Shares of BYD Electronic (International) experienced a significant surge in their first day of trading following the company’s announcement that its first-half profit is expected to more than double compared to the previous year. The Hong Kong-listed manufacturer of electronic components saw an early trade increase of up to 7.7% on Tuesday, outperforming the broader Hang Seng Index, which incurred a loss of 1.8%. Trading activities were suspended on Monday due to a typhoon.
In a statement released last Friday, BYD Electronic projected a 115%-146% improvement in net profit for the first half of the year, crediting this growth to its expanding market share with major customers and the increasing demand for electric vehicles and intelligent products.
This uptick in stock value aligns with the expectations of Citi analysts, who anticipate that investor confidence in the company’s execution capabilities will be bolstered by these better-than-expected results. As a result, share prices are likely to respond positively to this news, according to the analysts’ note issued over the weekend.
Looking ahead, these analysts maintain their positive outlook on BYD Electronic, predicting that the company’s auto business advancements and partnership with Huawei will drive further stock price growth during the second half of the year.
Meanwhile, shares of BYD Co, the parent company of BYD Electronic prior to its spin-off, enjoyed a 0.6% increase in the Hong Kong market.