54,147 54,147 12,526 12,526 10,442 25,525 teoealrsl fBDi 03 ofBYDin2013. result theoverall (1,091) (1,091) (1,021) 0.055 3,574 2,557 (12.1) (12.1) 2H13 2H13 (578) (578) (243) (663) 126 113 240 214 799 247 355 14.0 (13) (13) 26 1.0 2.6 4.3 4.0 0.5 3.1

1H13 YoY% YoY (pps) 2505% 2524% YoY (%) BYD’s automobile business increased stably, increased BYD’s business automobile YoY 12% up in 415% 288% 237% 177% -10% 24.7% BYD recovered in 2013, up 12% YoY up12% 2013, in BYD recovered million. RMB49,768 to 83% 25% 27% 11% 19% 11% 13% 24% 49% 46% (21.4) -4.6% -2% 1H13 1H13 6% 4% 7% (0.2) (0.6) 0.2 0.4 1.7 1.9 1.5 ly, ofscaleand ofeconomic Duetoimprovement in2013.

2H13 YoY% YoY (pps) -214% YoY (%) 160% 120% 28% 93% 18% 42% 15% 10% 20% 11% 99% 94% 63% 13% 30% (29.4) 2H13 2H13 4% 6% 4% 3% 8% 0.9% 5.0% en though the losses of solar business have have of solarbusiness the losses en though (0.3) (0.3)

components & service and rechargeable rechargeable and &service components 0.4 0.2 0.9 0.2 0.5 81 YoYwith in-line million, RMB553 to 0.035 0.035 420,000 420,000 53,693 53,693 (38,680) (38,680) (1,150) (1,150) (2,055) (1,512) 22,551 22,551 17,155 44,381 2012 5,701 4,675 (862) (862) (205) 26.8 12.9 2012 (78) (78) (25) 0.5 2.6 4.6 3.4 0.2 2.2 132 213 291 983 423 550

480,396 480,396 553 52,646 52,646 0.235 2013 13.8 0.8 2.6 4.2 4.0 6.8 1.1 3.0 (42,962) (1,017) (1,279) (2,074) (2,012) 25,291 25,291 19,459 49,768

6,806 5,018 1,441 (388) 2013 (56) (48) 223 776 832 456 677 YoY (pps) YoY (%) 14.5% (20.0) -1.9% YoY % of17 (0.0) (0.5) 580% 580% 264% 186% -28% 69% 52% 98% 23% 18% 89% 11% 33% 20% 11% 12% 13% 12% 0.3 0.6 0.9 0.8 1.0 8% 1% 7%

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 BYD’s sale of vehicle the revenue traditional 2%YoY todecrease isexpected 2014 severecompetition due to toincreas expected ofBYDare sales vehicle result, thetraditional duetothel in2H14 weak pickup 1H14 butslowly in remain BYD’s 2014. We flatin of revenue remain to vehicle the expect sales traditional 4pps nearly of BYDimproved 6-series YoY. 22% increased sales ofS6(SUV) Sincethe time. long relatively 29% dropped YoY. a ofBYDinthefirst was for were majorsalesdrop which2 months by driven launched F3andG6 The F0, 2014. of first2months the though continued down trend slow The Automobiles Business See the last page for Page disclaimer 3 Source: CAAM, Guotai Junan International. Source: CAAM, Guotai Junan International. Source: CAAM, Guotai Junan International. Figure-4: Annual Sales ofBYD3-Series Figure-3:Monthly Sales ofBYD3-Series Source: CAAM, Guotai Junan International. Figure-2: BYD Annual Vehicles Sales, 2008-Jan 2014 Figure-1: BYDMonthly Vehicles Sales, Jan 2011-Jan 2014 units 10,000 20,000 30,000 40,000 50,000

units 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0 0 Jan 08 Jan-11 May 08

Sep 08 May-11 Jan 09 Su Rui Su May 09 Sep-11 volume Sales Sep 09 Jan-12 Jan 10

May 10 May-12 Sep 10 L3

Jan 11 Sep-12 Sales growth(RHS) May 11 Jan-13 Sep 11 G3

Jan 12 May-13 sepce ormi lti 04 in2014. remain flat isexpectedto s May 12 Sep-13

Sep 12 F3 Jan 13 Jan-14 May 13 100% 0% -60% -40% -20% 20% 40% 60% 80% Sep 13

Jan 14 Asa sedan). G5(A+-class (A-classsedan)and ofnewF3 aunch YoY of sales contribution of2014,the first2months the in 100,000 150,000 200,000 250,000 300,000 350,000 50,000 e 3%YoY in ASP sales The vehicles in2014. oftraditional and increased discount for its face-out models. Therefore, forits face-outmodels.Therefore, discount increased and

100,000 100,000 units 200,000 300,000 400,000 500,000 600,000 units 0 0 0720 0921 0121 03Jan- 2013 2012 2011 2010 2009 2008 2007 Vehicle of BYDinthefirst2months2014 sales

2008

Su Su Rui 2009 PV Sales

2010 Weof BYD vehiclesales expectthe

2011 L3

2012

G3 2013 Growth Sales F3 Jan-Feb 13 Feb 13 Jan-Feb 14 Feb 14 0% of17 120% 160% 200% 40% 80% -40% Jan-

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 06 New model and 2016 New model and 2015 Additional Additional model New model and 2014

See the last page for Page disclaimer 4 Source: the Company, Guotai Junan International. Source: CAAM, Guotai Junan International. New model and 2013 Year Table-3 Plan Model :Summary New of Source: CAAM, Guotai Junan International. Source: CAAM, Guotai Junan International. 6-series) and 3-series VehicleFigure-7: BY Salesof Source: CAAM, Guotai Junan International. Figure-6: Annual Sales ofBYD6-Series Figure-5: Monthly Sales ofBYD6-Series 100,000 200,000 300,000 400,000 500,000 600,000

Fclf F A00-class F0 Facelift units 10,000 15,000 20,000 25,000 5,000 units 0 0 new generation new generation diinlmdl 6 .TMdo 03na No n.a. Yes 103,900-153,900 Midof2013 1Q13 2.0T MPV new generation M6 Facelift S6 model Additional Type of Renew Type of Renew new generation

0720 0921 0121 03Jan- 2013 2012 2011 2010 2009 2008 2007 Jan 08 May 08 Sep 08

Jan 09 Rui Si May 09 6 series Sep 09 Jan 10 S6 May 10 3 series Ming( Han( Si Rui( e 3 -ls ea p-4n.a. No Apr-14 n.a. n.a. n.a. A-classSedan n.a. No 42,900-46,900 Tang( G5 A+-class 4Q13 Midof2013 New F3 Sep-14 4Q13 M3 Small n.a. No 115,800-179,800 Yes EV S7 Mid-size 4Q14 4Q14 Sedan 1.2T L3 AMT F0 S3 Compact n.a. MPV GolfEV Denza SUV SUV Si Rui( Qing( Model Name Name Model Sep 10 D (Classified into 0-series, into D (Classified 汉

Jan 11 G6 秦 明 唐 思锐 思锐 ) 0 series )

) May 11 ) Sep 11 ) )

Jan 12 M6 May 12 Sep 12 F6 -ls ea a-313901090 Yes 103,900-150,900 Mar-13 B-class Sedan Feb 13 A-class PHEV HVSdnna n.a. n.a. PHEV Sedan HVSdnna n.a. n.a. PHEV Sedan

Vehicle Type Vehicle Jan 13

HVSVEdo 04n.a. of2014 End PHEV SUV May 13 Feb 14 Jan- Sep 13 Sedan Sedan Jan 14 .Tna n.a. n.a. 2.0T 3-series and 6-series) 6-series) and 3-series 0-series, Mixof into Product BYD (Classified Figure-8: 100,000 120,000 140,000 160,000 20,000 40,000 60,000 80,000 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% units 0% Date ofLaunch 0 0720 0921 0121 03Jan- 2013 2012 2011 2010 2009 2008 2007 0720 0921 0121 03Jan- 2013 2012 2011 2010 2009 2008 2007 Dec-13 189,800-209,800 Postponed 189,800-209,800 Dec-13 ..n.a. n.a. 6 series Si Rui Si Retail Price(RMB) Retail Price(RMB) M6 3 series

S6 G6 0 series Delivery or Delivery not F6 Feb 13 Feb 13 Feb 14 Feb 14 Jan- of17 Jan-

