Bank of America Securities: Maintains "Buy" rating on BYD COMPANY (01211) with a target of 2.5 million overseas sales by 2027.

Bank of America Securities has released a research report maintaining a "Buy" rating on BYD COMPANY (01211) with a target price of HKD 124. The report indicates that BYD Company Limited's overseas sales momentum remains strong, with management guiding that overseas monthly sales will be maintained at 180,000 to 200,000 units in the second half of this year, and a quarter-on-quarter improvement is expected in the third quarter. Driven by an increase in overseas market share and electric vehicle penetration, the company aims to achieve overseas sales of 2.5 million units by 2027. The bank anticipates that the company will enhance the specifications and performance of more electric vehicle models, along with support for export demand in 2026. The report notes that BYD Company Limited is accelerating the localization of its overseas production capacity, with its Hungary plant expected to start production in November to December, while production has already commenced in Indonesia, and the target annual capacity in Brazil is set at 300,000 units. Management stated that overseas local production is currently characterized by low utilization rates and operational efficiency due to ramp-up periods but expects better economic benefits within two years as logistics costs and tariffs are reduced. Management indicated that the current net profit per vehicle for overseas models exceeds RMB 20,000 and is expected to remain relatively stable during the rapid expansion phase. This will significantly improve once the expansion of overseas channels is completed and more high-end models are launched. Even with the reduction of export VAT rebates for new energy vehicles, the company remains confident in maintaining its competitiveness through technology, brand, and ecological advantages, enabling it to pass on rising costs and continue to increase market share.