CLSA Affirms BYD's High Conviction Outperform Rating on Resilient Q1 Profit and Margins

Stock News16:10

CLSA has issued a research report maintaining its forecast for BYD COMPANY (01211) to achieve sales of 4.9 million vehicles by 2026. The firm reiterated its expectation for the group to post a profit of RMB 41.8 billion this year, citing healthier cash flow resulting from prudent capital expenditure and R&D investments. CLSA set a target price of HKD 130 for BYD's H-shares and RMB 130 for its A-shares (002594), both accompanied by a "High Conviction Outperform" rating. BYD COMPANY demonstrated resilience in both profit and gross margin during the first quarter of this year, with net profit reaching RMB 4.08 billion, broadly in line with the bank's and market expectations. The report highlighted that BYD's leadership in fast-charging technology is expected to boost its market share in China to approximately 16.1% by 2026, compared to 14.8% in 2025. Recent new models equipped with fast-charging technology have received strong market response, with the "Tang" model securing 30,000 orders within 24 hours.

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