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 capt and awareness fromrisingbrand benefit world.t inthe Even countries transportsyst intheirpublic e6 world K9and touse the butalsosigned etc., andBulgaria Angel Los including overseas, business. its potential tocapture theBYD promoted EVsaround world CV and PV) Figure-9: New Energy Vehicl government’s subsidies. months of 2014, muchfaster months of2014, t wereunits morethanhalfof which inthefirst2monthsof 2014 2014. of first the in 2 months expected fasterthan Qin grew salesof The protectionism. due tolocal mainly for8%account oftotal new energy sale in2013.The PVsales oftotal30% electric fornearly toaccounted K9 areestimated units, units, F3DM, 1,550units units 142 BYD sold1,005 and434 of fromAprilto September postponed been EV ofBYD.The oftotal 0.7% foronly sales accounting 2013, However, 1%YoY in 2013. BYDdropped of EVsales unit 3,131 to supportingnew policies and local proection. YoY 1% BYDdecreased of vehicle (“EV”)sales Eletrci 3, to See the last page for Page disclaimer 5 Source: the Company, Guotai Junan International. Source: the Company, Guotai Junan International. Source: CATRAC, Guotai Junan International. Overseas Coverage BYDNEVSales Figure-12: Figure-11: China in Coverage BYDNEVSales Source: CATRAC, Guotai Junan International. 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 unit 0 新疆

西藏 Jan 12

Mar 12 Sales Growth for CV for Growth Sales CV New engergy

青海 May 12 甘肃 Jul 12 云南 Sep 12 四川 内蒙古 贵州 宁夏 Nov 12 陕西 广西 hough mostoftheseNEVshipments us aremainly hough 海南

Jan 13 han ourforecasts, duetoits powerf sporty desgin, 湖南 e Production(Classifiedin 湖北 山西 河南

广东 Mar 13 河北 江西 安徽 山东 May 13 Sales Growth for PV for Growth Sales PV New Energy 江苏 福建 浙江

辽宁 Jul 13 in 2013. Therefore, thesa in 2013. Therefore, 吉林

黑龙江 Sep 13 rn oeta uiesopruiis opportunities. business potential uring

Nov 13 YoY 37.9% increased China CAAM,EVsalesin According to units to17,642

Jan 14 -200% -100% 100% 200% 300% 400% 500% 600% 700% 800% 900% 0% em. Currently, or 30 cities BYD’snearly covered NEVnetwork sales of BYD relied on government’s support heavly, government’s on support relied salesofBYD which have bus sales in China while new energy PV sales of BYD may only only salesofBYDmay PV whileenergy new China in bus sales 131 units in 2013, lower than expected due to the delay of delayof the to due expected than 131 units 2013,lower in EV+PHEV andHEV) EnergyFigure-10: New Vehicl s ofBYD’s share new low energy PVhasrelatively market up agreements with more than 25 cities or countries around around countries or cities withthan 25 more agreements up 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 thesalesin2013.BYDsold911 units ofQininthefirst 2 unit s, completing only 39% of its sales target of 8,000 units ofits in salestarget39% of8,000 only s, completing Qing, e6 and K9 in 2013, repsectively.2013, Qing, K9in e6 and salesofBYD’s The 0 les of the NEVmakershavebeenaffected significantly.

Jan 12

Mar 12 Sales Growth for EV+PHEV for Growth Sales EV+PHEV engergy New EV sales of BYD increased 390% YoY 390% ofBYD increased EV sales to1,871 BYD not only set up NEV production plants in plants in production upNEV set only BYD not May 12 ul acceleration and attractivepriceafter and the acceleration ul ed for trial in these cities, BYD still able to cities,BYD stillableto ed fortrialinthese Jul 12

Sep 12

Nov 12

Jan 13 e Production(Classifiedin Mar 13

May 13 HEV for Growth Sales HEV New Energy

Jul 13

Sep 13

Nov 13

Jan 14 -200% 200% 400% 600% 800% 0% 1000% of17

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 units in2018. more than100,000 BYD we As aresult, expected we str in China. Therefore, inU.S. of NEVs adoption of the coverage ofTe Tianjin, hotsales Guanghzou, The andHangzhou. Guiyang th butalsoexempted NEVs, forqualified subsidies geneous gave out Inaddition, oflocalprotectionism. fortherevomal corner stone restriction. Ther with limited toregister vehicles new energy Shanghai and Beijing of2014. thebeiginning in Shanghai and Beijing removed to gradually.be areexpected local protection of barriers The ore h opn,Goa ua nentoa. Source: the Company, Guotai Junan International. See the last page for Page disclaimer 6 Source: the Company, Guotai Junan International. Source: CAAM, Guotai Junan International. Business Figure-15: Revenue Growth of BYD’sAutomobile Source: CAAM, Guotai Junan International. VehicleEnergy New Figure-13: BYD Sales of targets topromotea which expected is down airpolution. and cut energy imported the risksofrelying government the since 2010-2012 in that than stronger are much government’s supportandincreaseofpublicawareness. the to due segment private and public both in up speed to expected are years next5 the of China EV salesin govern oflocal funding can usethe orderfrom more BYDtoreceive willhelp onlyexpansion not methods be ar will theinvestment In thesecities, Xi’an,Changsha, Shenzhen, plants, including up theproduction BYD of2013, taxi. December and bus Uptill energy new produce RMB mn units 1,000 1,000 1,500 2,000 2,500 3,000 3,500 10,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 5,000 5,000 500 0 0 2009 2010 2011 2012 2013 Jan-Feb Jan-Feb 2013 2012 2011 2010 2009 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 NEV Sales Auto RevAuto ongly believe that the EV sales in China will speed up in the next 5 years and reach annual sales of sales annual 5years andreach will upinthenext speed thattheEVsalesinChina believe ongly etfrpouto xaso. expansion. forproduction ment Sales Growth(RHS) Sales uoRv Growth RevAuto ound RMB50 billion to set up the produciton capacity no less than 300,000 units. 300,000 Such lessthan capacity no produciton tosetupthe billion RMB50 ound total of350k units 2013-20 ofNEVsduring and in China which has significant effects on the public awarness of adopting NEVs ofadopting awarness effects significant public which has onthe China in and 13 Jan-Feb Jan-Feb 14 0% 200% 400% 600% 800% -200% 1000% 0% 5% -5% 10% 15% 20% 25% -10% efore, thebreakthrou The willingness and supports of the government in 2013-2015 2013-2015 in ofthegovernment andsupports willingness The Therefore, nearly 80 pilot cities in China adopted aggressive aggressive adopted citiesinChina 80pilot nearly Therefore, Tianjin, Kunming, Wuhan, Nanjing, Zengcheng and Chengdu. Tianjin, andChengdu. Zengcheng Wuhan, Nanjing, Kunming, Sales Figure-16: Sales andContribution Revenue ofBYDNEV VehicleEnergy New Figure-14: BYD Sales of osl oa f7,0 nt fEsdrn 0421. unitsto sellatotal 2014-2016. ofEVsduring of71,000 BYD actively established the established BYDactively is well awared of the urgenc ofthe well awared is has already signed the agreement with 9 large cities to set to set with cities 9large agreement the signed hasalready 1,000 1,500 2,000 2,500 3,000 3,500 4,000 sla and its entry to China has also increased the media media the increased also has itsChina sla and entry to 100% 500 units 10% 20% 30% 40% 50% 60% 70% 80% 90% e NEVs from the vehicle restriction in Beijing, Shanghai, Shanghai, inBeijing, fromthevehiclerestriction e NEVs different prevent citiesand 0% 0 are the major cities of vehicles sales which also allow allow which also ofvehiclessales themajorcities are eeu fNV Sales NEVRevenue of 0921 0121 03Jan-Feb 2013 2012 2011 2010 2009 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 EVs of BYD have recieved the sales approval in in EVs ofBYDhave thesalesapproval recieved Qin gh in these 2 cities can be considered a a considered be can these2cities gh in 15. In addition, the government not only only not thegovernment 15. Inaddition, K9 y of promoting NEVs to reduce NEVs y of to reduce promoting Revenue Traditionalof Vehicle Sales JVs with to JVs localgovernment local protectionism, but also butalso protectionism, local

