This China EV stock is a 'Top Pick' for 2025

According to a recent Citi Research report, BYD (SZ:002594) emerges as the top electric vehicle stock pick for 2025, credited to its impressive performance and market positioning within the EV sector.

BYD's global expansion has significantly contributed to its success, with a notable surge in overseas sales. In December 2024, international sales hit a record high of 57,154 units, marking an 85% increase from the previous month.

Citi predicts this positive trajectory to persist into January 2025, with overseas sales anticipated to stabilize around 60,000 units, showcasing the company's ability to compete effectively on a global scale.

The company's technological innovations, including the introduction of a cutting-edge 900V platform and standardized vehicle intelligence features across its lineup, underscore BYD's commitment to driving innovation.

Moreover, BYD's robust battery production capabilities, evidenced by a substantial 32% year-on-year increase in battery installation capacity in December 2024, highlight its vertically integrated model, which yields cost efficiencies.

In 2024, BYD delivered exceptional sales performance, reaching a total of 4.27 million units, a notable 41% surge year-on-year. This included 1.76 million battery electric vehicles (BEVs) and a remarkable 12% growth in this segment. Plug-in hybrid electric vehicles experienced even more significant growth, with a 73% year-on-year increase to 2.49 million units.

Citi analysts also acknowledged BYD's resilience in potentially challenging EV market scenarios, such as a prospective price war following adjustments to government subsidies. The company's scale and operational effectiveness position it favorably to maintain profitability amidst such challenges.

Is BYDDY truely undervalued?

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