HK Stock Market Move | BYD COMPANY (01211) rises over 6%; second-generation Seagull to launch soon; Citi bullish on three major catalysts for the company.

BYD COMPANY (01211) continued to climb in the afternoon, rising 6.01% as of press time to HK$71.45, with turnover of approximately HK$2.197 billion. On the news front, on October 20, BYD Company Limited's Ocean network "national divine car" Seagull welcomed its first generation change the second-generation Seagull was officially launched. The new car is offered in 5 versions, with a super trade-in price of 62,900 yuan to 96,900 yuan. It is reported that since its launch in 2023, cumulative sales of the Seagull have exceeded 1.55 million units, setting a record for the fastest global pure electric model to surpass one million units in cumulative sales. It is also worth noting that BYD COMPANY plans to announce its third-quarter results on October 29, and research reports from several major banks expressed optimism. Citi recently issued a research report stating that it expects BYD COMPANY's third-quarter net profit (excluding exchange rate effects and the contribution from BYD ELECTRONIC) to reach 12.95 billion yuan, and supported by strong free cash flow, this is expected to trigger short covering in the market. The bank believes that BYD COMPANY has three factors that help establish a valuation floor, including the elimination of policy uncertainty; limited downside for Western Europe exports in fiscal year 2027; and a less pessimistic outlook for both exports and the domestic market in fiscal year 2027.