China Galaxy Securities has initiated coverage on HARMONY AUTO (03836) with a "Buy" rating, projecting the company will achieve revenues of 28.103 billion yuan, 38.488 billion yuan, and 44.961 billion yuan for 2025-2027 respectively. The firm expects net profits attributable to shareholders of 0.61 billion yuan, 2.43 billion yuan, and 4.16 billion yuan, corresponding to EPS of 0.04 yuan, 0.16 yuan, and 0.27 yuan respectively. Based on comprehensive absolute and relative valuation methods, the company's fair value per share ranges from 3.28-4.11 yuan (HK$3.61-4.52), corresponding to a market capitalization range of 49.93-62.57 billion yuan (HK$54.92-68.82 billion).
HARMONY AUTO is China's leading pure luxury and ultra-luxury automotive dealership group, operating 14 luxury and ultra-luxury automotive brands. These include five ultra-luxury brands: Rolls-Royce, Bentley, Ferrari, Maserati, and Lamborghini, along with nine luxury brands: BMW, MINI, Audi, Volvo, Land Rover, Lexus, Jaguar, Lincoln, and Alfa Romeo. The company ranks in the first tier of automotive dealership groups, placing 26th on the Top 100 Automotive Dealers list in 2024 with total operating revenue of 17.067 billion yuan and total vehicle sales of 48,000 units.
The company first entered the new energy vehicle sector in 2015, signing a "Internet + Smart Electric Vehicle Strategic Cooperation Framework Agreement" with Tencent and Foxconn, providing expertise in premium automotive marketing and services. In 2023, HARMONY AUTO established a strategic partnership with BYD, building sales channels in Asia and Europe, transitioning toward new energy vehicles and export markets, accelerating expansion in Hong Kong and overseas markets to create a second growth curve.
China Galaxy Securities noted that HARMONY AUTO possesses deep dealership establishment capabilities and operational experience, complementing BYD's global new energy leading brand image to achieve rapid channel expansion across Asia-Pacific, Europe, and Oceania regions. After establishing its first batch of Hong Kong stores in 2023, the company quickly replicated its channel-building capabilities in other regions. On July 12, 2025, the company opened its 100th Harmony BYD store in Melbourne, successfully establishing 100 Harmony BYD stores within two years.
On September 1, 2025, the company announced that BYD's indirect wholly-owned subsidiary would subscribe for a 10% stake in iCar Group, the operating entity of the company's Hong Kong and overseas business, for $40 million. The cooperation between HARMONY AUTO and BYD has extended from business operations to equity participation, further deepening their strategic alliance.
In the first half of 2025, the company's channel capabilities demonstrated effectiveness, helping BYD top new energy sales charts in Hong Kong, Singapore, Indonesia, Malaysia, Philippines, Australia, and other Asia-Pacific regions. In Europe, the company supported BYD's brand sponsorship efforts to build market reputation, helping BYD break through trade barriers and brand prejudices in European markets, with rapid increases in new energy market share in the UK and France.
Looking ahead, BYD's technological strengths including Blade Battery and CTB technology have gained global market recognition. Through localized production capacity construction, local employment, and customized vehicle models, BYD continues to enhance global market acceptance with exports showing strong momentum. BYD's export sales are expected to reach 1 million units in 2025, with HARMONY AUTO positioned to contribute 7-8% of sales scale through its channels across Asia-Pacific, Europe, and Oceania regions.