Institution: BYD's battery business is underrated. Maintain a rating on the stock higher than the market.

Analysts at Bernstein stated in a report that BYD's battery business is undervalued, as investors mainly see it as an electric vehicle manufacturer, despite BYD being a global leader in both fields. These analysts added that BYD's valuation seems to be suppressed and overlooking the value and growth potential of its battery assets. The value of just the battery business alone is almost equivalent to the company's overall market capitalization, meaning the market is giving little value to its electronics, semiconductor, and other businesses. The company is the world's second-largest battery manufacturer, shipping 286 gigawatt-hours of batteries in 2025. Bernstein predicts that BYD's battery shipments this year will increase by 35%, with domestic demand growing by 22% and external sales increasing by 50%. The firm maintains an outperform rating on the stock, with a target price of 130.00 Hong Kong dollars.