BYD Beats Q3 Analyst Expectations; HSBC Cuts Price Target But Cites Continued Growth
Portfolio Pulse from Daniel Harrison
BYD Company Limited reported Q3 2023 earnings that beat analyst expectations, with sales of 162 billion RMB ($22.1 billion), a 38.49% improvement YoY, and net profit of 9.7 billion RMB, up 81% YoY. Despite the strong performance, HSBC cut its price target for BYD by 4% due to increased A-share and H-share spread, but maintained its Buy rating. HSBC also predicts Q4 earnings will rise and forecasts an additional increase in earnings growth of 7-16% for the 2023-2025 period.

October 30, 2023 | 5:52 pm
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NEUTRAL IMPACT
Li Auto is mentioned as a competitor in the EV market where companies are slashing costs to attract consumers.
Li Auto is mentioned as a competitor in the EV market, but the news does not directly impact Li Auto's stock. The cost-slashing trend in the EV market could potentially affect Li Auto's margins.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Nio is mentioned as a competitor in the EV market where companies are slashing costs to attract consumers.
Nio is mentioned as a competitor in the EV market, but the news does not directly impact Nio's stock. The cost-slashing trend in the EV market could potentially affect Nio's margins.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Tesla is mentioned as a competitor in the EV market where companies are slashing costs to attract consumers. Tesla's earnings are used as a benchmark for BYD's earnings discount.
Tesla is mentioned as a competitor in the EV market, but the news does not directly impact Tesla's stock. Tesla's earnings are used as a benchmark, indicating its strong position in the market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
XPeng is mentioned as a competitor in the EV market where companies are slashing costs to attract consumers.
XPeng is mentioned as a competitor in the EV market, but the news does not directly impact XPeng's stock. The cost-slashing trend in the EV market could potentially affect XPeng's margins.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
BYD's Q3 earnings beat expectations, with significant YoY growth in sales and net profit. Despite a price target cut by HSBC, the bank maintains a Buy rating and predicts further growth.
BYD's strong Q3 performance and HSBC's continued Buy rating, despite a price target cut, indicate positive short-term impact. HSBC's prediction of further growth also suggests potential upward movement.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100