BYD COMPANY(01211)Following it's strong sales performance in September, growing 151% YoY, can BYD maintain its momentum Recent anoouncement of Sixt, the German rental car company agreeing to buying 100,000 EVs from BYD is an indication of its export potential on top of its red hot sales in the domestic Chinese market. Also, note-worthy is it's battery business. It has grown to be the second largest producer in the world overtaking LGES. It's vertical production & new exciting product mix has also helped margin improvement. C Suisse estimated that whilst sales jumped 160% in Q3, its profit is likely to jumped almost twice as much to 300%.
it is a stock to pay attention to at these price levels. Its prices remained depressed because of the overhang of Berkshire ( who owns 7.7%) selling, widening it's disparity from its strong fundamentals. Research houses has target price ranging from $275 (JPM) to $640 (Citi)
Whilst the reason for its selling is not disclosed, many speculated that it has to do with US potential regulation for Chinese tech. Potential catalyst are China policies after Oct 16 party congress and Berkshire's disclosure of its major trades for Q3, also in mid Oct
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