(Yicai Global) Jan. 31 -- Shares in BYD advanced both in Shanghai and Hong Kong today after the Chinese new energy vehicle manufacturer said that net profit for last year is likely to more than quintuple from the year before on booming sales.

BYD’s stock price [SHE:002594] closed up 1.3 percent at CNY285.80 (USD42.30). Earlier in the day it climbed 2.4 percent to CNY288.80. Its Hong Kong-traded shares [HKG:1211] gained 2.2 percent to close at HKD245 (USD31). Earlier in the day it advanced 4.7 percent to hit HKD251.

Net profit is expected to soar between 425.4 percent and 458.2 percent last year from the year before to reach between CNY16 billion (USD2.4 billion) and CNY17 billion, BYD said in its performance forecast released yesterday. This increased to a between-11-and-12-fold gain once non-recurring profit and losses were deducted. Revenue surged 94.4 percent to CNY420 billion (USD62.2 billion).

BYD was the world’s top seller of electric cars last year, with sales more than tripling to 1.85 million units, exceeding that of the US' Tesla, the Shenzhen-based carmaker said. Total car sales jumped more than two-and-a-half-fold to 1.86 million vehicles. Booming sales greatly pushed up earnings and eased pressure from the soaring price of raw materials, it added.

The firm’s mobile phone parts and assembling businesses developed stably, despite lackluster demand in the consumer electronics industry, thanks to big orders from overseas clients and the optimization of its business structure, BYD said.

The market is bullish on the scale effect of BYD’s sales growth, the sustainability of its sales and performance and its long-term research and development capability of core technologies, Securities Times reported. Exports and high-end products are likely to be drivers of the company’s growth.

BYD’s revenue is likely to jump 57 percent this year from the year before to CNY647.3 billion (USD95.8 billion) and 32 percent in 2024 to CNY853.4 billion, Sealand Securities said.

Editor: Kim Taylor