Nomura believes that with BYD's operation strategy implementation in 2024, including price reductions and the launch of the new plug-in hybrid electric vehicle (PHEV) platform DM-i5.0, its market share in China is expected to further expand.
According to the Wise Finance APP, Nomura released research reports stating a reiterated 'buy' rating for BYD Company Limited (01211) and raised the H-share target price by 23%, from HK$305 to HK$375. Nomura raised BYD's 2024-2026 revenue by 1.1-4.5% and adjusted the corresponding operating profit margin by 0.3-0.4 percentage points. The bank predicts that BYD's shipping volume compound annual growth rate from 2023 to 2026 will be 26%, revenue CAGR will be 19%, and profit CAGR will be 23%.
Considering BYD's latest business developments, Nomura expects the group's electric vehicle shipments to reach 4 million vehicles this year, thus further solidifying its leading position in the Chinese market. In addition, BYD's overseas plans may further support its long-term growth. Nomura believes that with BYD's operation strategy implementation in 2024, including price reductions and the launch of the new plug-in hybrid electric vehicle (PHEV) platform DM-i5.0, its market share in China is expected to further expand.
