BYD COMPANY (01211) shares surged 5.01% in intraday trading, following a bullish research report from Goldman Sachs that highlighted the company's strong growth potential and overseas expansion plans. The investment bank maintained its "Buy" rating on BYD, setting an H-share target price of HK$141.
Goldman Sachs forecasts a compound annual growth rate (CAGR) of 30% in BYD's profits from 2025 to 2028, with overseas profit contribution expected to rise from 21% in 2024 to an impressive 60% by 2028. This optimistic outlook is largely driven by BYD's ambitious target of reaching 1.5 million overseas vehicle sales by 2026, which is anticipated to be a key driver of the company's profit growth.
The report also projects that BYD's sales outside the U.S. could reach between 1.5 and 3.5 million units between 2026 and 2035. This growth is attributed to increased vehicle supply, higher penetration of new energy vehicles, and BYD's competitive product offerings boosting market share. Despite acknowledging uncertainties in domestic demand, BYD plans to unveil key technologies and launch new products in Q1 next year, adopting a more flexible pricing strategy to maintain its market position.