BYD Shares Drop 8%

SadaNews - Shares of "BYD" listed in Hong Kong dropped by up to 8% on Monday, reaching HK$105.2, the lowest level since April 9, heading towards the biggest daily decline since May 26, and leading the list of losers on the Hang Seng Trade and Industry Index and the Hang Seng Technology Index.

Shares of the company also fell 4.9% in Shenzhen to 108.5 yuan, moving toward the largest daily drop since May 26.

The decline came after the Chinese electric vehicle manufacturer reported its first quarterly profit drop in over three years, as its expansion stumbled amid a government campaign against price wars.

The results showed a net profit drop of 29.9% year-on-year in the second quarter, while revenues increased by 14%.

"Nomura" maintained its buy recommendation but lowered the target price for the stock in Hong Kong to HK$132 from HK$163.67, and for the stock in Shenzhen to 133 yuan from 167.66 yuan, indicating that the second-quarter results for 2025 fell below expectations, but they may have hit the bottom with a recovery anticipated in 2026.

Meanwhile, "Citi" also maintained its buy recommendation, noting that the second-quarter results were disappointing, but it expects a recovery in net profit per vehicle in the second half.

The Hang Seng Automotive Index fell by 0.7%, while the benchmark Hang Seng Index rose by 2%. Year-to-date, the company's shares in Hong Kong have increased by 21.3%, and in Shenzhen by 16.3%.