BYD Co., the electric-vehicle maker and provider of handset components and batteries, announced that its net profit for the first half of the year has more than tripled, leading to a surge in its Hong Kong-listed shares. The company’s H-shares rose by 6.1% to HKD239.00, reaching their highest level since March 2023. Overall, the stock has gained 24% year-to-date.
BYD recorded a net profit of CNY10.95 billion ($1.50 billion) during the first six months of the year, compared to CNY3.59 billion during the same period last year. This remarkable growth in profit was driven by a 73% increase in revenue, which reached CNY260.12 billion. The strong sales of electric vehicles (EVs) significantly contributed to this positive outcome.
In addition to the surge in net profit, BYD witnessed a substantial growth in gross profit during the first half of the year, doubling from the same period last year. Furthermore, vehicle sales nearly doubled as well. The company’s EV market share in China expanded to 33.5%, experiencing a 6.5 percentage point increase compared to the previous year.
Analysts at Nomura predict that BYD will continue to outperform its competitors in China due to its well-established EV supply chain and diverse product portfolio. Despite potential challenges posed by macroeconomic factors and intense competition, BYD’s solid foundation is expected to sustain its success. Furthermore, the company’s expansion into overseas markets for EV models is anticipated to provide further opportunities for growth.
Overall, BYD’s impressive financial performance in the first half of 2023 reflects its strong position in the EV market and highlights its potential for continued success in both domestic and international markets.