01211 Should I Buy

CLSA's analyst rating for BYD COMPANY is based on several key factors. They noted that BYD has returned to a strong position in terms of economies of scale and highlighted the company's "disruptive" fast-charging technology and the launch of its second-generation blade battery. These advancements are expected to enhance BYD's technological edge over competitors. Additionally, CLSA believes that BYD's strong capability in commercializing research and development will help mitigate cost increases. In the context of industry challenges such as cost inflation and weak demand, CLSA views BYD's strategy of focusing on technological leadership rather than engaging in a price war as a means to regain lost market share. This strategy is seen as a pathway to improving BYD's export prospects, leading to CLSA's optimistic outlook and the reiteration of a High-Conviction Outperform rating with a target price of HKD130.