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<Research> BNP Paribas: BYD COMPANY (01211.HK) Earnings Forecast Faces Downgrade Pressure, Rated Underperform with TP HKD87
Recommend 7 Positive 8 Negative 5 |
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BNP Paribas published a research report stating that BYD COMPANY (01211.HK) reported net profit of RMB4.1 billion in 1Q26, down 55% YoY and 56% QoQ, slightly below the banks forecast of RMB4.9 billion and also below market expectations. The bank expects elevated oil prices to support BYD COMPANYs overseas sales in 2Q26. However, in the domestic market, BYD COMPANY is shifting its strategy from pursuing price competitiveness to enhancing charging experience. The transition period introduces uncertainties to the companys earnings this year. The bank noted that the market may be overly optimistic about BYD COMPANYs earnings forecast for this year. Given the decline in 1Q26 earnings, profit for the remaining quarters would need to increase 62% YoY to meet the original full-year forecast of RMB42 billion, implying potential downside risk to the share price if earnings forecasts are revised downward. The current valuation is equivalent to about 20x forecast PE for the next 12 months, which appears expensive compared with peers. The bank assigned an Underperform rating to BYD COMPANY with a TP of HKD87. (sl/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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