BYD (1211) chairman Wang Chuanfu told a shareholders meeting yesterday that the firm plans to develop light rail systems powered by electricity in the second, third and fourth tier cities of China over the next five years.
The cost of electric light rail is reportedly only one sixth of that of the subway. BYD is researching light rail systems, including sections for train integration, interior, electrical communication, traction systems, integrated technical and testing centers. The electric car maker also estimated that its operating income this year will exceed 100 billion yuan (HK$118.35 billion). The total revenue for the year ended December 31, 2015, was 77.6 billion yuan. The stock rose 1.94 percent yesterday to close at HK$46.55. Credit Suisse set a target price of HK$82 for BYD H shares and maintained an outperform rating.
The new-energy vehicle leader, BYD sold 24,200 new energy automobiles in the mainland in the first four months this year, representing 40 percent of total domestic sales. WATSON TAN
