[ad_1]
BYD is planning to repurchase more shares, the automaker said in a filing on Sunday (Feb 18), as it seeks to revive a stock price slump resulting in a 15-month low earlier this month.
The Shenzhen-based company also said it aims to ramp up production of more luxury models this year, boosting its credentials beyond just stylish but budget-friendly cars.
The company’s stock market performance has taken a hit as broader fears of a renewed industry price war spooks investors while China’s stock market has tumbled on wider concerns over the country’s economic performance.
BYD and the broader market started to rebound earlier this month on state support. The electric vehicle (EV) maker’s Hong Kong-listed stock was down 1 per cent in early Monday trading. The company’s shares ahead of Monday’s opening were down 11.4 per cent for the year.
The ongoing price war has already shown up in the company’s results. The EV maker guided towards a preliminary 2023 net income of between 29 billion yuan (S$5.5 billion) and 31 billion yuan, short of analysts’ estimates of 31.5 billion yuan.
Record deliveries in the fourth quarter, when BYD overtook Tesla as the world’s top seller of electric cars, did not translate into another bumper profit. Fourth quarter net income will be between 7.2 billion to 9.2 billion yuan, according to Bloomberg calculations, down from the previous quarter’s 10.9 billion yuan.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BYD previously conducted a 1.8 billion yuan A-Share buyback in June 2022. BYD’s A-Shares listed in Shenzhen jumped 2.3 per cent after Chinese stocks resumed trading following the Lunar New Year break before pulling back partially on profit taking. BLOOMBERG
[ad_2]
Source link
