Lyon: BYD Company Limited (01211) and Geely (00175) further increase their export volume, and the domestic automobile sales momentum is on the rise.

Lyon released a research report stating that high oil prices may make buyers more inclined to prefer electric vehicles, especially in overseas markets. Export volumes of BYD COMPANY (01211) and GEELY AUTO (00175) also saw further increases in March, with export volumes growing by 56% and 129% respectively since the beginning of the year. When it comes to stock selection, the bank prefers BYD Company Limited and Geely as the main beneficiaries of export growth and resilient domestic sales, with target prices of HK$130 and HK$23 respectively, both rated "highly confident in outperforming the market". At the same time, it is understood that domestic sales momentum is also picking up, especially in the mass market, with major car companies selling 1.1 million vehicles. Channel data shows that the weekly sales volume of BYD Company Limited, Geely and LEAPMOTOR (09863) increased by 10%, 10%, and 100% respectively. The bank believes that the automotive sector is improving in momentum, with orders recovering.