Shares of BYD surged on Tuesday after China’s biggest electric carmaker said third-quarter net profit looks likely rise by more than four times because of strong sales and a better mix of cars.
The group estimated that net profit for the July-September quarter came in between 5.5 billion yuan to 5.9 billion yuan (US$765 million-$820 million).
That represents an increase of 333% to 365% from the same period a year earlier.
BYD’s Hong Kong shares gained 4% on Tuesday morning while its shares in Shenzhen climbed 5%.
The company, which is 19% owned by Warren Buffett’s Berkshire Hathaway, said in a filing late on Monday that improved cost controls had also contributed to the jump in earnings.
Government incentives have helped sales of electric vehicles surge in the world’s biggest auto market.
BYD’s combined sales of pure electric and hybrid plug-in vehicles increased 250 per cent in the first nine months, easily outpacing a 110% rise for the overall EV segment.
- Reuters with additional editing by Jim Pollard
ALSO SEE:
BYD Shares Plunge Amid Speculation of Buffett Stake Sale
BYD Leads Charge as China EV Sales Surge 130% in June
China Looking to Extend EV and Car Tax Exemptions
China’s BYD Outsells Top Four EV Rivals Combined This Year
