Date of Report

October 1, 2024

Broker Name

CGS International Securities

Company Overview

BYD is a prominent company in the automotive sector, recognized as a leading manufacturer of electric vehicles (EVs) and batteries in China.

Current Market Position

• Current Market Capitalization: HK$ 119.5 billion
• Current Price: HK$ 345.0
• Target Price: HK$ 283.8

Analyst Recommendation

• Recommendation: Add
• Expected Return: The stock’s total return is anticipated to exceed 10% over the next 12 months.

Financial Projections

• Forward P/E (2024): 22.1
• Forward P/E (2025): 18.3

Strategic Outlook

The report highlights that BYD is well-positioned to benefit from the recent government policies aimed at promoting electric vehicles and sustainable energy solutions. With increasing demand for EVs driven by environmental concerns and supportive government initiatives, BYD’s strong market presence and innovative technology are expected to fuel its growth.

Risks and Considerations

Investors should consider potential risks such as increasing competition in the EV market, fluctuations in battery material costs, and regulatory changes that may impact production and sales.

Summary

BYD is presented as a strong investment opportunity within the automotive sector, bolstered by favorable policies and its leadership in electric vehicle manufacturing. The anticipated growth in demand for electric vehicles positions BYD for significant success, making it an attractive option for investors.