BYD Company: Overseas Boom Changes The Entire Thesis

Bernard Zambonin 1.85K Followers Follow Summary China is still BYD’s biggest problem, but the picture is starting to stabilize, with domestic sales declines narrowing while total vehicle sales returned to growth in June and July. Overseas sales are now large enough to materially change BYD’s growth mix and offset weakness at home. Europe and Brazil show that BYD can take share outside China, while local production should make that expansion more durable. BYD’s valuation still looks well supported, with stronger revenue growth than mature OEM peers and broadly similar gross profitability despite trading at a somewhat higher sales multiple. Fábio Lemos/iStock Editorial via Getty Images The last time I wrote about BYD Company Limited ( BYDDY) ( BYDDF ), in March of this year, I took a more cautious stance on the thesis because it lacked two things This article was written by Bernard Zambonin 1.85K Followers Follow Equity Research Analyst at DM Martins Research.I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins Research. My articles and analyses are for educational and informational purposes only and should not be taken as investment advice. Always do your own due diligence before making any investment decisions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BYDDY, GELYF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.