＜Research＞Macquarie Raises BYD COMPANY (01211.HK) TP to $300; EU's Levy Clearer

　　Macquarie released a research report stating that its long-term thesis on BYD COMPANY (01211.HK) -1.400 (-0.597%) Short selling $309.37M; Ratio 33.566% remains intact and it is convinced that the company is poised to become the “next Toyota.” The broker expected that BYD will be more active in tapping into overseas markets as the EU tariff issue becomes more evident. In addition, BYD has strategic production flexibility to export or locally produce both BEVs and PHEVs. The broker projected that about 20% of BYD's automobile production capacity may be located overseas in 2030.

　　Given the uncertainty of profitability in the EV industry, investors may view BYD as a safer growth story in 2H24. News of BYD's more aggressive overseas expansion may also underpin a further valuation re-rating of its shares. The broker expected BYD's profit margins to continue to improve in 2H24.

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　　In addition, Macquarie revised up BYD's sales forecast for FY2024 and FY2025 by 5% and 3% respectively, while the GPM forecast was lowered by 1% and 0.6% respectively. This was mainly attributable to the expansion in the mass market portfolio and the tariff issue, which undermined the company's profit margin.

　　Taking the above factors into account, Macquarie raised BYD's H-share target price by 9% to $300, giving it an Outperform rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-04 16:25.)

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