BYD's 2024 financial results show strong growth despite market challenges

Written by

Fabien Yip

Market Analyst

Key financial performance highlights

BYD, the Shenzhen-based automotive manufacturer, has reported impressive financial results for the year ending 31 December 2024. The company achieved revenue of RMB 777.1 billion, representing a substantial 29% increase year-on-year, surpassing analyst expectations and outperforming its main competitor, Tesla.

BYD's net income also saw significant growth, rising by 34% year-on-year to reach RMB 40.3 billion. This improvement was partially driven by enhanced net income margins across the company's operations.

According to the company's annual report, automobile and related products continue to be the dominant revenue stream, accounting for 79.5% of total revenue.

Vehicle sales reached 4.27 million units for the year, with 1.76 million units being battery electric vehicles (EVs). This puts BYD on par with Tesla's delivery figures, marking a significant milestone in the company's growth trajectory.

Strategic focus on international expansion

A key priority for BYD in 2025 is accelerating its overseas passenger vehicle business expansion. The company recognises that EV penetration rates in international markets are significantly lower than in China, presenting substantial growth opportunities.

To fund this international growth strategy, BYD has raised HK$43.5 billion through a share sale earlier this month. This capital will be directed towards building new manufacturing facilities and expanding distribution networks across multiple regions including Europe, Southeast Asia, and Latin America.

The global expansion strategy appears to be a calculated move to reduce the company's vulnerability to tariffs and trade barriers.

Senior management has set an ambitious sales target of 5 to 6 million vehicles for 2025. The company has already made significant progress, with sales in the first two months of 2025 up 93% year-on-year to 623,384 units.

Technological innovations driving competitive advantage

BYD invested RMB 54.2 billion in R&D during 2024, a 35% increase compared to the previous year, demonstrating its commitment to technological leadership.

Last week, BYD unveiled a groundbreaking new battery and charging system that represents a significant leap forward in EV convenience. The technology allows compatible vehicles to gain 400 kilometres of range from just a five-minute charge, substantially outperforming Tesla's superchargers, which provide approximately 275 kilometres after a 15-minute charge.

This technological advancement could prove to be a crucial selling point for BYD as it expands into new markets where charging infrastructure and range anxiety remain significant barriers to EV adoption.

However, the company faces increasing competition in areas such as intelligent driver assistance systems, where its technological advantage is narrowing as other Chinese EV manufacturers intensify their development efforts.

Market challenges and risk factors

Despite its strong performance, BYD faces several significant headwinds. Uncertain international trade policies represent a major challenge, particularly with potential new tariffs from the Trump administration that could affect the global EV market.

While BYD has strategically focused on expanding into international markets other than the US to reduce exposure to American tariffs, the company cannot entirely escape the effects of heightened geopolitical tensions.

Intensifying industry competition presents another substantial challenge. The EV market is becoming increasingly crowded with both established automotive manufacturers and new entrants, all competing for market share.

Weak domestic consumption in China also poses a risk to BYD's growth prospects, making the company's expansion into international markets even more critical for sustaining its growth trajectory.

Stock performance and valuation analysis

BYD's stock has delivered exceptional returns in 2025, with shares up 46% as of 25 March. This performance stands in stark contrast to Tesla, which has seen its stock decline by 31% over the same period.

The Hong Kong-listed BYD stock reached a historic high of HK$427 last week, shortly after the announcement of the company's new battery platform. Despite the positive fourth-quarter financial results, BYD experienced a pullback of nearly 4% on 25 March.

From a valuation perspective, BYD appears reasonably priced compared to its peers. The stock is trading at approximately 20 times forward earnings, significantly lower than Tesla's multiple of 83 times earnings. This relatively modest valuation suggests potential for further share price appreciation.

Analyst sentiment remains overwhelmingly positive, with 31 out of 35 analysts on TradingView assigning a buy or strong buy rating to the stock. The average target price stands at HK$444 as of 25 March, indicating further upside potential from current levels.

Figure 1: Year-to-date returns of BYD and Tesla

Technical analysis and price outlook

The price chart for BYD exhibits a strong uptrend that has been in place since August 2024. The recent pullback can largely be attributed to overbought conditions.

As the RSI retreats to a more neutral level around 50, buying interest is expected to return, particularly around the 20-day moving average (SMA) near HK$377, with room to grow to the recent high at HK$427.

Should the share price decline below HK$377, the 50-day SMA is expected to provide strong support. This technical level has historically acted as a reliable floor during pullbacks.

Figure 2: BYD technical daily price chart

How to trade BYD shares

1. Research BYD thoroughly, examining its financial performance, growth strategy, competitive position, and the broader EV market trends before making any investment decisions.
2. Open an account with us by completing our straightforward application process.
3. Search for BYD in our platform or app. You can access BYD's Hong Kong-listed shares through our comprehensive offering of international markets.
4. Place your trade based on your analysis and risk management strategy. Remember that all trading involves risk, particularly when using leveraged products.

Remember that while BYD shows strong potential, it's important to consider the risks associated with international markets and the volatile nature of the EV sector. Using tools like stop-losses can help manage these risks when trading.