First Read: BYD Company Limited "Takeaways from Shenzhen Headquarters" (Buy)

Research evidence excerpt

First Read: BYD Company Limited "Takeaways from Shenzhen Headquarters" (Buy)

Global Research

9 June 2026ab

First Read

EquitiesBYD Company Limited

Takeaways from Shenzhen Headquarters China

Automobile Manufacturers

12-month rating Buy

Attending investors meeting

We visited BYD headquarters at Pingshan, Shenzhen, and attended its investors 12m price target HK$128.00

meeting. Key takeaways include: 1) domestic orders are recovering but there is battery

capacity bottleneck; 2) overseas sales are likely to exceed 50% growth for full year; and

Price (09 Jun 2026) HK$88.40

3) the company targets overseas markets with high purchasing power and pushes for

further localisation. RIC: 1211.HK BBG: 1211 HK

Trading data and key metrics

Domestic battery bottleneck

52-wk range HK$140.80-88.05

After lightning charge technology launch in March, the company has continuously seen Market cap. HK$806b/US$103b

strong order recovery from the domestic market. The demand outpaced supply as

Shares o/s 9,117m (ORD)

second generation battery capacity now becomes the bottleneck. The company is

Free float 75%

currently modifying blade battery capacity at the rate of up to 30k units EV equivalent

Avg. daily volume ('000) 30,837

volume each month to cope with the demand.

Avg. daily value (m) HK$3,116.5

Overseas high-quality growth Common s/h equity (12/26E) Rmb282b

P/BV (12/26E) 2.5x

Overseas demand has been ahead of its earlier expectation, and currently management

sees upside potential to 50% growth for the full year. The company focuses on markets Net debt to EBITDA (12/26E) NM

with high purchasing power. Europe is seeing more than doubling growth year-to-date, EPS (UBS, diluted) (Rmb)

with the latest monthly run rate at 7-8k in UK, 3-4k in Germany, 4-5k in Italy and c4k in UBS Cons.

Spain.