Citigroup: Maintains "buy" rating on BYD COMPANY (01211) with a target price of HK$688.

Citigroup released a research report stating that it maintains a buy rating on BYD COMPANY (01211) with a Hong Kong stock target price of 688 yuan. BYD Company Limited has recently sold nearly 130 million shares in Hong Kong, which is expected to result in about 4.1% of share dilution. The funds raised are expected to be mainly used to support overseas expansion, research and development, supplement operating funds, and general corporate purposes. Citigroup predicts that BYD Company Limited will achieve annual overseas asset returns of 16.2%, 22.5%, and 28.7% from 2025 to 2027. Citigroup believes that the equity financing by BYD Company Limited this time will bring positive impact. Although the company has a large amount of free cash flow and net cash domestically, converting funds into foreign currencies is not flexible and costly. Raising funds through Hong Kong stock placement is a flexible approach. The bank also stated that BYD Company Limited has the ability to invest heavily in artificial intelligence and the early stages of development of Siasun Robot & Automation, while also being able to continue large-scale overseas expansion, maintaining its position as a top choice in the industry alongside GEELY AUTO (00175).