[ET Net News Agency, 28 August 2019] Citi Research lowered its target price for BYD
Company (01211) to HK$78.7 from HK$90 and maintained its "buy" rating.
The research house said the target cut was after balancing realistic impacts to sales
volume from NEV subsidy cut, as well as potential positive stimulus catalyst and BYD's
battery strategy.
Citi expects the Central government to launch impactful NEV auto stimulus in 4Q in order
to stabilize 2020-21 China NEV PV sales and create a floor for the sector's valuation. It
lowered BYD's 2019-21 net profit forecast to Rmb2.3/4.6/5.5bn. (KL)