Credit Suisse lowered its target price for BYD Company (01211) to HK$82 from HK$85, and reiterated its "outperform" rating.
The research house noted that China's government has announced the long-awaited 2018 new energy vehicle (NEV) subsidy adjustment plan yesterday.
It believes that BYD, as China's second-largest e-bus maker with in-house battery supply, will face margin pressure from falling e-bus selling price. It can enjoy 2-14% subsidy rise for its pure-electric PV, thanks to its products' long-drive distance.
Credit Suisse lowered its 2018-19 earnings forecasts by 5% with lower e-bus margin assumption.
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