Chinese automobile and rechargeable battery manufacturer BYD is “progressing rapidly” with its new EV (electric vehicle) battery business, says UOB Kay Hian analyst Ken Lee in a Sept 29 note. Lee is maintaining his “buy” call on the company, with a raised target price to HK$150.00 ($26.54) from HK$95.00.

BYD produces automobiles, rechargeable batteries and handset components in China. According to Lee, it will double the production capacity for its new blade battery from 13Gwh currently to 26Gwh in 2021 by adding eight new production lines to the Chongqing plant. This is in place to meet in-house EV manufacturing and expected strong demand from external customers (Chinese and global OEMs). 

“As such, we raise our 2021-22 EPS estimates by 3% and 12% respectively,” says Lee.

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