On June 17th, the stock has risen more than 3%, as of press time, it has risen 3.66% to HKD 237.8, with a turnover of HKD 953 million.$BYD COMPANY (01211.HK)$Currently up more than 3%, as of press time, up 3.66%, at HKD 237.8, with a turnover of HKD 953 million.

According to reports, the European Union has preliminarily announced that it will impose a 17.4% tariff on BYD's automobile exports. A research report from Lyon stated that the direct impact of the tariff on BYD's profits in 2024 is estimated to be between RMB 500 million and RMB 1 billion, accounting for about 1% to 3% of the bank's pure profit forecast for the company. Macquarie stated that the clarity of the EU's tariffs makes BYD more active in its expansion plans in the EU. UBS stated that the impact of the 17.4% tariff on BYD may be controllable because compared to its peers, BYD has significant cost advantages.

According to a report from China Merchants Securities, the European Union announced that it will impose additional tariffs on electric vehicles imported from China starting from July. The policy has limited impact on the industry and does not change the trend of car factories going global. The tariff rate is lower than the previous market expectations, and manufacturers have already taken precautions. In addition, the weak European car market has made Southeast Asia and South America the new directions for manufacturers to expand, which keeps the overall export growth strong. The company BYD is recommended as the top pick, as the market is still underestimating the killing power of DM5.0 on fuel cars. After fully adopting the new technology platform this year, it will accelerate the disruption of the market pattern. The company has room for doubling its domestic market share and has several times the growth potential in exports. The EU's tariff policy has limited substantive impact on the company.