Credit Suisse: byd shares to outperform market rating target price of HK $380

2022-04-26 0 By

Credit Suisse issued a research report that maintained BYD shares (01211) target price of HK $380, equivalent to 2022 forecast p/E ratio of about 158 times, rating “outperform the market”, optimistic about its long-term development prospects.Byd is expected to cut costs by adjusting prices and reducing dealer subsidies, given margin pressure from falling government subsidies and rising battery raw material prices.Byd’s January sales rose 125 per cent year on year to 95,400 units, beating the bank’s forecast of about 85-95, 000, but fell 4 per cent month on month, mainly due to fewer selling days during the Lunar New Year, the report said.’BYD’s hybrid car sales hit a new high during the period,’ the bank said. ‘We expect the xi ‘an plant production to return to normal.’In addition, “Dolphin” pure electric car sales also increased by 6%, a new high.Byd recently announced an across-the-board price increase of between 1,000 yuan and 7,000 yuan, effective Feb. 1, expected to offset the negative impact of government subsidy cuts and rising battery raw material costs, the report said.Management expects battery production of 90 to 100GwH this year and believes byd could supply tesla’s (tsla.us) factories in Europe.