Phoenix New Media Hong Kong Stock | Goldman Sachs issued a research report that the bank raised BYD's delivery forecast for DM-i hybrid vehicles for 2021-2025 and revenue forecast for external battery sales for 2022-2025 to reflect the company's strong product development momentum in the automotive / battery business, as well as favorable demand conditions in the industry.

In its annual performance report for 2020, BYD management announced that it would end production of NCM batteries and focus exclusively on manufacturing and research and development based on LFP batteries. Although this decision is inconsistent with global automotive / battery manufacturing peers, the company emphasized the scalability, cost-effectiveness and thermal stability of LFP.

In addition, the company delivered 150000 new energy passenger vehicles in the first half of this year (company data). The bank expects its monthly sales of new energy vehicles to increase to 50-60, 000 by the end of 2021, driven by increased production of seasonal and popular models and more launches. Goldman Sachs believes that the latest annual sales and channels will drive full-year sales of new energy vehicles to exceed the management guidance of 400000 vehicles.

As a result, Goldman Sachs raised its 2021-23 net income forecast by 3-5% and raised the target price of A / H shares from HK $262 / HK $308 to HK $266 / HK $313 respectively, maintaining a "buy" rating.