e6

F3DM 13 Jan-Feb of17 14

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 Fi Figure-17: Global Handset Shipment and Growth ofBYD’s 2014-2016. shipment flatduring remain clients major isexpectedto mark their though same asthatof2012even ofcompetitivesmar due tolacking rapidly down decrease, to share ofBYD’s continued majorclients outperf Lenovo and Huawei HTC, Samsung, BYD’s of shipment Handset clients major 3 flatinthe next toremain years. isestimated 2014-2016. during 2%-3% toaround shipments areexpected handsets result, global Since feature phones may be replaced by sm replaced may be Since featurephones of smartph mature,thegrowth isgetting market smartphone YoY 38.5% increased smartphone to1,0 fo strongdemand by the was driven mainly shipment handset ( Data Corporation 2014-2016. during 2%-3% increase to is expected shipment handset global of growth The Handset Components and Assem in2016. 30% morethan toreach isexpected business BYD’sof NEVsalesin contribution automobile tobec ofNEVsalesisexpected the revenue ASP due tohigher was estimates, which onour ofits mainly busK9.Based electric 3% ofBYD’s business nearly automobile inte the salesofBYDNEVsonlyfor0.7%in2013 accounted 2016. salesin automobile 30% of than more reach to isexpected BYDNEVsales of contribution Revenue See the last page for Page disclaimer 7 Source: IDCForecasts, Guotai Junan International. BYD’s of Shares Market Clients Major Figure-20: in Figure-19: Market Share of Major Handset OEM Source: IDCForecasts, Guotai Junan International. 10% 20% 30% 40% 50% 60% 70% 80% 0% mn units 1,000 1,500 2,000 2,500 500 500 0 39% 17% 2% 8% 4% 2008 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 ZTE 37% 21% 5% 3% 5% 2009 Huawei Global Handset Shipment 33% 22% 2% “ 3% 4% 2010 YoY 4.8% increased shipment handset global IDC”), to HTC 24% 22% 3% 2% 3% 2011 Samsung 19% 24% 2% 4% 3% 2012 17% 25% 1% 3% 3% 3% 2013 Motorola Motorola Shipment Growth tphones. In 2013, total handset shipment ofBYD’s In2013,total shipment tphones. nearly the remained handset majorclients 14% 29% 1% 2% 4% 3% ble Services Business (“HC&S”) ble Services

2014F After total shipment. the for55.1%of handset units, accounting 04.2 million ome the major growth driver forBYDduring ome themajorgrowth driver et share dropped 2.2pps YoYet sharedropped to 51.1%in ormed the others, including Nokia, Moto Nokia, others, including ormed the artphone gradually,artphone thesale 13% 32% 1% 4% 4% 2% 2015F Nokia 12% 33% 1% 2% 4% 4% 2016F 10% 15% 20% 25% -5% 0% 5%

one shipments is expected to drop continuously during 2014-2016. 2014-2016. during todropcontinuously isexpected one shipments 21pps during 2008-2013 since handset sales of Nokia dropped dropped ofNokia sales handset since 2008-2013 21pps during rms of volume, revenue contribution of NEV sales accounted for ofNEVsalesaccounted rms ofvolume,revenuecontribution Source: IDCForecasts, Guotai Junan International. Source: IDCForecasts, Guotai Junan International. Global Handset Production r smartphones. Despite a slower growth, sales of global global salesof growth, aslower Despite r smartphones. mn units mn units gure-18: Global Smartphone Shipment and Growth 1,000 1,200 1,400 1,600 1,000 1,200 1,400 200 400 600 800 200 400 600 800 0 0 s of feature phones mays offeaturephones cont 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008

2008 of growth rapid The 2013. units in million 1,821.8 Global Smartphone Shipment ZTE 2009

Huawei 2013. Based on our estimates, handset estimates,handset our Basedon 2013.

2010 market The etcin2013. ZTE and rola the next 3 years. years. 3 the next As aresult,revenue

2011 HTC Among BYD’s Among clients, major 2012 Samsung According toInternational inue to decrease. As a todecrease.Asa inue

2013 Shipment Growth

Motorola Motorola 2014F Even though Even though 2015F Nokia

2016F of17 10% 20% 30% 40% 50% 60% 70% 80% 0%

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 expandedhas notonly themarketshares andHP. fromHTC obtained theorders successfully t Inaddition, YoY13% increased HC&S business to due was mainly which its stably. BYDtoincrease help We business to orders HC&S new of revenue the expect 2014-2016. market during stable growth. Therefore, relatively which isstillconsidered westrong growth, expect thetablet marketto slow down shipments tablet global increas toIDC, momentum. According HP expanded Slate7.Ithassuccessfully its scopeof busi orders fromHPwith BYDoffered inlargevolumes. shipments oftablet stable the 2014-2016. from tobenefit growth marketduring BYD isexpected See the last page for Page disclaimer 8 Source: the Company, Guotai Junan International. Source: IDCForecats, Guotai Junan International. Forecasts Business Revenue BYDHC&S of Figure-22: Tablet Global Figure-21: Growth Salesand stably 2014-2016. to increase during ofBYD’s revenue we expect business HC&S profitabilityof theBYD.We BYDtoexpand expect its marketfurt

100 150 mn 200 unit 250 300 350 400 50 0 0121 0321F21F2016F 2015F 2014F 2013 2012 2011 PC Shipment Growth Shipment PC Tablet Shipment Growth Tablet Shipment , but also has directly improved t butalsohas improved directly, -50% 50% 100% 150% 200% 250% 300% 0% and increase 19% YoY, and increase 15%YoY and11% YoY 2014-2016 during we BYDtobenefitfromthestable tablet growth of expected Electronic Manufacturing Services Manufacturing Electronic ness and increased its market share, bringing new growth growth new bringing its increased ness and marketshare, he technology of plastics-and-metal hybrid technology (“PMH”) (“PMH”) technology ofplastics-and-metal hybrid he technology ed 51.6% YoY 51.6% ed units 2013.Afteryears of million in to217.1 .the contribution of new clients and new products. BYD has BYDhas newclientsproducts. ofnew and .the contribution her and receive new orders from the new clients. fromthenew Asaresult, orders new her andreceive RMB m n 10,000 15,000 20,000 25,000 5,000 0 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 he product mix of handset components and components and mixofhandset he product Handset Components Rev Components Handset In 2013, BYD has obtained tabletobtained has BYD In 2013, In 2013, the revenue of BYD’s of therevenue In 2013, (“EMS”) for the production of (“EMS”)for of the production

Growth of17 -20% -10% 10% 20% 30% 40% 50% 0%

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 batteries thedominant becoming 2000-2012, of ma 80% than formore accounted batteries Li-ion 2000-2012. ba ofLi-ion Sales batteries. ofLi-ion demand by the driven lead rechargeable (excluding market Avicenne, rechargeable market. rechargeable of growth the boosted and rechargeable popular most the became batteries Li-ion Business Energy and New Batteries Rechargeable See the last page for Page disclaimer 9 Source: Avicenne, GuotaiJunan International. Source: Avicenne, GuotaiJunan International. nickel-cadmium. In addition, Li-ion is a low maintenance batte Li-ionisalowmaintenance Inaddition, nickel-cadmium. andHP BYD’sHTC expected to help batteriessa is handset salesofBYD’sexpect thehandset majorclie forhandsets, tablets,batteries sales lapt therev batteries business. Therefore, inits rechargeable assales berecorded will not and sales internal which isconsidered batteries itsproduction own EV Handset batteries salesexpected ofBYD are 6%-8% togrow annually inthe nextyears.3 isex ofLi-ionbatteries growth momentum el inconsumer batteries Li-ion grew fasterthan storage power YoY, 100%YoY YoY and87% respectively, in2013, whichsuggest in consumer batteries sales toAvicenne, Li-ion According surgedafter power storage batteries intransportation the and Li-ion of adoption the since 2010-2013 during decreased but gradually 2010 in shipment batteries Li-ion of global for 80% storage. as intransportationpower The and Currently, elec widely inconsumer were adopted batteries Li-ion Growth drivers ofLi-ion batteriessales shifted fromconsum 2000-2012 During Batteries Rechargeable Figure-23: Sales and Growth of Global Major 44.9% up 2013, in togrow rapidly batteries continued grow mu ofLi-ionbatteries drive thesales with incomparingwhenT disposed little harm Ni-CDbatteries. well lithium-ion making comparedthan half tonickel-cadmium, to prolon is required cycling scheduled no and isnomemory There mn kWh 10 15 20 25 30 35 40 45 0 5 12.8% oa iinNM iDOthers NiCD NiMH Li-ion Total 25.5% 2000 1.4% 2012 -4.0% enue of BYD’s rechargeable batteries business is mainly generated by rechargeable by rechargeable generated mainly is business of BYD’s batteries enue rechargeable op, power tools, powerop, power station solar and etdt otnei h et3yas 3years. inthenext tocontinue pected ch fasters, especially in the area ofv thearea in fasters,especially ch sales contribution by the Li-ion batteries by Li-ion the sales contribution nts years. toremainflatinthenext3 sources. The energy density of Li-ion ofLi-ion density energy sources. The 38.5% CAGR YYt 53mlinkh codn oRa-i YoY toReal-Li. according kWh, 55.3million to -10% 10% 20% 30% 40% 50% 0% electric products, transportation and power storage increased 26% 26% increased storage power products,and transportationelectric tteries grew at the CAGR of 25.5% to 32.34million kWh during the the during kWh 32.34million to of 25.5% at theCAGR tteries grew e oices %8 nulyi h et3yas years. 3 next inthe annually 6%-8% les toincrease acid batteries) increased 3x during 2000-2012 which was mainly waswhich mainly 2000-2012 during 3x increased batteries) acid technologies became mature and production continued todrop. continued andproduction becamemature technologies he price drop and improved safety level of Li-ion batteries will will ofLi-ionbatteries safety level he pricedropandimproved suited for modern fuel gauge applications. Li-ion cells cause cause Li-ioncells applications. fuelgauge modern for suited Market During 2000-2012 2000-2012 During Market Figure-24: Change ofProduct Structureof Rechargeable ry, anadvantage thatmostot er electric products to transportation and power storage. tric products, such as handset, suchashandset, tric products, ectric products. According to the estimates of Real-Li, the the ofReal-Li, estimates tothe ectric products. According rket share of rechargeable batteries, up near 60pps during 60ppsduring near up batteries, ofrechargeable rket share ed that the demand of Li-ion batteries intransportation and batteries Li-ion of thedemand ed that Li-ion g the battery's life. In additio life. In battery's g the NiMH 2000 NiCD ehicle power batteries. The sales of Li-ion salesofLi-ion The batteries. power ehicle However, inSamsung, higherpenetration modules etc. Based on our estimates, we etc.Basedonourestimates, modules in consumer electric products accounted products accounted electric in consumer Others is typically twice thatofthestandard twice is typically her chemistries cannot claim. her chemistriescannot laptop and tablet etc, as well well tablet etc,as and laptop n, the self-discharge is less less is n, theself-discharge Li-ion BYD only provides power power provides BYDonly

