[ET Net News Agency, 29 July 2020] BOCI Research raised its target price for BYD
Company (01211) to HK$79 from HK$48 and retained its "hold" rating.
Given the lack of new models and subsidy phase-out, BYD's NEV (new energy vehicle) sales
volume plunged 58.3% in 1H, in contrast to the outstanding sales performance of ICE
(internal combustion engine) vehicles, thanks to hot sales of Song Pro, the research house
said.
Driven by the earnings contribution of the surgical mask business, BYD's net profit
could show double-digit growth in 1H, becoming the only OEM to achieve positive earnings
growth in the HK stock market, BOCI added.
Considering the potential separate listing of the semiconductor business, BOCI reckoned
the company as a core part supplier for NEV has been well accepted by the market. Yet, for
its main automobile business, BOCI believes its potential recovery should depend on the
market's feedback on new models in 2H. (KL)