HONG KONG: Chinese electric vehicle giant BYD is facing increased market pressure after reporting a sharp decline in first-quarter profit, even as overseas vehicle sales continued to grow strongly.

BYD Company shares were trading at HK$99.30 on May 6, 2026, following mixed investor sentiment driven by weaker earnings and slowing domestic profitability, according to market data and analyst forecasts.

The company reported first-quarter 2026 profit of 4.09 billion yuan, down 55.4 percent year-on-year, a result that continues to weigh on the stock despite improving export performance.

BYD sold 321,123 new energy vehicles (NEVs) in April, up nearly 7 percent from the previous month but down around 15.5 percent compared to the same period last year. At the same time, overseas deliveries reached a record high of about 135,000 vehicles, reflecting growing international demand for Chinese electric vehicles.

Analysts remain divided on BYD’s short-term outlook. Several investment firms have maintained positive ratings, citing expected recovery in domestic demand and continued international expansion, while others remain cautious due to profit margin pressure and uncertainty in China’s competitive EV market.

Goldman Sachs maintained a “Buy” rating with a 12-month target price of HK$134, describing the first quarter as a likely low point for earnings and sales. Citigroup also kept a positive outlook, setting a target price of HK$142 and highlighting overseas growth as a major driver for future performance.

BNP Paribas took a more cautious stance, assigning an “Underperform” rating with a target of HK$87, citing concerns over slower profit recovery and pressure on earnings forecasts.

According to aggregated analyst estimates tracked by Simply Wall St, BYD’s average 12-month target price currently stands at HK$124, with forecasts ranging from HK$86.99 to HK$147.

Market analysts said investor attention remains focused on BYD’s ability to improve profitability in China while sustaining overseas sales growth in an increasingly competitive global EV market.

Also read: BYD reports 41% drop in February 2026 sales as domestic demand slows