Chinese automaker BYD Co Ltd’s BYDDF Shenzhen-listed shares soared 10% on Wednesday.
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 per cnEVpost, 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 as Nio Inc NIO and also Tesla Inc TSLA.
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Photo: Courtesy of BYD
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