Zhitong Finance App learned that Morgan Stanley released a research report stating that it rated BYD Company Limited (01211) as "outperforming the market", and raised its sales forecast for fiscal year 2024 and 2025 by 5% and 3% respectively. The target price was raised by 9% to HKD 300.

The report stated that Morgan Stanley's long-term view on BYD remained unchanged and believed that the company was expected to become the "next Toyota Motor." The bank expects that with the clarification of EU tariff issues, BYD will be more proactive in entering overseas markets. In addition, BYD has strategic manufacturing flexibility to export or locally produce pure electric vehicles and plug-in hybrid electric vehicles. The bank predicts that about 20% of BYD's vehicle production capacity may be located overseas by 2030.

The bank stated that due to the uncertainty of profits in the domestic electric vehicle industry, investors may consider BYD as a safer growth stock in the second half of this year. As for the news that BYD will be more aggressive in overseas expansion, it may also support a further revaluation of its shares. The bank expects that BYD's profit margin will continue to improve in the second half of this year.