Goldman Sachs: BYD COMPANY (01211) target price is 134 Hong Kong dollars, first-quarter operating profit far exceeds expectations.

Goldman Sachs released a research report stating that BYD COMPANY (01211) had a strong performance in the first quarter, with revenue, gross profit, and operating profit exceeding the bank's expectations by 12%, 18%, and 82% respectively. The outstanding performance seems to have benefited from the increased proportion of overseas sales, which reached 46% in the quarter, as well as better-than-expected external battery sales and strict control of material costs, driving the gross profit margin to 18.8%. Goldman Sachs has a "buy" rating on BYD Company Limited with a target price of HK$134. The bank believes that BYD Company Limited is well positioned to capture domestic market demand and accelerate overseas expansion, with the expectation that the overseas market will become the second growth driver, contributing 83% of the increase in car sales by 2030.