Investment Value Analysis of BYD: An Integrated PEST and Financial Approach

Abstract

This paper presents a detailed investigation into BYD Company Limited's investment value, incorporating a comprehensive Political, Economic, Social, and Technological (PEST) analysis with an in-depth financial evaluation. Findings from the PEST analysis underscore BYD's adept navigation of supportive government policies and its proactive stance against international trade challenges, affirming its strong domestic market position and readiness for global expansion. Economically, BYD has shown resilience through effective pricing strategies and market diversification, maintaining profitability amidst global financial fluctuations. Socially, the company's alignment with environmental sustainability trends has strengthened its brand and customer loyalty. Technologically, BYD’s advancements in battery technology and electric drivetrains position it as an industry leader. Financial findings highlight a robust year-over-year revenue increase of 42.04%, an impressive gross profit rise by 42.42%, and a significant leap in operating profit by 360.53%. Despite slight contractions in net profit margins, the company’s financial health remains strong with promising prospects for future profitability. Together, these analyses depict BYD as a compelling investment, poised for sustained growth within the NEV sector.