[ET Net News Agency, 5 June 2020] J.P. Morgan raised its target price for BYD Company
(01211) to HK$66 from HK$36 and upgraded its rating to "overweight" from "underweight".
The research house said BYD's share price dynamic and underlying drivers will see it
behaving more like a tech or battery stock than a carmaker in the future. The earnings
contribution from BYD's external battery business is small at this stage (6% in 2020) but
could reach 10-15% by 2022.
JPM believes the battery industry will become highly concentrated. Among Chinese
suppliers, ultimately only the top players will be relevant to global OEMs in terms of
technology and capacity, this includes CATL, BYD and Guoxuan High-Tech. It expects their
collective share of China's NEV market to exceed 70% by 2022 from 50% in 2017.
JPM lifted BYD's 2020-22 earnings estimates by 2-15% mainly to reflect higher external
battery sales. (KL)
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01211 BYD COMPANY
Nominal 
201.200 +3.700 (+1.873%) Research Report
05/06/2020 13:39
{I-bank focus}JP Morgan lifts BYD Company (01211) to HK$66
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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