Consumer Discretionary
Amid the world’s transition to clean energy vehicles, BYD’s middle-of-the-road positioning, strong engineering background in both ICE and battery technology, and long brand track record will allow it to assume the role of Volkswagen or Toyota in the EV era. The US-led protectionism and the rise of Huawei-affiliated EV brands will uniquely help BYD to compete at home with the best and transfer the learnings outwards as a trusted bridge to the world. Both BYD and BYD Electronic International trade near their historical lows in terms of PE band. Blue Lotus initiates coverage with a Buy rating and a TP of HK$350 (65% upside).
Edition: 177
- 12 January, 2024