Buffett-backed electric carmaker BYD sees 8,000% jump in net cash flow
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STRONG demand for BYD electric vehicles in China, the world's biggest market for battery-powered cars, has triggered an 8,312 per cent jump in net cash flow from operations, underpinning the Warren Buffett-backed company's strongest first quarter in 6 years.
The Shenzhen-based automaker said the 11.9 billion yuan (S$2.5 billion) of net cash flow from operating activities it reported for the 3 months through Mar 31 in earnings released Wednesday - the highest ever recorded in a first-quarter - was mostly spurred by cash "received from sales of goods and provision of services".
Bridget McCarthy a market research analyst at hedge fund Snow Bull Capital, which focuses on green and high-tech firms, said given BYD's first-quarter net cash flows from operating activities have always been weak, "such a high print really sets the tone for the year".
In the first quarter, BYD delivered 286,329 new-energy vehicles (NEVs), up more than 400 per cent on the same period of 2021.
McCarthy said the company's target of selling between 1.5 million to 2 million NEVs in 2022 could reflect an even more "impressive" growth trajectory against the backdrop of soaring material prices for battery cells.
Net income rose 241 per cent to 808.4 million yuan in the 3 months while sales increased 63 per cent to 66.8 billion yuan, BYD said Wednesday. BLOOMBERG
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