JP Morgan said BYD (01211.HK) beat Q2 expectations and highlighted its long-term
strategy. The bank remains cautious on the China auto sector and favors scaled,
diversified, globally positioned OEMs, picking BYD and Geely (00175.HK). It
prefers heavy-truck exposure (eg, Sinotruk 03808.HK) over passenger-car names.
JP Morgan expects BYD’s per-vehicle profitability to stay resilient in H2,
forecasting about 10,000 yuan per vehicle in Q4, and sees overseas per-vehicle
profit—currently around 20,000 yuan—rising as capacity in Hungary, Indonesia and
Brazil ramps. The bank maintains an overweight rating on BYD H shares with a
HK$124 target and reiterates an overweight on BYD A shares with a 124 yuan
target.
