BYD - What next post-earnings and the BoC's stimulus?

9月24日

1211 has had a strong year in growth prospects, reporting solid earnings growth thanks to its robust EV sales and expanding footprint in international markets. The recent earnings beat highlighted an impressive increase in revenue, driven by the demand for both their electric and hybrid vehicles. But what we can notice is that the stock has only reflected this as a c.16% rise in price YTD. However, the question now is: where does BYD go from here?

- More recently, the BoC's latest stimulus measures, including rate cuts and support for the real estate sector, could indirectly benefit BYD. With increased liquidity and consumer confidence, domestic demand for EV's could rise, especially if coupled with additional green energy incentives.

- As for the earnings release, the markets reacted well, and with this new-found optimism in the markets, with both the SEE Composite Index 000001 and the Hang Seng Index HSI up 5.78% and 9.28% in the past 5 days, is this the turn-around for China as a whole?