BYD shares rise on better-than-feared Q1 earnings, export optimism
BYD shares rose on Wednesday after China’s top electric vehicle maker clocked slightly better-than-feared earnings in the first quarter, while improving exports also offset steep declines in its domestic market.
BYD Co (HK:1211) shares rose 3.9% to HK$107.70, outpacing a 1% gain in the Hang Seng index. The company’s mainland shares (SZ:002594) added over 2%, News.az reports, citing Xinhua.
BYD’s net profit more than halved to 4.09 billion yuan ($600 million) in the three months to March 31, while its revenue slid nearly 12% to 150.23 billion yuan.
But the net profit figure was in line with market expectations, while revenue was slightly above estimates of 140 billion yuan.
Weak earnings were driven chiefly by a slowdown in BYD’s main domestic market, especially amid softening consumer demand and after Beijing withdrew some subsidies on EVs.
But BYD’s exports accounted for roughly 45% of its total 700,463 vehicle sales in Q1, indicating that the company’s overseas prospects were likely to help offset a weakening Chinese market.
The company is likely to see more favorable margins on its overseas sales, given that it is also embroiled in a bitter price war with its Chinese rivals. BYD’s sales in Europe, Asia, and the Middle East were seen gaining pace over the past year, with the company also having outlined overseas expansion as a major strategic goal.
BYD in late-March told investors it was “highly confident” of reaching its 2026 overseas sales target of 1.5 million vehicles.
The company overtook rival Tesla Inc (NASDAQ:TSLA) as the world’s largest seller of EVs in 2025, with its overseas expansion being a major driver of this trend.
By Faig Mahmudov
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