HONG KONG (Reuters) - Shares of Warren Buffett-backed BYD Co Ltd (1211.HK) slumped 9 percent in Hong Kong trading after brokerage CLSA slashed its target price for the electric car maker.
In its report, CLSA maintained its "conviction sell" rating on the company and cut its target price on the stock to HK$0.41, suggesting a further 96 percent decline from current levels.
"BYD is likely in worse shape than we thought," said CLSA in a note to clients, adding that the company's auto business is losing out to competition while its solar business is not expected to turn profitable.
BYD shares had traded nearly two-and-a-half times their average daily volume by midday in Hong Kong. The company's Shenzhen listing (002594.SZ) fell 5 percent.
Reporting by Vikram Subhedar; Editing by Ryan Woo