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By Jiahui Huang
Shares of BYD rose after the Chinese electric-vehicle maker said quarterly profit could double on record sales, a forecast that comes as the company looks to overtake industry pioneer Tesla in sales volume.
The automaker’s H shares bucked broader market weakness, climbing 8.0% to 260.00 Hong Kong dollars (US$33.23) on Wednesday, on track for their biggest one-day gain of the year. The move took year-to-date gains to 35%.
In China, the company’s A shares rose 4.95% to 249.79 yuan.
BYD, which also makes handset components and batteries, said late Tuesday that it expects to post third-quarter profit of CNY9.55 billion ($1.31 billion) to CNY11.55 billion, up from CNY5.72 billion a year earlier.
The guidance came after BYD data earlier this month showed that its fully electric-vehicle sales rose 67% to 431,603 units in the third quarter, putting it on the cusp of overtaking global leader Tesla. Tesla sales over the same period fell to 435,059 units from 466,140 a year earlier.
HSBC analysts led by Yuqian Ding and Li Yang on Tuesday kept a buy rating on BYD with a HK$408.00 target price, saying the company’s “strong [new energy vehicle] product cycle and higher profitability potential should boost its earnings profile over the long run.”
Nomura analysts last week kept their buy rating with a target price of HK$356.00, pointing to BYD’s market leadership in China, with 36.5% year-to-date market share in EV retail sales.
Write to Jiahui Huang at [email protected]
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