NiMH 2012 NiCD According toAccording Others of17

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014

See the last page for Page disclaimer 1 Source: EPIA,HIS forecasts, Guotai Junan International. 2003=100) (Jan Power PriceIndex Solar Global Figure-28: InstallationPower ForecastsSolar Global Figure-27: 2014-2016. during 8-10% toincrease business solar and batteries ofrechargeable estimates onthesales 2014-2016. during 8-10% to increase isexpected business BYD’s of batteries Revenue rechargeable years. 3 next inthe gradually toincrease business Source: Avicenne, GuotaiJunan International. net andmarketing sales global highly-effective now established developer project and suppliers module leading by driven 2014, stable. relatively remained ofsolarmodule while that year the marketsfast-growing nations.Av inthose tariffs. feed-in bydriven Asian Despite Photovoltaic Industry European so global (“EPIA”), Association 17% YoY grow to installation isexpected 2013and solarpower in Global recovered 2014. in 43GW to GuotaiSource:Real-Li, Junan International. Figure-26: Market Share ofDifferent Li-on Batteries Figure-25: Rapid Growth of Li-on Batteries

RMB m n mn kWh 100 120 140 10,000 20,000 30,000 40,000 50,000 60,000 20 40 60 80 0 0 23.5% 0121 0321F2015F 2014F 2013 2012 2011 2007 GlobalLi-on Batteries Sales

2008 Global Solar Power Newly Installation 43.3% 2009

2010 44.9% 2011

2012 24% 49.3%

2013 tariffs led Japan feed-in and have inChina inEurope, support political in a decline Growth(RHS) erage price of wafer, priceof erage and cell poly-silicon 18% 2014F 15% 2015F 60.9% Growth 13% 2016F 10% 20% 30% 40% 50% 60% 70% 120% 160% 200% 0% 0% -40% 40% 80% modules, we expect the revenue of BYD rechargeable batteries batteries ofBYDrechargeable weexpect therevenue modules, We expect global solar power to increase 17%YoY toincrease We power solar expectglobal in to43GW lar power installation recovered, up 24% YoY up24% recovered, installation lar power in2013, to37GW Source: PVInsights.com, Guotai Junan International. works. As a result, we expected the revenue ofBYD’sworks. we As therevenue solar a result, expected s that returned to profitability during 2013, and which have which have and 2013, during profitability to returned s that Jan Jan 2013=100 100% 100 110 120 130 140 150 160 10% 20% 30% 40% 50% 60% 70% 80% 90% 80 90 0% Consumer Electric Product Electric Consumer Jan-13

Feb-13 2015F 2014F 2013 2012 2011

Mar-13

Apr-13 increased 5%-10% from the beginning of fromthebeginning 5%-10% increased Wafer May-13

Jun-13

Jul-13 Transportation Polysilicon Aug-13

Sep-13

Oct-13

Industrial and Storage and Industrial Nov-13 Cell

Dec-13 on the Based According to to According Jan-14

Feb-14 Module 0 of17 Mar-14 to

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 World the Battery Salesin of BYD Li-on MarketShare Figure-29: ore h opn,Goa ua nentoa. Source: the Company, Guotai Junan International. See the last page for Page disclaimer 1 Source: the Company, Guotai Junan International. Business Different Figure-31: Revenue Revenue ofBYD’s and Growth Financial Analysis Source: PVInsights.com, Guotai Junan International. respectively. profitc gross and Revenue ofBYDis estimatedto profit gross and the revenue while thegrossprofitmarginsofHC mix busi gross profitmarginofautomobile grossprofit the since margin profit overall itswill BYD’s also improve boost but only ofNEVsaleswill growth, not revenue salesgrowth estimates, rapid our Based on Robust revenue growth and better gross profit margins are mainly due to rapid growth ofNEV sales in2014-2016. comparable base, as well as gradually growth of revenue, impr ofrevenue, growth well comparable as asgradually base, we profitofBYD expectour estimates, net toincreaserapi tolosses inits solar due in1Q14 87%-96% todecrease expected 2014-2016. during rapidly increase to of BYD isexpected Net profit of 2016. year end the in 72% 59% and eil ae n rae-hnepce ossi Y’ oa uies inBYD’s losses solarbusiness. greater-than-expected and sales vehicle costs. We revise down its estimatesfromourprev earnings 10.0% 12.0%

RMB mn 0.0% 2.0% 4.0% 6.0% 8.0% 10,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 5,000 5,000 0 0520 0720 0921 0121 2013 2012 2011 2010 2009 2008 2007 2006 2005 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 Rechargeable BatteriesRev Growth RevAuto Rev Components Handset

Auto RevAuto Growth Growth Rev Components Handset Rechargeable Batteries Rev ness to increase gradually due to economies due toeconomies gradually toincrease ness ontribution of BYD’s automobile business are ofBYD’s business ontribution automobile &S and rechargeable batteries business are expected to remain stable. As a result, stable. toremain Asaresult, areexpected business batteries &S andrechargeable margins of its NEVs are much higher than its traditional vehicles. We the vehicles. its expect than traditional higher ofits aremuch NEVs margins 40% 80% -40% 0% 120% 160% increase 12%-13% YoY 12%-13% increase YoY 17%-20% and 2014-2016, during ious forecasts due to worse than expected growth of traditional forecasts growth oftraditional worseious thanexpected dueto dly during 2014-2016, up 40%-60%, mainly due to relatively torelatively due mainly 40%-60%, up 2014-2016, during dly ovement of gross profit margin ofgrossprofitmargin ovement Source: the Company, Guotai Junan International. Batteries and New Energy Business Business Energy New and Batteries Figure-30: Revenue Growth of BYD’s Rechargeable Business Business Figure-32: Revenue Contribution of BYD’s Different 100% 10% 20% 30% 40% 50% 60% 70% 80% 90%

business and sales drop of its traditional vehicle. Base on on Base ofits drop vehicle. andsales traditional business RMB mn 0% 2,000 2,000 4,000 6,000 8,000 0 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 Rechargeable Batteries Rev 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 Rechargable batteries According toBYD’sAccording forecasts, its are earnings of scale and the im of scaleand expected to improve gradually, toimprove expected reaching and slower growth of financial growth offinancial and slower Rechargeable Batteries Rev Growth HC&AS

provement ofproduct provement Auto 1 of17 0% 10% 20% -40% -30% -20% -10%

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 Business of Profit BYD’sMargins Gross Figure-33: Different ore h opn,Goa ua nentoa. Source: the Company, Guotai Junan International. See the last page for Page disclaimer 1 Source: the Company, Guotai Junan International. Source: the Company, Guotai Junan International. BYD Figure-37: Operating Profit and Operating ProfitMargin of Source: the Company, Guotai Junan International. Source: the Company, Guotai Junan International. R&D CostandOtherExpensesofBYD Figure-35: SellingExpenses, Source: the Company, Guotai Junan International. 10% 15% 20% 25% 30% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 5% RMB mn RMB 1,000 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 500 Other Expenses Revenue Ratio to Sellingcost Revenue to Ratio 19.5% 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 0 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 GPM of Auto of GPM 4.4% 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 21.7% 10.3% 17.7% Operating Profit GPM Rechargeable of Batteries 5.4% 14.8% 2.6% 0.5% 11.6% Administration Expenses 1.5% R&D Costto Reveue Ratio AdminitrationCost to Revenue Ratio 13.7% 3.0% Operating Profit Margin GPM of HC&AS GPM of 14.4% 3.7% 15.0% 4.6% GPM 10% 12% 0% 2% 4% 6% 8% 15.6% iue3:GosPoi fBDsDfeetBsns of BYD’s Profit Gross Figure-34: Business Different Figure-38: Net Profitand Net ProfitMargins ofBYD Figure-36: Gearing Ratio of BYD RMB mn RMB 100% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 0% 1,000 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 500 0 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 2006 3.8% 0820 0021 0221 04 05 2016F 2015F 2014F 2013 2012 2011 2010 2009 2008 75% Rechargable batteries

