Goldman Sachs has raised its forecast for BYD Company (01211) net income from 2024 to 2026 by 1% to 6%.
Zhitong Finance and Economics APP learned that Goldman Sachs released a research report stating that it maintains a "buy" rating for BYD Company (01211", with the current expectation that third quarter sales will increase by 10% to 1.09 million units, and the gross margin is expected to rise from 18.7% in the second quarter to 19.7%. It has also raised the net income forecast for 2024 to 2026 by 1% to 6%, and the target price has increased by 5% to 310 Hong Kong dollars.
The company's sales volume continues to grow, with a 35% year-on-year increase in sales in August to 0.371 million units, reaching a historical high. It is believed that this growth comes from the increased delivery volume of new car models launched since May. Looking ahead, Goldman Sachs expects BYD to continue to launch at least 6 new car models within the remaining year, initiating deliveries to support further monthly sales volume increase, leading to the upward revision of the full-year delivery forecast from 3.8 million units to 4 million units. Goldman Sachs believes that with the continuous expansion of scale, combined with the shift of auto production to adopt more DM5.0 new technologies and high-quality models, BYD's profit margins and scale benefits will continue to improve.