BYD, Guangzhou Auto Decline on Earnings Miss: Hong Kong Mover
BYD fell 2.4 percent to HK$13.04 at 9:47 a.m. in Hong Kong, heading for its lowest close in a month. Guangzhou Automobile declined 1.9 percent, heading for a three-week low.
BYD, the Chinese carmaker partly owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/B), yesterday reported first-half profit plunged 94 percent, dragged down by its solar-cell and handset units. Guangzhou Auto, which makes cars with Toyota Motor Corp. (7203) and Honda Motor Co. (7267), had its investment rating cut to neutral at CIMB Securities after the company delivered semiannual profit that missed analysts’ estimates.
BYD, whose first-half net income was 80 percent below the average of two analysts’ estimates compiled by Bloomberg, forecast profit for the first nine months will fall as much as 95 percent to 17.6 million yuan.
Guangzhou Auto’s operations with Honda and Toyota are expected to remain under pressure in the second half of this year, due to weak demand for its models, and high marketing expenses resulting from weak retail pricing, according to a UBS AG report today.
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