9.6% 2007 28%

2008 58% 5.4% Net Profit 2009 8% 3.0% 60%

2010 0.2%

2011 66% 1.1% HC&AS 64% 2012

1.7% 86% Net Profit Margin 2013 2.4% 63% 2014F Auto 3.1% 52% 2015F 2 of17 10% 12% 0% 2% 4% 6% 8% 2016F 46%

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 1 5E .x1P n .x1P. 3.1x 15PB. 14PBand 15PE,3.5x 71x Weitsof BYDand rating. maintain view “Accumulate” positive of Tesla entry promotion, forNEV support sales NEVs rapid and thene growth during earnings rapid wellas as sales, forNEV its position to leading due lower.while its PBis forward ismainly forBYD average valuation Higher PB 3.3xforward forward PEand traded at24.3x 11.8x and BYD’s 15PB. PE 1.5x forward 14PB and 2.2x 15PE, weighted 2.5x15PB.Basedonthe 14PB and Revise upTP toHKD60.00 andmaintain “Accumulate”rating. Valuation See the last page for Page disclaimer 1 Source: Bloomberg, Guotai Junan International. Source: Bloomberg, Guotai Junan International. Figure-40: BYDForward PBBand Figure-39: BYDForward PE Band Source: Bloomberg, Guotai Junan International. Valuation BYD’s and w.a. Segment Business Different of Valuation the of Summary Table-4: 100 120 140 BYD valuation based on our estimates estimates onour based BYD valuation valuation Industry W.A. Assembly Services Components& Handset Segment Battery Traditional Auto Segment 20 40 60 80 0

Jan 05 (X)

PE (2015F) PE band Jul 05

Dec 05

Jun 06

Nov 06

May 07

Oct 07

May 09 PE (historical high) (historical PE mean) (historical PE Sep 08

Mar 09 BYD BYD Aug 09 Segment (%) byGross ProfitContributed Business xt the3yearsasresultofr

Feb 10

Jul 10 2014F 25.7 66.3

Jan 11 8.0

Jun 11 PE (historical low) (historical PE PE (2014F) average valuation, thecomparable HK valuation, average

Dec 11 in thepast years. BYD’s7 Therefore, May 12 2015F Nov 12 23.3 69.1

Apr 13 7.6

Oct 13

Mar 14 apid sales growth ofitsapid salesgrowth NEVs.We expectnews ofgovernment’s

also revise up its TP to HKD60.00, representing 115x upitsalso revise TP representing toHKD60.00, 14PE, growth during 2014 to boost BYD’s valuation. Therefore, we we BYD’s boost Therefore, to 2014 valuation. during growth 2016F PB are much higher than its peers. On average, BYD was was BYD thanits Onaverage, peers. muchhigher PB are 10 12 14 20.9 71.9 0 2 4 6 8 BYD is currently trading at BYD is currently trading 7.1

Jan 05 (X)

PB (2014F) PB band Jul 05

Dec 05 14PE

93.8 14.4 31.2 15.6 11.9 11.9 Jun 06

Nov 06

May 07 at14.4x 14PE, ofBYDarevalued peers

15PE 57.8 23.0 13.4 10.0 11.8 11.8

Oct 07 thanitsforward PEishigher historical

May 09 PB (historical high) (historical PB mean) (historical PB Sep 08

16PE 16PE 39.6 15.4 12.0 Mar 09 2.8x 57.8x15PE, 93.8x 14PE,

BYD BYD 9.9 8.8 Aug 09

Feb 10

Jul 10 14PB

Jan 11 2.8 2.2 6.5 2.6 1.6

Jun 11 PB (historical low) (historical PB PB (2013F)

Dec 11 15PB

May 12 2.5 1.5 4.9 0.9 1.4

Nov 12

Apr 13 3 of17

16PB

Oct 13 2.3 1.3 3.5 0.8 1.2 Mar 14

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 Table-5: of Peers Automobile Sector See the last page for Page disclaimer 1 Source: Bloomberg, Guotai Junan International. ipeAeae Average INR Global Weighted Average TATAIN SEK Global Simple EUR EUR Weighted Average SEK SS SCVB EUR Simple Average RNO FP MANGR VOLVB SS Tata Steel Ltd EUR DAIGRScania Ab-B Shs Volvo Ab-B Shs EUR Renault Sa USD FIM Se Man VOW GR PCARUS Ag Daimler USD BMW BMW Volkswagen Ag Fiat Spa FUS Paccar Inc JPY KRW JPYCorp 005380 KS Navistar International 7202 JP GR JPY Co Motor Ford 7205 JP Hyundai Motor Co Isuzu Motors Ltd 7269 JP Hino Motors Ltd EUR Suzuki Motor Corp JPY Ltd Fuji Heavy Industries 7261 JP Industries Mitsubishi Heavy JPY JPY Mazda Motor Corp Ltd JPY 7267 JP Co Motor Daihatsu 7203 JP Honda Motor Co Ltd 7201 JP Toyota Motor Corp Nissan Motor Co Ltd Weighted Average Simple Average Co-A Holding Zhongtong Bus & Co-A Motor Yangzhou Yaxing Corp Ltd-A Jiangling Motors Automotive-A Jinbei Shenyang Bus Co-A Zhengzhou Yutong Co Ltd-A Cnhtc Jinan Truck Co-A A Ltd-A Co Motor Foton Beiqi Ltd-A Co Power Weichai Automob-A Chongqing Changan Autombile-A Changchun Faway Corporation Ltd-A Saic Motor Limited-A Company Car Faw Automobile Co Ltd-A Dongfeng Weighted Average Simple Average Ltd Sinotruk Hong Kong HKD Ltd-H Weichai Power Co Tech-H 1211 HK A Automobile Group-H Guangzhou Byd Co Ltd-H Ltd-H Qingling Motors Co Company-H Great Wall Motor Automotive China Brilliance Holdings Lt Geely Automobile Co Ltd-H Dongfeng Motor Grp Company nhui Jianghuai Auto vichina Industry & USD NAV US JPY JPY 7270 JP 7011 JT JPY 7262 JP CNY 000957 CH CNY 600213 CH CNY 000550 CH CNY 600686 CH CNY 600609 CH CNY 000951 CH CNY 600418 CH CNY 600166 CH CNY 000338 CH CNY 000625 CH CNY 600742 CH CNY 600104 CH CNY 000800 CH CNY 600006 CH HKD HKD HK 3808 HKD HK 2338 HKD HK 2357 HK 2238 HKD HKD HK 1122 HKD HK 2333 HKD HK 1114 HKD 175 HK 489 HK Code Stock

ncy ncy Curre

Last price 4,0.0 1. n.a. 12.4 246,500.00 ,1.0 1. 11.2 12.1 14.0 10.6 14.7 9.5 1,519.00 2,767.00 2,856.00 9.2 10.2 10.9 9.6 17.5 16.0 1,767.00 3,571.00 5,758.00 598.00 9.7 9.0 9.0 9.7 598.00 14.6 18.4 12.0 24.5 598.00 473.00 10.7 11.1 939.00 191.00 16.2 22.7 22.7 16.2 21.3 47.8 405.30 191.00 101.10 8.3 10.6 185.25 71.80 27.2 9.3 9.3 26.6 27.2 11.9 n.a. 9.8 10.7 71.80 10.5 92.57 69.94 18.0 n.a. 92.33 17.9 n.a. 11.9 9.5 65.73 33.94 16.13 10.9 12.52 11.5 9.9 25.16 12.3 9.7 15.98 12.3 8.0 10.03 13.6 8.9 14.2 7.5 17.07 5.8 10.3 10.42 6.3 10.1 17.25 19.2 14.03 10.38 10.5 13.6 28.35 78.2 169.0 9.5 49.00 12.4 11.9 14.7 39.05 12.40 11.62 12.6 9.8 9.8 12.6 11.62 7.0 7.8 11.08 .5 na n.a. n.a. 6.55 n.a. 183.1 2.94 13.1 17.0 5.38 n.a. 97.0 3.10 22.2 4.10 26.9 10.1 16.1 4.15 11.5 8.34 12.1 2.34 7.6 9.2 3.17 8.62 8.0 13.1 13.1 8.0 8.62 26.1 13.7 17.0 13.2 33.8 9.5 27.6 18.3

