Why BYD Stock Is Falling Despite Its Best Quarter in Years
TLDR
- BYD posted its first quarterly profit in three years, with Q2 net profit rising 30% to 8.2 billion yuan
- The 30% profit growth missed analyst expectations of 48%, sending the stock lower
- H1 revenue fell 7.13% year-on-year to RMB344.8 billion due to weak domestic demand
- Overseas shipments jumped 71% in H1 to over 790,000 vehicles, making up 44% of total sales
- BYD targets 20,000 FLASH Charging stations in China by year-end, up from 7,018 at end-June
BYD stock reversed on Thursday despite the company reporting its first quarterly profit in three years. The stock is down around 4.5% year-to-date. The profit miss was the key driver of the negative market reaction.
Q2 net profit came in at 8.2 billion yuan ($1.22 billion), up 30% year-on-year. Analysts had expected growth of 48%, making the result a clear miss. That gap was enough to push the stock lower.
Revenue slipped 3.2% to 194.6 billion yuan in Q2. That followed a steeper 12% drop in Q1, marking four straight quarters of revenue declines.
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