BYD - What next post-earnings and the BoC's stimulus?

2024年9月24日

1211 has had a strong year in growth prospects, reporting solid earnings growth thanks to its robust EV sales and expanding footprint in international markets. The recent earnings beat highlighted an impressive increase in revenue, driven by the demand for both their electric and hybrid vehicles. But what we can notice is that the stock has only reflected this as a c.16% rise in price YTD. However, the question now is: where does BYD go from here?

- More recently, the BoC's latest stimulus measures, including rate cuts and support for the real estate sector, could indirectly benefit BYD. With increased liquidity and consumer confidence, domestic demand for EV's could rise, especially if coupled with additional green energy incentives.

- As for the earnings release, the markets reacted well, and with this new-found optimism in the markets, with both the SEE Composite Index 000001 and the Hang Seng Index HSI up 5.78% and 9.28% in the past 5 days, is this the turn-around for China as a whole?

3月5日

交易進行

Looking back to when I first recommended BYD shares, the company has seen some notable efforts to bolster returns:

- Raises $5.6bn through share placement for their HK listing, showing their ability to fund expansion, likely in production capacity and technological innovation.

- Launch of affordable (€28,990) electric SUV in France, showing their aggressive pricing strategy to penetrate the European market.

- Integration of advanced driver assistance tech, using DeepSeek AI (probably the most exciting release for investors recently)

- First solid state battery production, promising greater energy density, faster charging, and improved safety compared to traditional lithium-ion.


The investment case is still a solid one. Would I be buying more shares now? No. Would I hold on to all the shares I have? Yes! I fully believe that BYD can become to "Toyota" of the EV market.