In a report released yesterday, Ken Lee from UOB Kay Hian maintained a Buy rating on BYD Co (BYDDF – Research Report), with a price target of HK$510.00.
Ken Lee has given his Buy rating due to a combination of factors, primarily driven by BYD Co’s strong financial performance in the fourth quarter of 2024. The company reported a significant increase in net profit, which rose by 73% year-over-year and 29% quarter-over-quarter, surpassing market expectations. This impressive growth was attributed to higher sales volumes and improved profit margins, indicating robust operational efficiency and economies of scale.
Furthermore, BYD’s management has set ambitious sales targets for 2025, aiming to sell between 5.5 million to 6.0 million units while maintaining steady net profit per vehicle. This optimistic outlook, combined with raised profit forecasts for the coming years, supports the decision to increase the target price for BYD’s stock. Overall, the positive earnings results and strategic growth plans underpin Ken Lee’s confidence in BYD’s future performance, justifying the Buy rating.
In another report released on March 25, J.P. Morgan also maintained a Buy rating on the stock with a HK$600.00 price target.