BYD shares slide as fierce China competition dents first-half earnings
BYD shares slid after the automaker released its latest results on Friday, despite higher second-quarter profit and overseas growth.
TL;DR
- BYD shares fell nearly 5% in Hong Kong after the release of its interim results.
- Second-quarter net profit increased by 30% year-on-year to 8.2 billion yuan, while revenue decreased by 3% to 194.6 billion yuan.
- First-half revenue dropped 7.1% year-on-year to 344.8 billion yuan, and net profit attributable to shareholders fell 20.5% to 12.3 billion yuan.
- Factors affecting performance include sluggish domestic demand, robust export growth, fierce competition, and rising costs for commodities, raw materials, and chips.
- BYD's exports rose 67.8% year-on-year to 792,000 vehicles in the first half.
- Domestic brands such as FANGCHENGBAO, Denza, and Yangwang grew 61% year-on-year, contributing 12.8% to the group's passenger vehicle sales.
- Citi expects BYD's third-quarter core earnings to reach 13.5 billion yuan and full-year net profit to be 41.2 billion yuan.