BYD's first-half revenue reached RMB 89.13 billion ($13.78 billion), up 53.60 percent year-over-year, but net profit attributable to shareholders fell 29.4 percent year-over-year to RMB 1.52 billion, according to the company's semi-annual report released on the evening of August 27.
The company's gross profit margin fell to 11.13 percent from 18.05 percent in the first half of last year, according to the report.
BYD's automotive business reported revenue of RMB 38.15 billion in the first half, up 25.41 percent year-over-year, while its battery business reported revenue of RMB 7.85 billion, up 70.47 percent year-over-year.
Its automotive business accounted for 42.80 percent of total revenue, down from 52 percent last year.
BYD subsumed its masks business, which had revenue of over RMB 8 billion, into its automotive business last year, resulting in the highest total gross margin of 19.38 percent last year since 2017.
BYD's automotive business revenue growth rate of 25.41 percent in the first half was due to low initial production capacity of the company's popular DM-i models.
BYD's new energy passenger vehicle side sold 150,000 units in the first half, up 161 percent year-over-year. It ranked second only to Tesla and SAIC-GM-Wuling in global sales of pure electric vehicles.
BYD's installed battery capacity of 9.55 GWh in the first half of the year ranked second only to local battery giant CATL.
Analysts at Essence Securities said BYD's first-half results were in line with expectations, and were optimistic about BYD's vehicle sales and performance in the coming years.
The analysts expect BYD's net profit attributable to shareholders of listed companies to be RMB 6.25 billion, RMB 11.28 billion and RMB 13.63 billion from 2021 to 2023, corresponding to a current market cap PE of 132 times, 73.1 times, and 60.5 times.
The analysts maintain a Buy-A rating with a six-month target price of RMB 360 per share, implying a 25 percent upside from Friday's closing price of RMB 288.15.
BYD shares traded in Shenzhen fell 1.69 percent to RMB 283.27 by the end of morning trading.