【1211 Analysis】BYD Included by NVIDIA as Autonomous Driving Partner, Stock Price Returns to Positive Territory After Red Chip Era Fuchange: Domestic Sales Competition Remains Intense, Overseas Expansion Concept Attracts

BYD (01211)
Earlier, the stock rose by 3%, outperforming the market, reaching a six-month high. On the news front, NVIDIA (US: NVDA) announced an expansion of its autonomous driving car business collaboration, including mainland Chinese automakers such as BYD and Geely (00175).
Fuchang Financial pointed out that BYD’s business growth relies on overseas expansion, but domestic competition remains fierce. It is recommended to buy only if the stock closes above 105 HKD for three consecutive days.

NVIDIA CEO Jensen Huang stated at the GTC conference that the company’s autonomous vehicle development has been ongoing for some time and will see significant progress in the future. “The era of autonomous vehicles with ChatGPT is here… Today, we announce that NVIDIA’s robotaxi-ready platform will join new partners.” New partners include BYD, Geely, Hyundai of South Korea, Nissan, and others.

Fuchang Financial’s Wealth Management Director Wu Ying-shan said in our video program “ET Market Live” that BYD’s efforts to expand overseas markets are a key driver of its performance growth. “Looking at its financial reports, domestic car sales have very low gross margins, earning only a few thousand yuan per vehicle. But when sold abroad, profit per vehicle can exceed ten thousand, around 10,000 to 12,000 yuan… In the domestic market, with intense competition, opening the door to overseas markets offers a chance. Recently, Brazil and Argentina have allowed BYD to enter. If tariffs are reasonable, BYD has a slim chance because it is a major domestic brand. When entering foreign markets, its competitive advantage over local gasoline cars is significant.”

Recently, BYD revealed that its Brazil factory has received export orders for a total of 100,000 vehicles to Argentina and Mexico, with 50,000 vehicles ordered by each country. The company also announced that next month it will launch a new high-end electric vehicle in Europe, featuring rapid charging within minutes—much faster than current mainstream electric models.

However, Wu Ying-shan warned that BYD’s stock price has been between 90 and 110 HKD for half a year. It is necessary to observe whether recent news can push the stock above a breakout level. “The closing price should be at least above 105 HKD for three days, with the average trading volume not lower than the average of the past five days, before considering deploying derivatives.”