Earnings per share (EPS) projections for BYD (SZ:002594) are also favorable, with Bernstein estimating the figures to reach RMB 13.61 in 2024, RMB 17.85 in 2025, and RMB 20.32 in 2026. These estimates suggest a positive earnings trajectory for the upcoming years, building on the company's current trailing twelve-month EPS of $1.66.The Outperform rating and price target are based on the sum-of-the-parts (SOTP) valuation method, which corresponds to 16 times the projected 2026 EPS.
This valuation reflects Bernstein's confidence in BYD's future performance and its ability to capitalize on both domestic and international market opportunities. For detailed valuation metrics and comprehensive financial analysis, visit InvestingPro.
Earnings per share (EPS) projections for BYD are also favorable, with Bernstein estimating the figures to reach RMB 13.61 in 2024, RMB 17.85 in 2025, and RMB 20.32 in 2026. These estimates suggest a positive earnings trajectory for the upcoming years, building on the company's current trailing twelve-month EPS of $1.66.
The Outperform rating and price target are based on the sum-of-the-parts (SOTP) valuation method, which corresponds to 16 times the projected 2026 EPS. This valuation reflects Bernstein's confidence in BYD's future performance and its ability to capitalize on both domestic and international market opportunities. For detailed valuation metrics and comprehensive financial analysis, visit InvestingPro.
The firm's sales volume forecast for BYD is ambitious, with expectations for the automaker to deliver 5.1 million units in 2025 and 5.7 million units in 2026. These projections imply a 20% and 22% passenger vehicle market share in China, respectively, and include significant sales volumes overseas, with 0.7 million units in 2025 and 0.8 million units in 2026. The company's current P/E ratio of 23.13x reflects these growth expectations.
Earnings per share (EPS) projections for BYD are also favorable, with Bernstein estimating the figures to reach RMB 13.61 in 2024, RMB 17.85 in 2025, and RMB 20.32 in 2026. These estimates suggest a positive earnings trajectory for the upcoming years.
The Outperform rating and price target are based on the sum-of-the-parts (SOTP) valuation method, which corresponds to 16 times the projected 2026 EPS. This valuation reflects Bernstein's confidence in BYD's future performance and its ability to capitalize on both domestic and international market opportunities.
In other recent news, Chinese automakers reported robust sales growth in November 2024, as noted by Bernstein. Retail volumes rose by 23.1% year-over-year to 2.45 million units, largely driven by a 28.7% surge in mass market brand sales, while premium brand sales experienced a slight 2.8% dip. Despite the overall positive trend, analysts project a 5% decline in China's auto demand for 2025 due to the expected expiration of supportive policies.
The premium segment has faced challenges, with BMW (ETR:BMWG) and Audi experiencing a dip in retail registrations by 18.6% and 8.8% respectively, while Mercedes-Benz (OTC:MBGAF) saw a 4.5% increase. Electric vehicles (EVs), however, showed remarkable growth with a penetration rate of 50.9% in November, and sales up by 61.5% year-over-year, totaling 1.25 million units.
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