Citi: Maintains BYD "Buy" rating, H-share target price at HK$142

Citi issued a report estimating that BYD's inventory at the end of August edged down 0.01 months month-on-month, remaining at normal levels. Assuming September export volume grows 3% month-on-month, and shipments of new energy vehicles equipped with second-generation blade batteries potentially expand by 20,000 units month-on-month, the bank believes inventory turnover days are expected to remain stable at 1.9 months, thereby supporting total wholesale shipments in September to reach 453,000 units, up 4.6% month-on-month. The above assumptions imply that total sales in the third quarter of 2026 will reach 1.3 million units, up 19.2% quarter-on-quarter, of which exports will be 565,000 units, up 20% quarter-on-quarter, and domestic wholesale volume will be 733,000 units, up 18.7% quarter-on-quarter. Citi maintains its "Buy" rating on BYD, mainly because BYD regained market share in the domestic pure electric vehicle segment in August, with an H-share target price of HK$142.