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China Merchants Securities: BYD COMPANY (01211.HK) Quarterly Results In Line; Fundamentals Expected to Improve in 2Q
Recommend 21 Positive 43 Negative 15 |
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China Merchants Securities published a research report stating that BYD COMPANY (01211.HK) reported 1Q net profit of RMB4.09 billion, down 55% YoY and 56% QoQ, broadly in line with the brokers expectations and above the market forecast of RMB3.4 billion. The decline in earnings was mainly attributable to foreign exchange losses (versus gains in the same period last year), rising raw material costs, inventory clearance of older vehicle models, and a sharp drop in results from its subsidiary BYD Electronic. Excluding net profit attributable to BYD Electronic, 1Q profit per vehicle was estimated at approximately RMB5,800. During the period, automobile sales fell 30% YoY to 700,000 units, while revenue declined only 11.8%, reflecting a higher contribution from higher-priced overseas sales, which rose 50% YoY, and high-end products, which increased 60% YoY. The broker estimated that the average selling price of vehicles rose 20% YoY and 18% QoQ. Overall gross margin improved 1.4 ppts QoQ to 18.8%, exceeding market expectations, with automobile gross margin estimated to have increased 1.9 ppts QoQ to 23.4%. BYD management expects full-year overseas sales to exceed 1.5 million units. Inventory clearance of older domestic models has largely been completed. Several new models equipped with fast-charging technology and the second-generation Blade Battery will be launched soon, including Song Ultra EV, Datang, Seal 08 and Sea Lion 08. New model orders are strong, with Datang receiving more than 30,000 orders within 24 hours of launch, and Song Ultra securing over 60,000 orders in its first month. The broker expects 1Q to mark the trough for full-year sales and earnings, and believes pessimistic market expectations have been fully priced in. China Merchants Securities maintained its Overweight rating on BYD COMPANY (01211.HK) with a TP of HKD130. (ec/w) Auto-translated by AI This article was automatically translated by AI, the original language 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. More Details
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