- Shares of Chinese automobile and battery maker BYD (BYDDF.PK -10.1%) tumbled after the company announced 1H results yesterday. With the results came an anemic Q3 net income forecast of RMB3M-RMB50M.
- Car sales were up 25% Y/Y in H1 to 250K units, but the vast majority were gasoline-powered vehicles. Citi's Paul Gong expects BYD to deliver only 2.1K all-electric vehicles in 2013. Ironically, investors hope profits from gas vehicles will be funneled into BYD's green technologies, like electric vehicles and buses as well as solar panels.
- BYD has set its sights on overseas markets for its electric vehicles. It won a contract to supply 35 K9 electric buses to Long Beach and Los Angeles earlier this year. But skeptics abound. A local analyst: "Unlike the domestic market, which can be easily influenced by government policies, the attraction of BYD’s electric buses still need to be tested."
- The stock is up 30.7% YTD.