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<Research>CLSA: BYD COMPANY's Production Cut Can Reduce Inventory Overhang; TP $161
BYD COMPANY (01211.HK) is reportedly paring back its production capacity at some of its factories in Mainland China, a research report by CLSA indicated. The company shattered the ...
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<Research>CLSA: BYD COMPANY's Production Cut Can Reduce Inventory Overhang; TP $161
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BYD COMPANY (01211.HK)  -1.600 (-1.273%)    Short selling $496.61M; Ratio 18.358%   is reportedly paring back its production capacity at some of its factories in Mainland China, a research report by CLSA indicated. The company shattered the rumor, explaining it is merely adjusting production during the off-season.

However, CLSA believed this move came as no surprise, as BYD's factories have a monthly capacity of about 500,000 vehicles, while recent output has been around 300,000-400,000 vehicles. The broker assumed the production cut can help the company and the industry’s efforts to reduce inventory overhang.

Related NewsHSBC Research Views BYD COMPANY (01211.HK) Has Multiple Advantages, Reiterates Buy Rating
Furthermore, during a recent dealer meeting, BYD proposed a subsidy amount for dealers of about HKD700-800 million, excluding exports and direct sales, which was below the street consensus of HKD1 billion. This may impact 2Q profits. The broker set a target price of HKD161 and a High-conviction Outperform rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-27 12:25.)

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