A day after reporting a spectacular increase in first-half earnings, shares of Chinese automaker BYD that are traded in China increase by more than 5% on Tuesday.
The Chinese electric car manufacturer on Monday reported a 204.68% increase in net profit for the first half of the year, or net earnings of 10.95 billion yuan ($1.50 billion) in the January to June period compared to 3.59 billion yuan a year earlier. This increase was attributed to record deliveries.
On Tuesday, the automaker’s shares listed in Hong Kong increased by 5.6%, while equities in Shenzhen increased by as high as 4.75%.
According to the company’s stock filing, the outstanding results were mostly due to the new energy vehicle industry’s rapid expansion.
According to the stock filing, revenue climbed 72.72% in the first half of 2018 compared to the same period in 2022.
“BYD’s top line growth has undoubtedly been quite good, but we are even more impressed with its margins,” said the analyst. In the first half, BYD’s gross margin was 18%. According to Jiong Shao, a technology analyst at Barclays in China, “that is Tesla’s gross margin.”
Source (CNBC)