[ET Net News Agency, 20 June 2018] Nomura chopped its target price for BYD Company
(01211) to HK$46.1 from HK$89.5, and downgraded its rating to "reduce" from "buy".
The research house believes BYD is facing several headwinds that give rise to a more
uncertain earnings outlook over FY2018-19 despite a strong new model lineup and improving
product quality in its EV business.
The headwinds include: (1) another 20% subsidy cut in FY2019; (2) raising finance costs
that could extend into 2H; (3) competition in the EV market, from ICE OEMs and start-ups;
(4) an aggressive return eyed by LG Chem and Samsung SDI after being included in the
industry whitelist; and (5) lower monorail contribution, as government approval has been
slow.
As such, Nomura reduced its FY2018/19 monorail revenue to CNY3bn/CNY6bn (from
CNY12bn/CNY20bn), gross margins for the autos business by 0.5pp/1.0pp, with
CNY1bn/CNY0.9bn increases in finance costs, which result in an average 55% net profit
reduction. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01211 BYD COMPANY
Nominal 
245.200 +0.200 (+0.082%) Others
20/06/2018 11:09
[I-bank focus]Nomura chops BYD Company (01211) to HK$46.1
| Remark: | Real time quote last updated: 20/09/2024 18:00 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |