BYD Rises After Analyst Doubles Price Estimate: Beijing Mover
2012-02-22 Leave a comment
BYD rose 4 percent to HK$25.90, the highest since Aug. 2, at the 4 p.m. close of trading. Hong Kong’s benchmark Hang Seng Index fell 0.1 percent. BYD’s shares in Shenzhen gained 3.3 percent to 24.81 yuan.
Sales of the carmaker’s new S6 and G6 models have performed well and may foreshadow “new robust growth” for BYD, Zhang Jing, an analyst at Phillip Securities, wrote in a report dated yesterday. Zhang cited “rapid growth expectations” for the Shenzhen-based company’s new-energy vehicles as a reason for raising Phillip Securities’ share-price estimate for the Hong Kong-traded shares to HK$25.20 from HK$11.30 and upgrading its rating on the stock to “neutral” from “reduce.”
BYD’s sale of a stake in a producer of photoelectric material, from which it gained 430 million yuan ($68 million), should also help bolster 2011 earnings, Zhang wrote. This year, the company plans to debut new models of its F3 and F6 cars, according to Zhang. Its overall vehicle sales may increase 10 percent to 500,000 in 2012, Zhang wrote.
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