Goldman Sachs: Raise the target price of BYD Company (01211) to 437 Hong Kong dollars, maintain "buy" rating.

Goldman Sachs released a research report stating that it has raised the target price for BYD Company Limited (01211) from HK$415 to HK$437, maintaining a "buy" rating. The bank believes that the strong new car model cycle this year and the introduction of new technologies such as "Sky Eye" and "Super e-platform" will continue to drive sales and profits for BYD Company Limited, further pushing up the stock price. The bank estimates that BYD Company Limited is expected to achieve sales of 5.5 million vehicles this year, a year-on-year increase of 29%, with 4.9 million vehicles coming from the domestic market. Based on the assumption of Shanxi Guoxin Energy Corporation's total vehicle sales of 14 million and BYD Company Limited maintaining a 35% market share, overseas markets will contribute 600,000 vehicles. The bank expects BYD Company Limited to improve its gross margin and net profit margin and the company's continuous cost reductions and economies of scale will help offset market competition pressure.