HK Stock Market Move | BYD COMPANY (01211) rose nearly 5% after its performance, with gross profit margin improvement after excluding exchange rate disturbances. JP Morgan expects sales to accelerate from the second quarter.

BYD COMPANY (01211) rose nearly 5% after its performance announcement, reaching a 3.38% increase at the time of publication, at 107.2 Hong Kong dollars, with a turnover of 24.48 billion Hong Kong dollars. On the news front, BYD COMPANY announced its performance, with first-quarter revenue of 150.225 billion yuan; net profit attributable to shareholders of the listed company was 4.85 billion yuan, a year-on-year decrease of 55%. JPMorgan Chase pointed out that excluding around 2 billion yuan in exchange losses, the company's gross profit margin actually improved. The net profit per vehicle in the first quarter was about 8,900 yuan, not only higher than the 6,800 yuan in the same period last year, but also basically the same as the 8,800 yuan in the fourth quarter of last year; the gross profit margin also improved by 140 basis points to 18.8% on a quarter-on-quarter basis. JPMorgan Chase expects that the first quarter is the trough of this round of the profit cycle, and sales will accelerate from the second quarter, with second-quarter sales expected to grow by about 60% compared to the previous quarter, significantly higher than the industry's seasonal average of 25%-30%; the importance of overseas markets will further increase, with overseas revenue accounting for about 70% of total vehicle revenue in the first quarter and an annual estimate of about 60%.