CICC Leo: Raises target price of BYD COMPANY (01211) to 443 Hong Kong dollars, rating upgraded to "highly confident" and "outperform the market"

CLSA released a research report, raising the target price of BYD Company (01211) to 443 Hong Kong dollars and the A-share target price to 446 Chinese yuan, maintaining an "outperform the market" rating. However, this rating upgrade is now "highly confident" to "outperform the market". CLSA believes that the smart driving products that BYD Company Limited will launch on February 10 will provide short-term catalysts. More importantly, it is believed that the company's ambition to provide reasonably priced autonomous vehicles will open up a new battlefield for electric vehicle competition, targeting large foreign ICE vehicle brands and domestic competitors in the mass market. It is estimated that by 2025, the total penetration rate of BYD Company Limited's autonomous driving (L2+) will increase to about 40%. Financially, CLSA believes that the smart features will provide potential price competitiveness for BYD Company Limited, and it is expected that the profitability per vehicle will increase to 12,000 yuan by 2026.