Q: Hello, why has the stock performance on this been not so great lately? What are your thoughts on this in the near future? Thanks.
Shyam
Shyam
5i Research Answer:
BYD reported weak Q1 earnings, and a poor Q2 sales outlook. This resulted in some broker downgrades. But we think the company can recover. Recent issues are largely weather related. Also, the company had some strong quarters last year and it had set up a higher cost structure (i.e more staff) following this. Then, the tide turned a bit. EPS is likely to dip this year, but very strong growth is still expected in 2025. It may not do much in the short term, but we would consider it worth holding now.