BYD's Hong Kong shares set for best day in over 6 months, Citi lifts TP

Reuters2021-07-12

** Hong Kong shares of Chinese electric vehicle maker BYD Co Ltd surge 9.7% to HK$237.20, on course for their best day since Jan. 4

** Stock is the biggest percentage gainer in the benchmark Hang Seng Index and the second-biggest gainer in the Hang Seng China Enterprises Index

** Sales of new energy vehicles (NEVs), including battery-powered electric vehicles, plug-in petrol-electric hybrids, and hydrogen fuel-cell vehicles, maintained their strong momentum in China, jumping 139.3% to 256,000 units in June, industry data showed

** Auto sales in China fell 12.4% in June on the year, as a global shortage of semiconductors hit production in the world's biggest car market

** Citi lifts target price of BYD's Hong Kong shares to HK$327 from HK$287, on expectations of further improvement in NEV sales amid increasing adoption and acceptance of NEVs by Chinese customers

** Citi reiterates Geely and BYD as the sector's top picks, seeing both offering the best NEV model cycles from the second half of 2021 into 2022

** BYD's Shenzhen shares rise 9.7% to 272.91 yuan, highest since Feb. 3

** Shares of Geely Automobile rise 4.7% to HK$24.75

** Both the Hang Seng China Enterprises Index and the benchmark index climb 0.4%

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