Changes in Hong Kong stocks | BYD shares (01211) rose more than 6%. Second-generation Seagull recently listed, Citi is optimistic that the company will welcome the three major catalysts

The Zhitong Finance App learned that BYD shares (01211) continued to rise in the afternoon. As of press release, it had risen 6.01% to HK$71.45, with a turnover of about HK$2,197 billion.

According to news, on October 20, BYD Ocean Network's “National Sacred Car” Seagull welcomed its first generation — the second-generation Seagull was officially launched. A total of 5 versions of the new car were launched, with a super replacement price of 62,900 yuan to 96,900 yuan. According to reports, since its launch in 2023, Seagull's cumulative sales volume has exceeded 1.55 million units, setting a record for the fastest total sales of pure electric models in the world, breaking one million units. It is also worth mentioning that BYD Co., Ltd. plans to announce its third quarter results on October 29, and several major research reports are optimistic.

Citi recently released a research report saying that it is expected that the net profit of BYD shares in the third quarter (excluding exchange effects and contributions from BYD Electronics) will reach RMB 12.95 billion, supported by strong free cash flow, which is expected to trigger shortfall recovery in the market. The bank believes that there are three factors that will help establish a lower valuation limit for BYD shares, including the elimination of policy uncertainty; limited room for Western European exports to decline in FY2027; and the outlook for exports and domestic markets in FY2027 is less pessimistic.