34.0 14.9 14.9 34.0 30.0 10.9 10.9 30.0 38 11.5 43.8 63 11.9 16.3 11.1 14.5 7.6 13.7 25.8 39.9 13A 14F PE

19.0 19.0 14.2 17.7 54.3 10.8 10.0 10.0 10.0 19.2 12.9 20.0 10.2 10.2 16.0 19.7 13.0 15.6 14.4 11.4 11.4 11.3 11.4 11.4 11.4 11.0 15F n.a. n.a. n.a. n.a. 7.2 7.2 6.6 6.3 5.3 8.9 9.0 8.0 7.8 6.6 6.3 9.5 9.5 9.2 7.1 7.4 8.1 8.6 8.5 9.7 8.3 9.2 9.0 9.0 9.0 6.5 8.5 8.0 8.3 8.7 8.0

14.9 14.9 16.6 39.9 10.0 17.0 17.0 10.9 19.9 14.5 12.0 13.5 11.7 11.7 16F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7.2 7.2 4.8 9.7 8.0 6.4 7.0 8.2 6.0 5.7 8.8 8.8 9.4 8.6 9.9 8.1 6.1 9.3 9.9 6.8 6.2 8.4 8.1 7.7 9.9 9.2 8.1 8.7 8.0 8.2 7.8 3.9 6.5 5.9 7.8 7.0

13A n.a. n.a. 1.0 1.0 1.2 2.6 1.2 1.1 2.3 1.0 2.5 1.9 0.5 1.6 1.9 1.3 3.2 0.6 3.6 3.8 1.6 1.3 1.6 1.6 2.0 1.5 1.6 0.9 2.7 2.3 0.7 2.5 1.6 1.6 1.0 0.9 3.2 2.3 1.2 1.8 2.2 1.0 1.9 1.3 1.7 1.7 1.3 1.3 1.0 1.7 2.3 3.7 2.4 8.0 2.6 1.2 1.6

14F n.a. n.a. n.a. n.a. n.a. 0.9 0.9 1.1 2.1 1.0 0.9 1.7 2.3 1.7 0.5 1.4 1.6 1.2 3.8 0.6 2.7 3.0 1.2 1.1 1.6 1.6 1.7 1.5 1.8 1.1 3.9 2.7 0.8 2.5 1.5 1.6 0.9 1.0 3.3 2.5 1.6 2.8 1.2 2.8 1.3 2.3 1.4 1.1 1.3 0.9 1.3 1.6 2.7 2.0 2.0 1.1 1.6

PB

15F n.a. n.a. n.a. n.a. n.a.

0.9 0.9 0.9 1.6 0.9 0.8 1.4 2.0 1.5 0.5 1.2 1.5 1.0 3.6 0.6 2.1 2.3 1.0 0.9 1.4 1.4 1.5 1.3 1.6 1.0 3.5 2.4 0.8 2.4 1.4 1.4 0.9 0.9 3.0 2.0 1.4 2.4 1.1 2.3 1.3 1.8 1.2 1.0 1.2 0.9 1.1 1.3 2.3 1.6 1.6 1.0 1.4

16F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.8 0.8 13.8 2.1 0.7 16.9 6.5 1.8 1.3 1.0 0.7 14.1 9.3 1.0 0.2 2.6 7.5 1.5 14.4 7.1 0.9 5.6 1.5 3.4 13.5 0.6 1.7 4.0 1.9 29.8 0.9 26.0 3.7 0.8 16.3 1.3 15.2 2.0 2.3 1.2 1.2 1.3 1.2 15.2 1.4 0.9 3.1 2.7 15.2 2.1 3.3 0.7 31.5 2.4 2.2 19.1 11.9 1.3 10.1 2.6 1.3 13.3 3.5 0.8 15.0 3.3 0.8 14.6 2.9 2.7 3.8 12.0 3.5 0.9 19.1 1.5 1.1 8.7 2.7 1.2 27.5 1.5 2.0 1.0 17.7 3.0 8.3 22.7 2.0 2.4 1.2 2.6 25.8 1.5 3.5 1.1 2.0 9.9 22.8 0.9 13.7 1.1 1.1 0.8 12.0 3.2 13.5 0.6 3.0 1.0 3.3 16.5 2.9 1.1 21.7 1.4 5.0 19.7 1.2 3.9 17.7 3.0

7.4 7.4 25.0 1.8 13.3 2.3 n.a. 17.4 n.a. 0.5 n.a. (6.4) 0.0 15.0 0.9 n.a. n.a. n.a. n.a. 11.5 2.7 ROE 14F 14F (%) (%) 16.8 16.8 15.4 15.4 15.2 17.2 17.0 17.0 11.0 11.0 3.8 3.8

D/Y( 14F 14F %) 2.1 2.1 2.7 2.7 3.0 3.0 3.0 4.2 2.2 2.2 1.6 1.6

4 of17 EV/EBI TDA TDA 14F 14F 10.3 10.3 10.4 10.2 14.2 15.5 80.7 16.7 14.7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.2 6.2 9.0 5.6 5.9 6.4 6.5 3.7 9.4 4.7 3.8 2.5 2.7 6.1 3.9 4.0 6.0 4.6 4.8 7.5 5.9 3.3 7.6 8.9 7.6 5.6 5.7 5.0 4.5 1.6 3.9 9.7 5.7 5.2 4.7 4.0 8.2 5.2 2.9 2.3

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10.2 0.59 0.84 HKD HKD 729HK 1399HK Ltd Sinopoly Battery Ltd Scud Group Table-6: Global Handset Components Manufacturers andRechargeable BatteriesMakers See the last page for Page disclaimer 1 Source: Bloomberg, Guotai Junan International. Weighted Average 20.4 10.0 51.7 12.1 4.28 4.73 HKD HKD 2038HK 285HK Hldgs International Foxconn CoLtd Intl Byd Electronic Weighted Average Ichia Technologies Inc 2402 TT TWD 24.35 23.8 15.1 15.1 23.8 15.7 24.35 14.0 TWD 2402TT 41.50 HKD 2018 HK TechnologiesIchia Inc Aac Technologies In Holdings n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.58 USD 9.60 n.a. ABAT US n.a. Advanced Battery Technologie TWD 6.7 3127 TT n.a. 7.7 22.2 n.a. 7.9 21.1 MoliEnergyCorp E-One 16.2 n.a. 159,000.00 13.5 27.3 25.8 KRW 006400 KS 1,162.00 700.00 571.00 435.00 JPY JPY JPY 6752JP JPY 6624JP Samsung SdiCoLtd 6674JP 6502JP n.a. n.a. 3.2 Tabuchi CoLtd Electric 4.2 n.a. Panasonic Corp Gs Yuasa Corp 5.3 8.4 Toshiba Corp 10.3 6.33 3.77 HKD 1043HK HKD 951HK Coslight Technology Gp Intl Ltd Chaowei PowerHoldings Merry Electronics Co Ltd 2439 TT TWD 175.00 29.7 19.1 19.1 17.8 29.7 12.3 17.0 n.a. 16.30 175.00 12.0 n.a. 14.1 1,495.00 13.1 TWD TWD 10.5 n.a. 8101 TT 2439 TT TWD 27.7 12.9 62.70 3008 TT n.a. 226.00 Arima Communications Corp 22.4 TWD 72.50 CoMerry Electronics Ltd TWD 2392 TT Largan PrecisionCoLtd 5.77 2474 TT 35.50 TWD Cheng UeiPrecisionIndustry 2354 TT TWD TWD Catcher Technology CoLtd 3095 TT 3311 TT Foxconn Technology Ltd Co Taiwan ChiChengEnterprise TechnologySilitech Corp n.a. 133.7 n.a. 301.0 n.a. 17.3 12.8 212.23 n.a. 0.11 67.10 14.7 USD n.a. TSLA US USD n.a. USD n.a. US NEWN 15.6 ENS n.a. US n.a. 15.5 USD New EnergySystems Group n.a. 47.63 US UPG US 15.2 n.a. AXPWUS n.a. Tesla Inc Motors USD n.a. Universal PowerGroup Inc n.a. n.a. US JCI n.a. 25.69 0.30 Axion PowerInternational n.a. n.a. n.a. Enersys US n.a. 7,580.00 EUR n.a. CBAKUS n.a. USD SAFT FP n.a. n.a. DFEL US KRW Inc Johnson Controls 054210KS n.a. n.a. n.a. China Systems Battery InTmk n.a. China BakBattery Inc 18.8 34.5 516.00 259.00 983.00 n.a. Sa Groupe Saft KRW 269,500.00 KRW 024810KS 000420KS KRW CoLtd Elentec 027040KS KRW 051910KS 38.4 Ehwa Technologies Informatio 50,200.00 & Seoul Electronics Telecom KRW 1,988.00 27.6 n.a. 004490KS Co Electric Ltd Rocket n.a. JPY 43.2 & Global Yuasa Battery Co 6758JP n.a. Lg ChemLtd 21.3 16.86 3.6 75.3 26.7 28.1 3.7 CNY 300014CH 27.2 6.83 46.6 5.5 15.77 36.0 Sony Corp 18.2 CNY 000839CH 57.60 CNY Eve EnergyCoLtd-A 002335CH 8.89 Co-A Xiamen KehuaHengsheng CNY 2.68 000049CH Information-A Guoan Citic CNY 300068CH Shenzhen DesayBattery Tec-A HKD Sour-A NaradaPower Zhejiang 819HK Tianneng Ltd PowerIntl Alpha & Omega Semiconductor AOSL US USD 7.23 70.4 n.a. 19.9 19.9 n.a. 70.4 7.23 USD AOSL US Semiconductor Alpha &Omega Simple Average 21.7 16.0 16.0 21.7 Simple Average 24.8 41.2 Simple Average

