Lyon: BYD shares are preferred for seasonal recovery in automobile sales in August (01211)

The Zhitong Finance App learned that although automobile sales in August in the mainland were still affected by seasonal factors, they continued to recover moderately. Sales of major car manufacturers increased 6% month-on-month, but dealers increased their promotional efforts to boost sales, causing price pressure to continue to increase. Against the backdrop of weak consumption, the bank believes that new model launches and promotions are still a key catalyst for sales growth, so the performance of BYD shares (01211) and Zero Sports (09863) is relatively resilient.

The bank expects weak demand to continue until the end of the year. After the cumulative demand in the early period is gradually digested, 2027 is expected to usher in a recovery. The market expects the government to introduce further policies, including adjusting export VAT rebates, to promote industry integration. BYD is still Lyon's preferred stock in the industry.