BYD stock logs best rally since March after Tesla rival flags potential tripling in earnings as sales defy economic gloom
- BYD shares have risen almost 10 per cent over two days, the best rally since mid-March, after profit alert
- Chinese carmaker overtook Tesla as the biggest EV maker by unit sales in June
BYD Co, China’s biggest electric-car maker backed by Warren Buffett’s Berkshire Hathaway, logged the biggest winning streak in four months in Hong Kong after telling investors earnings could triple as sales defied a slowdown in the economy.
The stock jumped as much as 6.7 per cent to HK$302 before closing at HK$294.20. An almost 10 per cent rebound over two days is the best since mid-March. The stock has risen 10 per cent this year in Hong Kong and 26 per cent in Shenzhen.
Net profit could jump to between 2.8 billion yuan (US$414 million) and 3.6 billion yuan for the six months to June 30, versus 1.17 billion yuan in the same period a year earlier, the Shenzhen-based carmaker said in an exchange filing. Sales showed strong momentum, among other reasons, it added.
“Despite various adverse factors such as macroeconomic downturn, spread of the pandemic, shortage of chips and continuous increase in raw material prices, the new energy vehicle industry performed well,” BYD said. Sales volume repeatedly hit record highs and market share was far ahead of rivals, it added.
The resilience helped BYD overtake Tesla as the world’s biggest electric vehicle producer. It sold about 641,000 new energy vehicles in the first six months of this year, an increase of more than 300 per cent from a year earlier, according to a July 5 filing by the company. Tesla delivered about 564,000 units in the same period.