Daiwa Securities raised its target price on BYD Stock traded in Hong Kong by 13.9 percent to HK$435 from HK$382. The Company maintains its Buy rating.
The brokerage said it raised its 2022-2023 earnings per share estimate due to BYD’s strong new energy vehicle (NEV) product pipeline and reliable external battery shipment outlook, according to a research note shared by zhitongcaijing.com.
BYD closed up 5,74 percent to HK$317 in Hong Kong.
Daiwa Securities said BYD has a strong outlook for NEV shipments, and by 2022, BYD plans to launch 10 new models, including Yuan PLUS EV, Seagull BEV, B-segment BEV SUV, F5 DM-i, and Song Pro DM-i.
The company has a strong pipeline of new product models, as well as current orders for the DM-i at 170,000 units, which bodes well for sales in 2022, according to Daiwa Securities.
BYD Chairman and President Wang Chuanfu said on November 19 that demand for models on BYD’s DM-i platform is outstripping supply. Orders on hand for up to 200,000 units, and that delivery of those models is now up to four months away.
Daiwa Securities also raised BYD’s sales forecast by 13 percent to 942,000 units in 2022 and raised it by 26 percent to 1.2 million units in 2023.
BYD Investors are already having a great year so far with the Stock up 42% YTD.
Daiwa Securities believes that in addition to Tesla, more car companies will target BYD’s LFP batteries, and the company is expected to unlock the value of its battery business in 2022-2023.