BYD’s Five-Minute Charge Can’t Outrun a 55% Profit Plunge as FX Losses Overshadow Export Record

BYD is rewriting the rulebook for electric-vehicle sales abroad, but its latest earnings serve as a stark reminder that international expansion comes with a price tag. The Chinese automaker delivered a record 134,542 vehicles to overseas buyers in April, up nearly 71% from a year earlier, yet first-quarter net profit collapsed by over 55% to 4.09 billion yuan (about $597 million). The culprit: currency swings that wiped out roughly 2 billion yuan in the period alone.

The export momentum has been building for months. In the first four months of the year, BYD shipped close to half a million vehicles abroad, pushing the export share of total sales to almost 43%. Britain has become a standout market, where BYD overtook all rivals in pure-electric sales between January and April with more than 12,700 units, capturing a segment market share above 7%. Down under, the Sealion model dominated the Australian market in April. Yet the revenue line tells a different story: turnover dropped nearly 12% to around 150 billion yuan, marking the third consecutive quarterly decline.

Strip out the currency hit, and BYD’s underlying performance looks healthier. The gross margin actually edged up, and operating profit per vehicle came in at roughly 8,900 yuan. But the headline numbers have spooked investors. Shares listed in Hong Kong slid about 10% in the past month and are now down 32% year to date, trading near 98 Hong Kong dollars as of mid-May. Some valuation models peg the stock’s fair value at 180 Hong Kong dollars, suggesting a deep discount if the company can navigate its current headwinds.

Should investors sell immediately? Or is it worth buying BYD?

To address those headwinds, BYD is doubling down on technology. The company recently unveiled its “Flash Charger” system, which it says can fill a battery to 70% in just five minutes and reach almost a full charge in nine minutes. That attack on one of EV adoption’s biggest barriers — charging time — lands as the brand deepens its European push. Executive Vice President Stella Li recently told a London industry conference that BYD will avoid joint ventures altogether, insisting that direct control over production facilities is essential to avoid cumbersome coordination with partners.

The local manufacturing drive is already underway. A plant in Hungary has entered test production, and another facility in Turkey is set to open by the end of the year. That strategy serves a dual purpose: it bypasses the European Union’s 17% import tariff on Chinese-built EVs and paves the way for BYD’s ambitious target of exporting more than 1.5 million vehicles in 2026. Analysts at Citigroup estimate the operating profit per exported car at around 18,000 yuan, while JPMorgan forecasts that figure could reach 20,000 yuan by the end of the decade — more than triple the margin seen in BYD’s home market.

China itself remains a drag. The government halved the EV tax exemption from 2026, prompting buyers to pull forward purchases into last year and depressing first-quarter demand. Globally, April saw 1.6 million EVs sold, with Europe surging 27% while North America and China both posted declines. For BYD, the path forward hinges on two pillars: scaling its European factories fast enough to protect margins, and building out a dense network of high-speed chargers that can make its five-minute claim a real-world advantage. Until the currency noise fades and those pieces fall into place, the market is likely to keep the stock pinned below its fundamental estimates.

Ad

BYD Stock: New Analysis - 15 May

Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated BYD analysis...

en | CNE100000296 | BYD’S | boerse | 69340612 |