Handset Components Manufacturers Components Handset Rechargeable Batteries Makers Batteries Rechargeable

Stock Code Stock Stock Code Stock

Currency Currency D 0.19 n.a. D 3.19 n.a.

Last price Last Last price Last

10.9 8.3 7.4 5.3 5.3 7.4 8.3 10.9

30.2 12.3 12.3 30.2 19.8 15.6 15.6 19.8 31.2 63.4 13A 13A n.a. n.a. n.a. n.a. n.a. n.a. PE PE 14F 14F 14F 14F n.a. n.a. n.a. n.a.

16.8 16.8 14.6 20.0 16.6 19.5 19.9 13.4 13.4 13.9 12.2 15.5 10.6 10.5 12.3 35.1 13.6 16.2 23.0 18.0 69.7 15.1 12.6 13.3 11.1 11.1 15F 15F 15F 15F . n.a. 9.2 n.a. 9.7 6.8 8.5

14.2 14.2 12.6 18.5 21.6 15.0 16.5 12.0 12.0 13.0 12.5 10.9 22.5 20.4 15.4 13.2 41.4 13.5 11.7 11.7 11.5 11.1 11.9 16F 16F n.a. n.a. 9.9 9.9 8.1 8.1 6.2

18.0 18.0 10.6 27.8 27.8 13A 13A n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.9 0.9 1.2 1.8 3.3 1.2 1.3 1.9 0.8 7.8 2.9 1.7 1.4 0.7 0.3 3.2 3.2 2.7 1.7 5.7 5.4 2.0 1.3 1.1 5.2 1.1 0.9 6.0 4.3 0.7 1.9 2.3 1.6

32.5 32.5 PB PB 14F 14F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1.0 1.0 5.0 1.9 1.8 1.5 0.9 6.0 9.9 1.8 1.1 0.7 2.6 2.6 2.9 1.5 5.6 6.0 1.2 4.3 1.0 0.9 6.5 4.6 0.7 2.4 1.5

23.6 23.6 15F 15F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.9 0.9 3.0 1.7 1.6 1.4 0.9 4.7 7.0 1.6 0.9 0.6 0.9 0.9 1.8 3.6 1.0 0.8 4.9 3.5 0.7 2.2 1.4

15.8 15.8 16F 16F 16F 16F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1.0 n.a. n.a. 1.6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.7 n.a. n.a. 2.6 n.a. n.a. 4.9 n.a. n.a. 3.7 n.a. n.a. 1.4 n.a. n.a. n.a. n.a. n.a. 1.7 n.a. n.a. 3.3 n.a. n.a. n.a. 1.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 15.3 n.a. 0.7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.7 12.3 0.7 0.7 12.3 0.7 0.7 n.a. 0.9 2.1 1.6 10.1 1.5 2.1 11.9 1.3 1.5 13.4 1.2 2.5 0.6 0.9 23.1 4.2 n.a. 1.5 34.4 5.0 8.6 1.5 7.6 23.6 8.3 0.7 16.8 0.6 1.6 14.8 2.9 2.9 0.8 14.8 1.6 2.9 0.0 28.3 3.0 6.1 1.6 0.9 10.1 0.9 2.3 3.5 18.3 2.8 2.1 17.5 1.9 3.4 11.3 1.3

72.5 n.a.

ROE(%) ROE(%) 19.7 19.7 14F 14F 14F 14F n.a. n.a. n.a. 7.4 7.4

D/Y(%) D/Y(%) 14F 14F 14F 14F n.a. n.a. 2.5 2.5 6.1 6.1 1.3 1.3

5 of17 EV/EBITDA EV/EBITDA 35.5 35.5 14F 14F 14F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2.8 2.8 5.3 5.3 9.9 3.7 2.4 8.4 8.2 6.3 3.0 4.6 8.7 5.9 4.4 2.9 4.7 9.4 9.4

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 Costs Selling&Distribution profit Gross Cost ofSales Automobile Rechargeable Batteries Handset comp & services Turnover 31DecAs at (RMB m) Financial Statement and Ratios See the last page for Page disclaimer 1 Source: the Company, Guotai Junan International. year endof the the Cash at adjustment Other year beginningof the Cash at cashflow changeof Net for Cash flow financing Others Dividend paid Interest paid bankloans changeof Net Cash flow for investing Others prepaidlandlease changeof Net govgrants of Receipt Net Investments inPPE operation for Cash flow Taxes paid Interest received Others items operating Change inother Change inpayable Change inreceivables Change inInventories Impairments Interest Income cost Finance prepaid of land lease Amortization PPE for Depreciation EBT 31DecAs at (RMB m) Dividend pershare(RMB) BPS (RMB) Basic EPS (RMB) Net Income (Loss) Minority Interest (after Tax) Taxes Expenses EBT profit Shareof Other gains Gov Grants Finance Costs Other expenses R&D Admin

Cash Flow Statement Flow Cash

(39,255) (39,255) Income Statement Statement Income (1,217) (1,217) (1,173) (4,610) (5,495) (1,150) (2,055) (1,512) 17,155 17,155 44,381 10.256 10.256 22,551 2012A 2012A 2012A

3,487 3,487 3,737 1,083 5,555 1,144 1,447 3,020 0.000 0.035 5,126 4,675 (271) (144) (299) (605) (966) (132) (862) (205) (85) (54) (51) (78) (25) 291 832 1,252 2,143 2,143 1,252 832 291 101 324 862 236 291 423 550 21 41 51 81 0

(43,252) (43,252) (1,202) (1,202) (5,851) (1,922) (3,534) (1,261) (3,226) (1,017) (1,279) (2,074) (2,012) 19,459 19,459 49,768 10.559 10.559 25,291 2013A 2013A 2013A 2013A

3,487 3,487 1,093 4,508 6,232 2,436 2,222 1,017 3,209 0.050 0.235 6,516 5,018 4,511 (522) (433) (246) (986) (223) (388) (68) (70) (56) (48) 280 272 324 553 832 456 677 37 70 0

(48,277) (48,277) (1,360) (1,360) (7,093) (2,203) (3,993) (2,235) (1,569) (1,152) (1,467) (2,313) (2,313) 20,549 20,549 56,418 13.565 13.565 30,439 2014F 2014F 2014F 2014F

4,689 4,689 2,841 4,396 4,394 1,535 1,152 3,530 0.082 0.408 1,252 8,141 5,429 4,511 (755) (143) (156) (356) (146) (145) (339) (118) (77) (73) (56) 142 150 666 425 961 677 36 73 73

(54,089) (1,290) (7,703) (2,456) (4,194) (2,505) (1,746) (1,093) (1,655) (2,547) (2,547) 21,858 21,858 63,670 14.927 14.927 35,854 2015F 2015F

4,520 4,520 4,689 1,037 8,061 1,707 3,391 1,093 0.131 0.653 1,536 2,143 9,581 5,958 3,611 (203) (561) (192) (914) (140) (282) (630) (234) (373) (446) (116) (70) 749 531 764 35 70 15 70

(60,429) (1,086) (1,862) (2,793) (2,793) (1,171) (1,283) (8,365) (2,710) (1,100) (4,419) (2,815) (1,697) 16.444 16.444 42,214 22,965 11,182 71,611 2016F 2016F

