China’s BYD shares up on Shenzhen energy bus contracts

PUBLISHED : Friday, 08 July, 2016, 12:12pm
UPDATED : Friday, 08 July, 2016, 12:12pm

BYD, China’s biggest electric car maker, hit a more than eight-month high Friday morning after the company announced it won a bid for new energy buses in Shenzhen worth a total of 1.99 billion yuan.

Its shares climbed 1.72 per cent to HK$47.20 as of 11:13am.

The company said on Thursday it had won the bid for two projects, the first for 2,919 new energy vehicles tendered by the Shenzhen Transport Design and Research Institute for the Shenzhen Western Bus Co and a second project for 832 new energy vehicles by the latter company, according to a filing to the Hong Kong Stock Exchange.

The first bid involves three parts for a total of 1.79 billion yuan. Firstly, 296 battery-powered electric buses measuring 8 metres in length, a second batch of 2,228 electric buses that are 10 metres long, and a third round of 395 buses measuring 10 metres long.

The second project tendered by Shenzhen Western Bus Co Ltd was for 832 new energy vehicles and is worth 192 million yuan, the filing said.

The order for the second project is made up of 400 battery-powered electric buses that are 6 metres long and 432 electric buses 7 metres long.

BYD said if the two projects are successful there will be a positive effect on the company’s operating results.

However, it noted the first project, which was tendered by Shenzhen Transport Design Research Institute, is still in the announcement period, so notification of the successful bidder still needs to be issued.