KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway
BYD has cut its 2025 sales target to 4.6M vehicles, down from its original 5.5M goal, signaling its slowest growth in five years. The downgrade underscores intensifying competition in China’s EV market and mounting macro headwinds.
Market Snapshot
New Internal Target: 4.6M units (–16% vs Mar guidance; +7% YoY)
Original Target: 5.5M units
Q2 Profit: –30% YoY (first decline in >3 years)
YTD Progress: ~52% of original target achieved (Jan–Aug 2025)
China Share of Sales: ~80% of total
Competition: Geely +90% YoY in economy segment (July); Leapmotor also gaining traction
Why It Matters
Growth Cooling: BYD’s pure EV + PHEV sales grew 10x between 2020–24, but growth pace now slows to single digits (+7% forecast).
Margins Under Pressure: Price war in China eroding profitability; economy segment (<¥150K) sales fell 9.6% YoY in July.
Capacity Delays: Company has slowed factory expansion, cut production for 2 consecutive months (first time since 2020).
Macro Drag: Weak consumer sentiment amid housing downturn, deflationary pressures weighing on auto demand.
Street vs Company Guidance
BYD Internal Target: ≥4.6M
Deutsche Bank Forecast: 4.7M
- Morningstar Forecast: 4.8M→ Street already braced for cuts, but official confirmation reinforces bearish sentiment.
Competitive Landscape
Geely Auto: Raised 2025 target → 3M units (from 2.71M). Strong growth in sub-¥150K cars.
Leapmotor: Expanding aggressively in EV mid-market.
Tesla: Maintaining premium positioning; less exposed to entry-level price war.
Risks for Investors
Further Target Cuts if domestic demand weakens further.
Eroding Market Share in key low-cost segments.
Profitability Risks as price war intensifies; margin compression likely.
Macro Uncertainty: U.S. tariffs + Chinese property slump could deepen demand weakness.
Potential Silver Linings
International Expansion: BYD still scaling in Europe, Latin America, and Southeast Asia.
Vertical Integration: In-house battery + chip production cushions cost pressures relative to peers.
Policy Support: Beijing’s EV subsidies and green push remain tailwinds, though less impactful than earlier cycles.
Investor Watch
Base Case: Sales ~4.6–4.8M, modest growth but margin erosion continues.
Bull Case: Overseas demand offsets China weakness; sales closer to 5M with stable margins.
Bear Case: Domestic slowdown deepens, sales miss 4.6M, profits fall further.
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