CLSA assigned a “High Conviction Outperform” rating to both BYD and Geely, setting price targets of HKD130 and HKD23, respectively, citing resilient domestic sales and substantial export growth. The broker noted that elevated oil prices may be steering more overseas buyers toward electric vehicles.
“The momentum in the auto sector is improving, with orders recovering,” CLSA said in a research report. The broker favors BYD and Geely as “key beneficiaries of export growth and resilient domestic sales.”
The report highlighted a significant increase in exports for both companies in March. Year-to-date export volumes have risen 129 percent for BYD and 56 percent for Geely. This comes as BYD’s overall sales for March recovered to 302,459 new energy vehicles, a 58 percent increase from February, according to company filings. While the monthly figure represents a 20 percent decrease year-over-year, the company’s overseas sales continue to be a major growth driver, jumping 65 percent in March compared to the previous year.
The positive analyst rating follows a period of intense domestic price competition that has weighed on profitability for many Chinese automakers. BYD recently reported its first annual profit decline in four years for 2025. In response, the company has increased its 2026 export target to 1.5 million vehicles, signaling a strategic pivot to international markets to sustain growth. Domestic sales are also showing signs of a rebound, with weekly sales for BYD and Geely’s Galaxy brand up 10 percent, according to channel data cited by CLSA.
The strong export performance from China’s leading electric vehicle makers suggests a potential shift in the global automotive market. As domestic competition squeezes margins, companies like BYD and Geely are increasingly looking abroad for growth. Investors will be watching to see if the export momentum can offset the pressures from the domestic price war in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
