LI - BYD: Solid EV Company Let Down By Challenging Times

2024-02-14 11:41:45 ET

Summary

• China's big EV company, BYD Company Limited, might have become the biggest EV seller in 2023, but its price has shown weakness over the past year.
• A small downward revision to its profit forecast for 2023 may well reflect the impact of the price wars underway in the sector and put margins at risk.
• Sales growth has also seen a relative slowdown in January, and this can continue, going by softer forecasts and indications of weakness in China's consumer economy.
• While these developments make the outlook for BYD somewhat cloudy for 2024, the company has a lot going for it, including still robust financials and competitive market multiples, making it one to watch.

Despite trumping electric vehicles [EVs] biggie Tesla, Inc. ( TSLA ) to become the biggest EV seller in 2023, China’s BYD Company Limited ( BYDDF ) hasn’t seen positive price movements in recent times. It’s down by ~13% year-to-date [YTD], and its fall over the past year has been even bigger (see chart below)....

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