BYD Shares Rise After Resilient Q1 Performance
BYD shares moved higher on Wednesday as the company reported first-quarter results that were better than feared, while stronger exports helped cushion weakness in its domestic market.
Stock Outperforms Broader Market
Shares of BYD listed in Hong Kong climbed 3.9% to HK$107.70, outperforming the broader Hang Seng Index, which rose about 1%. Meanwhile, BYD’s mainland-listed shares also advanced by more than 2%.
Profit Drops, But Meets Expectations
BYD’s net profit fell sharply to 4.09 billion yuan ($600 million) for the quarter ending March 31, marking a decline of more than 50% year-over-year. Revenue also decreased by nearly 12% to 150.23 billion yuan.
Despite the drop, earnings were largely in line with analyst expectations, while revenue slightly exceeded forecasts of around 140 billion yuan.
Domestic Slowdown Weighs on Performance
The weaker results were primarily driven by a slowdown in China’s EV market, where demand has softened. The situation was further impacted after Beijing scaled back certain electric vehicle subsidies, putting additional pressure on local sales.
Exports Provide a Key Growth Cushion
A major bright spot for BYD was its strong export performance. Overseas shipments accounted for approximately 45% of total vehicle sales, which reached 700,463 units in the first quarter.
This growing international presence is helping offset declining demand in China and positioning the company for more balanced growth.
Overseas Expansion Boosts Margins
BYD is also expected to benefit from higher profit margins in international markets, especially as it faces intense price competition within China. The company has been expanding aggressively across Europe, Asia, and the Middle East, with overseas growth forming a central part of its long-term strategy.
Confident Outlook and Global Leadership
In late March, BYD reaffirmed its confidence in achieving its 2026 target of 1.5 million overseas vehicle sales.
The company has already surpassed Tesla Inc. (NASDAQ:TSLA) to become the world’s largest electric vehicle seller in 2025, with its global expansion playing a crucial role in this milestone.
