Credit Suisse raised its target price for BYD Company (01211) to HK$185 from HK$150 and maintained its "outperform" rating.
The research house said BYD's 3Q net profit is in line with its Rmb1.74-1.94bn earnings guidance. The company attributed 3Q auto business' sequential profit increase to flagship models' strong sales. As a result, BYD's quarterly gross margin hit a four-year high in
3Q.
BYD guided its 4Q net profit of Rmb0.79 -1.19bn (up 1,859%-2,855%), due to the strong momentum of its high price/high margin "Han" high-end sedan. Considering the stronger guidance, Credit Suisse revised up 2020-22 profit estimates by 5.1%/7.2%/7.5% with higher-margin assumption.
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