Among the key news on Hong Kong stocks, BYD Co. Limited (HK:1211) today celebrated the launch of its electric vehicle (EV) factory in Thailand, marking its first factory in Southeast Asia. The company also achieved the milestone of producing its 8 millionth NEV (new energy vehicle) in just over three years. BYD rolled off its 1 millionth EV in May 2021. BYD shares gained nearly 2% in today’s trading session.
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Based in China, BYD Co. is among the leading manufacturers of electric vehicles and batteries in the world.
BYD’s Southeast Aspirations
In recent years, Southeast Asia has emerged as a rapidly growing EV market for Chinese manufacturers. Several Chinese companies have pledged over $1.44 billion to set up factories in Thailand. The Thai government supports this investment, which aims to transition 30% of annual vehicle production to EVs by 2030.
According to market research firm Counterpoint, Thailand is the largest overseas market for BYD, where it holds a 46% share in the country’s EV segment.
BYD’s Thailand plant could produce 150,000 vehicles annually. The factory will assemble batteries and other parts. Thailand also serves as a production hub for BYD to export vehicles to ASEAN countries.
Additionally, BYD is actively pursuing its global expansion efforts, capitalizing on its advanced technology and products and also reducing its dependency on China. Currently, BYD’s new energy vehicles are present in 88 countries and regions worldwide, with passenger car production bases established in Thailand, Brazil, Hungary, and Uzbekistan.
Is BYD a Good Stock to Buy Now?
According to TipRanks, 1211 stock has received a Strong Buy consensus rating, backed by Buy recommendations from all the eight analysts covering the stock. The BYD Co. share price target is HK$298.57, which implies an upside of 30% from the current trading level.
