BYD Electronic's Shares Jump After Guiding for Higher 1st Half Profit

By Bingyan Wang

Shares of BYD Electronic (International) jumped on the first trading day after the company guided for its first-half profit to more than double compared with the same period a year earlier.

The Hong Kong-listed manufacturer of electronic components products advanced as much as 7.7% in early trade on Tuesday, outperforming a 1.8% loss for the city's broader Hang Seng Index. Stock trading in Hong Kong had been cancelled Monday because of a typhoon.

BYD Electronic said Friday that the company's first-half net profit was likely to improve 115%-146% from a year earlier thanks to its growing market share with its major customers and the growth in business for electric vehicles and intelligent products.

Tuesday's stock rally was within Citi analysts' expectation. "We believe investor confidence (on execution) will be enhanced after the company delivers a better than expected result. Share price could react positively," they said in a note released over the weekend.

Looking ahead, the analysts remain positive about the company and expect the progress of its auto business and partnership with Huawei could "drive further share price breakout" in the second half of the year.

Shares of BYD Co, parent company of BYD Electronic before the latter spun off, was 0.6% higher in Hong Kong.

Write to Bingyan Wang at bingyan.wang@wsj.com

(END) Dow Jones Newswires

July 17, 2023 22:58 ET (02:58 GMT)

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