UBS: Raises BYD COMPANY (01211) target price to 135 Hong Kong dollars, maintains "buy" rating.

UBS released a research report stating that BYD COMPANY (01211) May sales have returned to positive growth year-on-year, for the first time since September last year, performing surprisingly well in the market. There are signs of improvement in domestic market share and quarterly profit expectations, with the H-share target price raised from 128 Hong Kong dollars to 135 Hong Kong dollars, and maintaining a "buy" rating. UBS stated that since the rise in oil prices in March, demand for electric vehicles in markets outside of China is increasing. It is becoming more likely that the company's annual overseas sales will exceed the target of 1.5 million units, with strong demand and limited transportation capacity in the industry potentially supporting pricing and profitability in overseas markets. The bank also mentioned that BYD Company Limited's domestic market share in May has stabilized and rebounded month-on-month, believing that weak domestic demand and intense competition will drive industry consolidation, which will benefit BYD Company Limited in the long run. The report pointed out that the company's fundamentals are stronger now compared to four months ago, and recent announcements of the mass production of 4nm autonomous driving chips and developments in robotics have not been reflected in the stock price.