Nomura: Maintains "Buy" rating on BYD Company (01211) with a target price of HK$496.

Nomura released a research report stating that it maintains a "buy" rating on BYD COMPANY (01211) with a target price of HK$496. BYD Company Limited announced the sale of nearly 130 million H shares, raising a net amount of approximately HK$43.38 billion. Nomura believes that its balance sheet remains at a healthy level, and the dilutive effect and discount impact from the share placement are limited. Nomura pointed out that BYD Company Limited had previously conducted placements in the A-share market in 2015-2016 and in the Hong Kong stock market in 2020-2021. The goals of both placements were to develop its new energy vehicle business in the Chinese market. Considering its strong capacity domestically, the proceeds from this placement are expected to be used for overseas expansion, including providing additional funds for the plan to establish six overseas factories in the next two years. The bank noted that as long as BYD Company Limited continues to achieve growth in delivery volume in the future, the investment theme will not change.