Goldman Sachs Maintains Buy Rating on BYD with HK$134 Target, Q1 Operating Profit Surpasses Expectations

Stock News09:21

BYD COMPANY (01211) delivered a strong first-quarter performance, with revenue, gross profit, and operating profit exceeding expectations by 12%, 18%, and 82% respectively. The outperformance appears to be driven by an increased proportion of overseas sales, which reached 46% during the quarter, alongside better-than-expected external battery sales and stringent control over bill-of-materials costs. These factors contributed to a rise in the gross margin to 18.8%. Goldman Sachs has reaffirmed its "Buy" rating on BYD with a target price of HK$134. The firm believes that BYD is well-positioned to capture demand in the domestic mass market while accelerating its overseas expansion. It is expected that international markets will become a secondary growth driver, contributing 83% of the incremental growth in vehicle sales by 2030.

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