Lyon: BYD's advanced technology leading strategy helps regain market share, reiterates "highly confident of outperforming the market" rating.

The report published by Lyon pointed out that BYD is returning to its expertise in economies of scale and comfort zones. It is believed that the disruptive fast charging technology and the launch of the second-generation blade battery will widen the technology gap with its industry peers. Given BYD's leading capabilities in research and commercialization, cost increases are expected to be limited. The report states that industry cost inflation and weak demand indicate that car companies are approaching the edge of survival, so it is expected that BYD's alternative price war strategy will help it regain lost market share from last year and pave the way for the firm's outlook on BYD's exports. The report reiterated its "highly confident of beating the market" rating for BYD, with a target price of 130 Hong Kong dollars.