Chinese electric vehicle company BYD expects its third-quarter net profit to double due to robust sales and effective cost control. The company predicts a net profit of between 9.55 billion yuan ($1.31 billion) and 11.55 billion yuan for the July to September period, a 67% to 102% increase from the previous year.
BYD attributed this increase to its improving brand influence, expanding scale advantage, and strong industrial chain-wide cost control capability. The company’s net profit is expected to rise 120-142% YoY to between 20.50 billion yuan and 22.50 billion yuan, up from 9.31 billion yuan in the previous year.
Citi analyst Jeff Chung remains bullish on BYD into 2024, citing strong export sales and resilience in domestic price cut cycles compared to competitors. BYD’s new energy vehicle (NEV) sales reached a record high in the third quarter, ranking first in the world. The company sold 824,001 NEVs, up 53% from a year ago.
BYD recently agreed to sell 2,000 electric buses to Uzbekistan and will collaborate with the Tashkent Municipal government to promote electrification of public transportation in the capital. Shares were up 6.89% in Hong Kong trading.