Top mover alert: BYD sinks 6.3% as EU tariff fears wipe out post-earnings optimism
🚨Despite reporting a structural milestone last Thurs (overseas revenue exceeding domestic for the first time, while 2Q gross margin of 18.9% beat the 18% estimate), $BYD COMPANY(01211)$ shares listed in Hong Kong are trading 6.4% lower to HKD 86.20 as of 1124AM today
🌍Investors are seemingly looking past the in-line earnings result (where 1H net income fell 21% to 12.3 billion tuan and 1H revenue fell 7.1% to 344.8 billion yuan) to focus on the EU tariff risks on Chinese plug-in hybrid EVs and the progress of BYD’s Hungary plant as a key mitigation strategy given the increasingly crucial role overseas operation play in BYD’s sales and earnings (Bloomberg Intelligence)
Technically, Bloomberg AskB believes that the next share support may be at HKD 80 followed by its 52-week low at HKD 71.40. A reclaim of HKD 87 may serve as a bullish signal
✳Macquarie's trending BYD call warrant $BYD MB eCW270105(OPCW.SI)$ (https://warrants.com.sg/tools/livematrix/OPCW) is down 32.5% to SGD 0.027 as of 1124AM, and may be suited for those looking for a leveraged exposure to any upside rebound in BYD shares, using a smaller capital outlay compared to trading BYD shares
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