BYDDY - BYD Reports Massive Profit Surge

Summary

• BYD stock jumped as much as 7% in the Hong Kong trading session after the company reported that net income for Q3 2022 could jump 365% versus Q3 2021.
• BYD's strong results defy a depressed economy in China and clearly highlight the resiliency of BYD's business model.
• But BYD's growth story is far from over. In fact, the company has only recently started to expand in international markets, including Europe and South East Asia.
• Following an unexpected strong Q3, I upgrade my residual earnings model for BYD to account for preliminary conensus EPS upgrades.
• I now calculate a fair implied share price of $69.35 versus $66.50 prior (BYDDY reference).

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