Strong November NEV sales reaffirming our positive view

<News alert>: Strong November NEV sales reaffirming our positive view

  • Strong NEV sales growth of 82% y-o-y in Nov-21 despite industry challenges
  • Leading ahead of peers in NEV development with several strong models in the pipeline
  • Comprehensive solutions and capabilities in key components production enable BYD to drive future earnings growth
  • Maintain BUY with TP of HK$360

What’s new?

Nov-21 total vehicle sales surged 82% to 98,340 units, as shown in the chart below. The strong sales momentum has been maintained since Jul-21. This brings 11M21 total vehicle sales to about 641,000 units, achieving sales growth of c.73% y-o-y.

BYD strategy to target the younger car buyers is positioning the company to gain a strong foothold in the highly competitive NEV market. The company’s new models such as the BYD Yuan PLUS (latest 3.0 design), Song Pro-DM-i and Yuan Pro EV are new attempts to expand its customer reach, leveraging on its strength in DM-i hybrid, battery and semiconductor technology to stay ahead of peers. 

The company intends to bring a new high-end brand into the market in 1H22 to further enhance its competitiveness. Besides, BYD is also accelerating its overseas penetration to venture in to the Latin America markets. 

The strong vehicle sales performance is reaffirming our positive view of the company and BUY rating. Our TP is HK$360.