[ET Net News Agency, 30 October 2019] Daiwa Research lowered its target price for BYD
Company (01211) to HK$41 from HK$57 and downgraded its rating to "hold" from "buy".
The research house said BYD's 3Q net profit of CNY120m (down 89%) was in line with the
previous guidance. However, its full-year 2019 guidance of CNY1.58-1.77bn, down 36-43%,
was lower than Daiwa's expectation.
Daiwa expects the near-term outlook to remain challenging, but 2020 may see a sales
recovery after the impact of the frontloading of sales in 1H 2019 diminishes.
BYD was confident in the outlook of other businesses such as ICE (driven by Song Pro)
and handset equipment, which could partly compensate for the slowdown in NEV. Daiwa cut
its 2019-21 EPS forecasts by 35-43% after factoring in the lower-than-expected 4Q
guidance. (KL)