BYD Company Limited (01211) rose nearly 5% after reporting its financial results. At the time of writing, the stock was up 3.38%, trading at HK$107.2, with a turnover of HK$2.448 billion.
The company announced its first-quarter performance, with revenue reaching 150.225 billion yuan. Net profit attributable to shareholders of the listed company was 4.085 billion yuan, a decrease of 55% year-on-year.
J.P. Morgan noted that after excluding approximately 2 billion yuan in foreign exchange losses, the company's gross profit margin actually showed improvement. The net profit per vehicle in the first quarter was approximately 8,900 yuan, higher than the 6,800 yuan in the same period last year and largely flat compared to 8,800 yuan in the fourth quarter of last year. The gross profit margin improved by 140 basis points quarter-on-quarter to 18.8%.
J.P. Morgan expects the first quarter to represent the trough of the current profit cycle, with sales acceleration beginning in the second quarter. It forecasts a sequential sales increase of about 60% in the second quarter, significantly higher than the industry's typical seasonal average of 25%-30%. The importance of overseas markets is expected to grow further, with overseas revenue already accounting for about 70% of total vehicle revenue in the first quarter. For the full year, overseas revenue is projected to represent approximately 60%.
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