3,705 3,705 3,165 0.191 0.954 2,245 3,165 6,433 4,496 4,496 4,520 9,478 1,908 3,803 1,086 (341) (578) (430) (174) (307) (136) (454) (702) (58) (70) 859 593 831 647 17 70 34 70

hr aia Share Capital Net Assets liabilities Non-current Others income Deferred Long Term bankborrowing Liabilities Current liabilities Other customers Advances from payableandaccruals Other Bank borrowing Trade payables Non-current Assets Other prepayment Non-current Prepaid landleasepayment Deferred tax assets Intangible Assets PPE Current Assets Others Pledge deposit receivable andother deposit Prepayment, Trade Receivables andother Inventories Cash 31DecAs at (RMB m) Days payable Days receivable TurnoverInventory Efficiency Analysis Quick ratio Cash ratio Interest cover ratio(%) Gearing andsolvency Liquidity BPS(%) EPS(%) Rev fromauto sales(%) batteries(%) Rev from rechargeable comp(%) handset Rev from Analysis Growth ROA(%) ROE(%) margin(%) profit Net Automobile Rechargeable Batteries Handset comp & services Gross profit margin(%) Shareholders’ Equity Minority Interest Proposed Dividends Reserve

Profitability Analysis Profitability Balance sheet sheet Balance 24,144 24,144 37,228 18,952 46,684 35,432 23,324 24,144 18,843 11,288 2012A 2012A 2,354 2,354 8,635 1,294 7,341 2,714 3,666 1,040 1,508 4,313 3,603 2,226 9,937 7,345 3,487 2,947 2,947

609 609 786 132 197 2012A 2012A (94.2) (94.2) (12.3) 42.9 42.9 63.8 16.4 11.6 11.6 0 0 149 6.0 6.0 9.9 0.9 0.7 1.9 1.2 0.1 0.3 0.2 8.5 9.3

82

24,856 24,856 43,344 16,172 22,293 48,049 34,935 29,966 13,135 24,856 24,856 19,238

2013A 2013A 2013A 2,354 2,354 9,814 1,159 8,652 1,272 2,942 1,194 1,464 4,628 4,929 2,426 8,221 579.6 579.6 3,147 4,511 50.2 50.2 12.4 86.5 12.2 13.4 16.8 12.0 10.1 13.1 665 665 900 806 868

151 118 118 6.1 6.1 1.2 2.9 7.3 0.7 2.3 1.1 96 4

31,934 31,934 10,614 41,473 12,707 22,443 51,226 35,675 32,796 15,188 31,934 26,095 2014F 2014F 2014F 2014F 2,354 2,354 1,032 9,582 2,401 3,385 1,292 1,070 5,682 1,243 6,264 2,497 9,413 4,689 3,293 3,293 56.4 56.4 62.6 28.5 73.7 20.4 17.7 12.0 10.2 14.4 11.7 11.7

538 538 831 178 192 192 145 6.0 6.0 1.7 8.2 5.6 1.1 3.4 1.7 98 0

35,139 10,705 45,894 25,834 55,416 36,543 36,323 17,483 10,730 35,139 28,951 11,889 2015F 2015F 2,354 9,802 3,674 3,820 1,412 1,096 6,578 2,068 7,719 2,558 4,520 3,526 55.8 55.8 10.2 51.7 10.0 59.9 17.8 18.5 12.2 10.2 15.0

904 677 858 174 307 148 100 5.9 5.9 2.4 9.7 6.4 1.7 4.6 2.4 6 of17 0

38,728 32,056 38,728 10,705 51,323 29,638 60,566 37,549 40,190 20,057 11,422 11,949 2016F 2016F 3,868 2,355 9,927 5,106 4,297 1,546 1,126 7,656 3,381 9,307 2,628 4,496

55.0 55.0 46.1 10.2 46.1 17.7 19.0 12.4 10.2 15.6

449 778 861 888 171 151 102 6.0 6.0 9.1 3.1 8.0 5.1 2.2 6.1 3.1 0

Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014 (2) The Analysts and their associates do not have any financialin and their associatesdonothave TheAnalysts (2) (3) Except for Shandong Chenming PaperHoldi Shandong Chenming Except for (3) 18months Time Horizon:6to SengIndex Hong KongHang The Benchmark: Definition Rating Company See the last page for Page disclaimer 1 Guotai Junanandits groupcompanies havenothadinvestmentbank (4) andtheirassociatesdonotserveasano TheAnalysts (1) OF DISCLOSURE INTERESTS 18months Time Horizon:6to SengIndex Hong KongHang The Benchmark: Definition Sector Rating issuer mentionedinthisResearchReport. do groupcompanies Junanandits Guotai HoldingsLtd.(08232), U-Ton This Research Report does not constitute an This ResearchReportdoesnotconstitute DISCLAIMER 12months. within thepreceding Website: www.gtja.com.hk Tel.: (852) 2509-9118 Fax: (852) 2509-7793 27/F., HongKong. Millennium Plaza,181Queen’s RoadCentral, Block,Grand Low Guotai Securities(Hong K © 2014 Junan compani subject GuotaiJunananditsgroup jurisdiction publication,avail in any where suchdistribution, fordistribut intended at,or isnot directed This ResearchReport where necessaryand ownfinancial consulttheir mutable situation,souncertaintymay contain.Investors ofthefutu estimates andforecastsderivedfromtheassumptions accuracy completenessoftheinformationand the and not guarantee ofthein the accuracy toensure made hasbeen best effort Though orinvestment decisionsmade bybe contrary toopinions the executiv persons, dealersandotherprofessional be contrary inthisreportmayAny to differor opinionsexpressed investproprietarily). or underwriter including investmentbanking,serv research reports, co itsgroup Junanand Guotai Junan"). Limited ("Guotai (Hong Kong) Sell Relative Performance <-15%; <-15%; RelativePerformance is-5%to-15%; RelativePerformance is-5%to5%; RelativePerformance Sell >15%; RelativePerformance is5%to15%; RelativePerformance Reduce Neutral Accumulate Buy Rating Neutral Relative Performance is -5% to 5%; is-5%to5%; RelativePerformance <-5%; RelativePerformance >5%; RelativePerformance Underperform Neutral Outperform Rating or the fundamental outlook of the company or sector is unfavorable. outlookofthecompany sectorisunfavorable. or or thefundamental outlookofthecompany sectorisunfavorable. or or thefundamental outlookofthecompany sectorisneutral. or or thefundamental outlookofthecompany sectorisfavorable. or or thefundamental outlookofthecompany sectorisfavorable. or or thefundamental Definition Definition or the fundamental outlookofthesectorisunfavorable. or thefundamental outlookofthesectorisneutral. or thefundamental outlookofthesectorisfavorable. or thefundamental Definition Definition ong) Limited. ong) All Rights Reserved.

es to any registration or licensingr es toany or registration invitation or offer to acquire, purchase or invitationacquire, purchase orofferto advisers prior to any investmentdecision.advisers priortoany es of Guotai Junan group of companies. groupofcompanies. es ofGuotaiJunan ngs Limited-H shares (01812), China All ngs Limited-Hshares(01812), should understand objectivesandits andcomprehendtheinvestment rel fficer of the issuermentionedinthisResearchReport. fficer of ability or use would be contrary to applicable law regulation or toapplicable contrary would be use ability or asset management and investmentbankinggroupsofGuotaiJunan. asset managementand ion to or use by, any person or entity who isacitizenorre entityperson or any oruseby, ion to opinions orinvestment strategiesexpressedorally or inwriopinions ices and etc. (for example, t example, ices andetc.(for formation and data containedinthis data and formation terests in relation to the issuer mentioned inthisResearch terests inrelationtotheissuermentioned re political andeconomicre conditions with unpredicta inherently

data herein. This Research Report may contain someforward-l ResearchReport maydata herein.This contain not hold equal to or more than 1% of the market capitaliza themarket 1%of than toormore not holdequal mpanies may do business that relates to companiescoveredin businessthatrelatesto may do mpanies ing relationships thisResea with theissuermentionedin equirement within suchjurisdiction.equirement subscribe forsecuriti Any expressedinthisreportma opinions Access (Holdings) Limited (00633) and Chin Access (Holdings)Limited (00633)and he placing agent, lead manager, spo placing agent,leadmanager, he Research Report, GuotaiJ ResearchReport, es byGuotai Juna

sident of or located or located sident of tten form by sales tten formby or which would which or Report. n Securities unan does does unan rch Report rch Report ated risks, tion of the tion ofthe y differ or y or differ ble and ble and

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Company Report BYD Company Ltd.比亚迪股份有限公司 (01211 HK) 7 April 2014