Among the major news on Hong Kong stocks, BYD Co. Limited (HK:1211) achieved record-breaking new energy vehicle (NEV) sales in June 2024. The company sold 341,658 NEVs in June, marking a 35% growth year-over-year and a 3% jump over the previous month. With this growth, the company broke its previous record of 341,043 NEVs in December 2023. BYD shares are trading down by 2% as of writing.
Based in China, BYD Co. stands as one of the foremost global manufacturers of EVs (electric vehicles).
Meanwhile, the company’s competitors, NIO Inc. (HK:9866) and Li Auto, Inc. (HK:2015), also posted solid growth in their June vehicle sales. NIO reported a 98.1% year-over-year growth in sales of 21,209 vehicles in June. Li Auto delivered 47,774 vehicles in June 2024, registering a 46.7% year-over-year increase.
BYD’s June Performance
In June, BYD sold 340,211 passenger cars and 1,447 commercial vehicles. The company’s strong price cuts on popular models, like Seagull (BYD’s most affordable EV) and Seal, have driven higher sales.
Launched in April 2024, BYD marketed Seagull as its most affordable model. Seagull’s sales grew by 57% year-over-year to 36,066 units. The company sold 24,407 BYD Seal units in June, marking a 200.06% increase year-on-year and a 70.55% rise from May.
Speaking of the first-half performance, BYD sold 1,612,983 units of NEVs, which was 28.5% higher on a year-over-year basis. This growth came as a relief for investors, given the slowdown in the company’s sales in the first quarter of 2024. In Q1 2024, BYD reported a 43% drop in sales compared to the previous quarter.
Is BYD Stock a Good Buy?
Analysts maintain a highly bullish stance on BYD stock. Last week, CGS-CIMB analyst Ray Kwok confirmed a Buy rating on the stock, predicting an upside of 49%. Kwok is confident about the company’s NEV sales growth, including the prospects for plug-in hybrid EVs in emerging markets. He also believes that BYD’s shift in sales strategy, with a greater focus on technological advancements and new market segments rather than price cuts, will drive more growth for the company.
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by nine Buy recommendations. The BYD Co. share price target is HK$293.04, which implies an upside of 26.3% from the current trading level.
