While BYD's revenue for the three months ending March 31 reached 170.36 billion yuan, representing a substantial 36 percent year-on-year increase, it slightly fell short of market expectations. Nevertheless, the strong net income performance underscores BYD's growing profitability and operational efficiency.
Considering that the first quarter typically represents the slowest period for Chinese automakers due to the extended Chinese New Year holiday, BYD's near-million unit car sales for the quarter position the company favorably to achieve its ambitious full-year sales target of 5.5 million vehicles, including 800,000 exports.
Analysts anticipate minimal impact from potential US auto tariffs under a Trump administration, given BYD's current lack of passenger car sales in the United States. The company's strong order prospects in high-growth regions such as South America and parts of Southeast Asia further bolster its outlook. Additionally, BYD is strategically expanding its global manufacturing footprint with the construction of an electric vehicle factory in Hungary, slated to commence production in late 2025.
BYD, along with other prominent Chinese automakers, commanded significant attention at this week's Shanghai auto show, even amidst a strong presence from European rivals like Volkswagen and BMW. Notably, BYD showcased its strategic push into the higher-margin luxury vehicle segment, featuring models such as the Yangwang U8L luxury SUV, the concept Dynasty-D series, and the concept Denza Z sports car.
In a move to broaden its investor base, BYD recently announced a stock split, following similar actions by tech giants Nvidia and electric vehicle pioneer Tesla. The company will distribute eight bonus shares for every 10 shares held and issue 12 capitalisation shares from reserves for every 10 shares issued. Morgan Stanley analysts believe this initiative will enable BYD to "cater to a broader group of investors."
Earlier this month, BYD had already signaled its higher-than-expected first-quarter earnings in a regulatory filing, coinciding with the unveiling of a groundbreaking new EV battery system capable of providing a 400 km charge in just five minutes. This cutting-edge technology will be initially available in the Han L and Tang L sport utility vehicles, with prices starting at 270,000 yuan and 280,000 yuan, respectively, and sales commencing this month.
The Tang L was prominently displayed at the Shanghai auto show, highlighting its impressive performance capabilities. The seven-seat, all-wheel-drive SUV offers three variants, with the top-tier model boasting an acceleration of 0 to 100 km/h in a mere 3.9 seconds – on par with the iconic Porsche 911.
Following the positive earnings report and overall company momentum, BYD's Hong Kong-traded shares closed 1.7 percent higher on Friday, extending its year-to-date gains to nearly 50 percent. This remarkable performance builds upon a 24 percent increase in 2024 and an 11 percent rise in 2023, underscoring the market's confidence in BYD's strategic direction and future prospects in the rapidly evolving global automotive landscape.