(Yicai Global) Oct. 13 -- BYD, one of China’s biggest electric vehicle makers, hiked its profit forecast for the first three quarters of this year, saying it now expects earnings to have more than doubled from a year earlier after sales of new energy vehicles surged last month.

Net profit may come in at between CNY3.4 billion and CNY3.6 billion (USD503.9 million and USD533.5 million) for the nine months ended Sept. 31, an increase of as much as 129 percent on a year earlier, the Shenzhen-based company said in a statement yesterday. It had previously predicted an increase of up to 91 percent.

Profit growth was likely driven by rejigged designs and a new pricier upmarket model as BYD sold fewer cars in the period after the Covid-19 outbreak dealt a blow to the auto sector early this year. But recovery has been rapid. China's NEV sales nearly doubled last month from a year ago, the fastest pace of growth in 15 months, the China Passenger Car Association said in a report today.

In September, BYD sold 42,200 vehicles, an increase of 4 percent from a year ago. Meanwhile, NEV sales surged 45 percent to 19,900. BYD's new upscale brand Han has become a bestseller in the domestic high-end NEV market, while its redesigned Tang model has also sold well, according to the same statement. 

Shares of BYD [SHE:002594] closed 0.6 percent higher today at CNY129.29 (USD19.20) each, after earlier gaining as much as 2.6 percent.

Over the first nine months, the firm sold 269,000 units, 20 percent down from a year ago. NEV sales slid 42 percent to 110,900 units. But the declines were narrower than those of the eight months ended in August. 

BYD has also diversified its business to enhance profitability. The company’s mobile phone components and assembly business has garnered more major clients while shipments of smart products have increased. The firm did not mention how its face mask business was performing.

Editor: Emmi Laine