[ET Net News Agency, 8 January 2020] Daiwa Research lowered its target price for BYD
Company (01211) to HK$37 from HK$41 and maintained its "hold" rating.
Given a high base in 1H 2019 due to the front-loaded purchase effect amid the NEV
subsidy cut (which took effect on 25 June 2019), the research house expects BYD's earnings
to be under pressure in 1H 2020 but recover in 2H 2020 from a low base.
Daiwa cut its 2019-21 NEV sales growth forecasts for BYD to -2%, 17% and 12% from 17-19%
previously. It expects sales growth momentum for BYD's ICE (internal combustion engine)
segment to remain strong in the coming months (35-44% growth in September-November 2019 to
27-30k units), backed by robust demand for its new model, the Song Pro, which had an
average monthly selling rate of 15k units in September-November 2019. (KL)