CLSA has released a research report stating that it continues to be optimistic about BYD COMPANY (01211), as its product and technology cycles are getting back on track, and it has established a solid business foundation in overseas markets. The firm assigns a High Conviction Outperform rating with a target price of HK$130. While facing challenges in the domestic market, Chinese electric vehicles are gaining significant momentum in the international market and maintaining relatively high profit margins, implying that domestic challenges are already fully reflected in the stock price, while international markets offer more upside potential. Overall, the firm expects total passenger vehicle and electric vehicle sales in 2026 to reach 29.6 million and 18.6 million units respectively, based on an electric vehicle penetration rate of 62.8%.
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