BYD (1211) Earnings Surge with March Vehicle Sales Hitting 302,459 Units, Revealing a 46% Yearly Increase

BYD on Smartkarma

BYD, a Chinese automaker, has been receiving positive coverage from top independent analysts on Smartkarma, an independent investment research network. According to Ming Lu‘s report titled “BYD (1211 HK): Strong Revenue in 2023 and to Change Strategy in 2024″, the company’s total revenue is expected to increase by 42% in 2023, with a significant improvement in gross margin. The report suggests that BYD will shift its focus from low-priced vehicles to developing new models. This sentiment is echoed in Ming Lu‘s other report “BYD (1211 HK) 2023 Earnings Preview: Strong Top Line and Bottom Line”, where it is estimated that net profit will increase by 100% in 2023. With an upside potential of 54%, the report recommends a “Buy” for BYD with a price target of HK$304.

In another report, “China Consumption Weekly (5 Feb 2024)”, Ming Lu highlights BYD‘s strong performance in 2023, with an estimated 74-86% increase in net profit. The report also mentions the success of Li Auto, another Chinese EV manufacturer, with a 106% year-on-year increase in deliveries in January 2024. Additionally, there are rumors that e-commerce giant Alibaba will be selling its supermarket brand, RT-Mart.

Henry Soediarko‘s report “BYD Vs Tesla: Part Deux” compares the performance of BYD and Tesla, and suggests that BYD has surpassed Tesla as the top EV maker in December 2023. The report also mentions Tesla’s temporary suspension of work at its Berlin factory due to tensions in the Red Sea, while BYD‘s supply chain remains in China. Despite this, BYD is trading at a deep discount compared to Tesla based on key metrics such as PEG, PER, and PBR.

A look at BYD Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

BYD Company Limited has a bright future ahead, according to the Smartkarma Smart Scores. With an overall score of 4 out of 5, the company scores high in terms of growth, resilience, and momentum, indicating a positive long-term outlook.

As a company that manufactures and sells automobiles, BYD is also involved in the research, development, and production of batteries for various electronic devices. This diversification allows BYD to remain resilient in the face of changing market conditions. With a score of 2 for both value and dividend, BYD may not be the most financially attractive option, but its strong growth potential and overall solid performance make it a promising investment for the future.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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