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2025-09-16 10:52:29
[UBS: BYD Reiterates "Buy" with a Target Price of HK$160] UBS published a report stating that since BYD (01211.HK) reported weaker-than-expected second-quarter earnings three weeks ago, investor sentiment has been generally bearish. Typical concerns include market share loss to smaller electric vehicle manufacturers and profit pressure from high fixed costs. The report states that BYD, as the world's second-largest EV/ESS battery manufacturer, sees increasing international sales, and believes its stock price is at a bottoming-out point. The bank reiterated its "Buy" rating on BYD with a target price of HK$160. Beyond valuation, several factors could trigger a re-rating of BYD. UBS expects BYD's per-vehicle net profit to recover from the second-quarter low in the third and fourth quarters as the company adjusts its cost structure and benefits from the peak season starting in September. Overseas sales are projected to achieve further high double-digit growth through 2026, driven by the opening of overseas factories, the expansion of its distribution network, and increased brand awareness. If overseas sales increase by 500,000 units, it could bring in RMB 10 billion in incremental profit.
