BYD Forecasts Higher First-Half Profit as Solar Losses SlowBloomberg News
BYD Co., the Chinese automaker part-owned by Warren Buffett’s Berkshire Hathaway Inc., rose the most since November 2011 in Hong Kong trading today after forecasting a 31-fold surge in first-half profit.
Shares of the the maker of the E6 electric car gained 12 percent to HK$28.15 at the close of trading in Hong Kong, while the benchmark Hang Seng Index gained 0.7 percent. Its Shenzhen-traded stock rose 3.1 percent.
The Shenzhen, China-based company said it may earn first-half net income of 400 million yuan ($65 million) to 500 million yuan, up from 16.3 million yuan a year earlier, according to a filing to the city’s stock exchange yesterday. First-quarter profit gained 316 percent to 112.4 million yuan as sales increased 9.8 percent to 12.9 billion yuan.
The company headed by Chairman Wang Chuanfu forecast an increase in its auto sales and said it’s seeing strong orders for its handset and assembly business. Demand for rechargeable batteries is growing and rising prices for photovoltaic products are helping narrow its solar losses.
SAIC Motor Corp., a Chinese partner for General Motors Co., gained 0.1 percent to 14.90 yuan, snapping a four-day losing streak. First-quarter net income rose 11 percent to 6.2 billion yuan, while vehicle sales gained 17 percent to 1.34 million units in the first three months, the Shanghai-based company said yesterday in a statement to the city’s stock exchange.
Great Wall Motor Co., China’s biggest maker of sport-utility vehicles and pickup trucks, slid 2.3 percent to HK$33.70 in Hong Kong and dropped 2.7 percent in Shanghai trading. The company yesterday posted first-quarter net income of 1.9 billion yuan, beating the 1.65 billion-yuan average of three analyst estimates compiled by Bloomberg.
— With assistance by Alexandra Ho