Iran War “Safe Haven”: BYD Surges in March, Electric Car Stocks Become Among the Best in Hang Seng Tech

```

Soaring oil prices are reshaping the investment logic for electric vehicles. BYD's Hong Kong shares posted their best monthly gain in over a year in March, with overseas markets becoming the core driver of valuation growth.

The oil price shock triggered by the Iran war is providing an unexpected catalyst for China's electric vehicle sector. BYD's Hong Kong shares surged 8% in March, ranking among the best-performing stocks on the Hang Seng Tech Index along with NIO and Leapmotor. In previous months, the sector was under pressure from weak domestic demand and ongoing price wars.

The strong momentum in overseas markets is a key support for this rebound. BYD's overseas sales jumped 50% year-on-year in the first two months of this year, with a clear recovery in customer traffic at dealerships in Asian markets such as the Philippines and Indonesia. Meanwhile, orders from Central and South America have also surged.

Investors are focusing on Friday's upcoming earnings and full-year guidance to assess the sustainability of export-driven recovery.

Oil price shock reignites overseas demand

Iranian conflict has pushed up international oil prices, directly stimulating consumers in emerging Asian markets to buy electric vehicles. According to Bloomberg, long lines of customers purchasing EVs have appeared in both the Philippines and Indonesia.

Gavekal Capital Ltd. portfolio manager Leonid Mironov said: "In the long run, this will help rebuild the market narrative and consumer perception for EVs, especially in developed markets."

Third Bridge analyst Rosalie Chen noted, "Overseas expansion has become an inevitable choice for Chinese carmakers." She believes BYD’s self-produced batteries bring cost advantages, enabling strong profitability in export business, and "effectively capture demand shift driven by rising oil prices."

Last year, BYD delivered 1.05 million vehicles overseas and has set a target of 1.3 million sales outside of China this year. If its self-developed next-generation fast-charging technology can be implemented abroad, this is expected to further address the two key bottlenecks of charging speed and inadequate infrastructure.

Intensifying differences in market view, sustainability of rebound in doubt

However, market differences regarding BYD are widening. According to S&P Global data, its short positions as a percentage of free-floating shares have risen from 0.7% at the start of the year to 3.2%, indicating increased short bets and reflecting some investors' doubts about the sustainability of the rebound.

Still, the bull camp is also accumulating. Kevin Net, Head of Asian Equities at Financiere de L'Echiquier, said BYD’s strong share performance stems from expectations of sales recovery this year driven by new model launches, new technology debuts, and most importantly—continued positive momentum in overseas markets.

BofA Securities analyst Ming Lee believes BYD's products are gaining recognition abroad, but the company still needs to prove it can retain its domestic market share. "Recent tech launches have revived store traffic, but we're still waiting for clearer signs of sustained order recovery."

Currently, BYD's share price is still down more than 30% from its record high in May last year. Friday’s earnings and full-year guidance will be a critical moment to test whether this rebound can turn into a trend.

Risk Disclosure and DisclaimerThe market carries risks, and investments require caution. This article does not constitute personal investment advice and does not take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their specific situation. Any investment based on this is at your own risk. ```