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Nomura Expects BYD COMPANY (01211.HK) Overseas Expansion to Be Sustainable Growth Catalyst, Rates Buy
Recommend 8 Positive 16 Negative 6 |
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Nomura released a research report stating that BYD COMPANY (01211.HK) recorded revenue of RMB150 billion in 1Q26, down 12% YoY. Given that passenger vehicle deliveries in 1Q26 were only 689,000 units, down 30% YoY, the results still beat expectations, mainly driven by overseas sales (with higher average selling prices), which rose 50.1% YoY to 320,000 units. Gross margin was 18.8%, down 1.3 ppts YoY but improving 1.4 ppts QoQ, demonstrating the clear benefits of strong growth in overseas markets. The broker noted that management has formulated comprehensive plans to address competition, including the launch of Blade Battery 2.0 and a charging infrastructure development plan in March. The "Song Ultra EV", equipped with Blade Battery 2.0 and ultra-fast charging technology, received more than 60,000 orders within one month of launch. Nomura expects more new models featuring the new battery technology to be introduced in the near term, which should further improve order momentum in the domestic market. Nomura maintained its Buy rating on BYD COMPANY, with an H-share TP of HKD127. The broker expects overseas shipments to continue rapid growth and become a sustainable long-term growth catalyst, partly offsetting risks faced in the China domestic market. However, 2Q26 remains a transitional period, with a more significant recovery expected in 2H26. (hc/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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