BYD Shares Drop 5% After H1 Profit Falls 20.5% on China EV Competition
Updated
Updated · CNBC · Aug 31
BYD Shares Drop 5% After H1 Profit Falls 20.5% on China EV Competition
1 articles · Updated · CNBC · Aug 31
Summary
BYD stock fell nearly 5% in Hong Kong after the automaker’s interim results showed first-half net profit attributable to shareholders dropped 20.5% to 12.3 billion yuan.
344.8 billion yuan in first-half revenue marked a 7.1% decline, as BYD cited sluggish domestic demand, fierce price competition and higher commodity, raw-material and chip costs.
Second-quarter net profit still rose 30% year on year to 8.2 billion yuan, but revenue slipped 3% to 194.6 billion yuan, pointing to pressure on margins even as earnings improved sequentially.
792,000 exported vehicles in the first half—up 67.8%—helped offset weakness at home, while premium and off-road brands including Denza, Yangwang and FANGCHENGBAO lifted combined sales 61%.
Citi expects third-quarter core earnings of 13.5 billion yuan and full-year net profit of 41.2 billion yuan, about 8% above consensus, suggesting investors still see a rebound despite the selloff.