According to the research report released by HSBC, the growth of new energy vehicles continues to outperform the market, and the sales forecast of new energy vehicles for 2021-22 is raised by 13%. Among them, the sales of BYD (01211) passenger cars in May increased by 54% year-on-year and outperformed the growth performance of the mainland automobile market by 38%. It is expected that the growth momentum of new energy vehicles will be stronger, and the “buy” rating will be maintained due to the strong product cycle, The target price rose from HK $340 to HK $350.
According to the report, the company’s revenue forecasts for this year and next year will be raised by 3% and 7% respectively to reflect the sales outlook of new energy vehicles. In addition, it is optimistic about its spin off business, such as IGBT energy semiconductor, which is expected to help release value and lead to revaluation.