UBS: Byd (1211. HK) rating to Buy The target price was significantly raised to HK$320

UBS said in a report that by 1211.HK, with 90,000 electric vehicles per month in the fourth quarter, dispelled the bank's concerns about increased competition and declining market share, and strong sales are expected to continue this year. BYD's long-established brand effect in the mass-market electric vehicle segment can help defend its market share of about 20%, while its e-platform 3.0 and Ocean series can be further growth drivers this year. With continued capacity expansion and external certification, its blade batteries are also likely to reach a turning point in large-scale external sales. UBS upgraded BYD's rating from "sell" to "buy" and raised its target price from HK$144 to HK$320.

UBS said that although BYD is China's second-largest electric vehicle battery manufacturer, it has not yet achieved large-scale external sales. However, the bank expects that its blade batteries may soon change this situation, due to the cost advantages of lithium iron phosphate (LFP) blade batteries, cobalt-free chemical composition, safety performance and cycle life, which has led to increasing acceptance of LFP batteries by automakers around the world; the energy density of battery packs up to 140Wh/kg due to the integration of CTP (Cell To Pack) battery pack technology, which is close to many NCM (nickel cobalt manganese) battery solutions; further expansion of production capacity and automaker certification And the supply of batteries for electric vehicles continues to be tight. As a result, the bank expects BYD to have 20 percent of its external sales this year, after which it will increase.