[ET Net News Agency, 31 March 2021] Daiwa Research trimmed its target price for BYD
Company (01211) to HK$235 from HK$290 and maintained its "buy" rating.
The research house lowered its 2021-22 EPS forecasts by 18-31% due to the weak 1Q 2021
profit guidance with likely margin weakness.
Daiwa noted that BYD targets CNY200-300m in net profit for 1Q 2021, significantly lower
than the CNY821m net profit for 4Q 2020, due to upstream raw material price hikes.
Meanwhile, it plans to fully launch NEVs with a blade LFP battery from April and is
currently clearing its NCM battery inventories. Daiwa thinks the NCM battery inventory
clearance would also likely impact its gross margin. (KL)