Citigroup's research report pointed out that BYD (01211.HK) sold 0.373 million vehicles in August, which is in line with the bank's expectations and exceeds market expectations. The bank expects the company to sell 0.4 million vehicles in September, and to achieve a stable monthly growth of 5% from October to December. The bank has also raised its gross margin forecast for new energy vehicles from this year to 2026, and expects the net profit per vehicle to increase to RMB 9,200, 0.0102 million yuan, and 0.0112 million yuan, respectively, equivalent to a group profit forecast of 37 billion yuan, 52.6 billion yuan, and 69.2 billion yuan.

The bank has raised the company's sales forecast from this year to 2026 to 4.04 million vehicles, 5.16 million vehicles, and 6.19 million vehicles, and the target price has been raised from HKD 475 to HKD 488. The bank maintains its top pick and "buy" rating for the company. (vc/u)

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