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| HSI1 | 24,186.83 | +124.11 | 178.21B |
| HSCEI1 | 8,128.25 | +24.98 | 60.40B |
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2026-10-15 13:33:38 Citi published a research report stating that it expects BYD COMPANY (01211.HK)'s third-quarter net profit (excluding foreign exchange impact and contribution from BYD Electronic) to reach RMB12.95 billion. Supported by strong free cash flow, the results may trigger short covering in the market. Citi maintained its Buy rating on BYD COMPANY, with an H-share TP of HKD142. The broker believes there are three factors that could help establish a valuation floor for BYD COMPANY and potentially create pressure on bearish positions in the market: (1) elimination of policy uncertainty: over the past week, two major headwinds have been removed - the China-Europe plug-in hybrid vehicle agreement statement has provided near-term relief, while the export tax rebate reduction policy has finally been announced. Meanwhile, market expectations for weak China demand in 4Q26 have already been largely priced in, with domestic EV sales in 4Q26 expected to decline 11.3% YoY; (2) limited downside risk for Western Europe exports in FY2027: although hybrid vehicle quotas may be capped at 350,000 units, the broker expects China's EV exports to Western Europe in FY2027 to remain broadly flat YoY, mainly driven by local production capacity rising to 400,000 units from 90,000 units in FY2026. Given that total EU production capacity may exceed 600,000 units, this remains a conservative estimate; (3) FY2027 export and domestic market outlooks are less pessimistic: assuming YoY retail growth rates for NEVs and internal combustion engine vehicles (ICE) of flat and down 24% respectively under a bearish scenario, and YoY export growth rates for NEVs and ICE vehicles of up 45% and up 10% respectively under the base-case scenario, the broker forecasts FY2027 passenger vehicle wholesale volume to grow 5.9% YoY, outperforming market consensus expectations for an approximately 5% YoY decline. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com 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. | |