Warren Buffett-Backed Nio Rival Automaker Shoots Up 10% In China: What's Going On?

Benzinga2021-08-04

Chinese automaker BYD Co Ltd’s BYDDF Shenzhen-listed shares soared 10% on Wednesday.

What’s Moving? Shares ofBerkshire Hathaway Inc(NYSE:BRK-A) (NYSE:BRK-B) Chairman Warren Buffett-backed BYD, which have risen 58.6% so far this year in Shenzhen, closed at RMB 308.09 on Tuesday.

The OTC-listed shares of BYD, which have risen 25% so far this year, had closed 0.17% higher at $66.10 on Tuesday.

Why Is It Moving? As percnEVpost, the latest research note from brokerage Huachang Securities claims BYD could clock a million vehicle sales in 2023. The annual estimate for the current year is 600,000 vehicles and 820,000 vehicles in 2022.

The brokerage estimates BYD's market capitalization is heading toward RMB 1 trillion ($155 billion) on the back of strong fundamentals including its auto business which could exceed $62 billion soon.

The brokerage has maintained a "Strongly Recommended" rating on BYD and raised the target price of BYD's A-share in China to RMB 360.7.

BYD has been focusing on switching to a fully electric vehicle lineup and its current new energy vehicle portfolio consists of cars, buses, and trucks. The automaker is expected to clock around 20,000 pure electric vehicles in July, as per the report.

BYD’s battery-powered electric vehicle sales number is the metric most-suited for like-to-like comparison with Chinese peers such asNio IncNIOand alsoTesla Inc TSLA.

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精彩评论

  • Dalex1212
    2021-09-11
    Dalex1212
    I think byd will be getting more attention to more investors in the next few years. Reason is strong sales growth n profits. I agree with the assesment the price should double if not more from the current price of $265hk. Cheers
  • rikoh07
    2021-08-04
    rikoh07
    BYD. [龇牙] 
  • pch1985
    2021-08-04
    pch1985
    Still prefer NIO
  • JDO
    2021-08-04
    JDO
    Like please! 
  • TemplarDon
    2021-08-04
    TemplarDon
    Cool like and comments 
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