More Chinese companies are becoming global players. BYD and other Chinese electric car brands gathered at the German auto show last week to announce plans for the European market. Auto exports remain a bright spot in China’s overall trade slump, according to customs data. Lei Meng, China equity strategist at UBS Securities, said in a note on Wednesday that these overseas sales helped boost China’s auto sector’s revenue by 46% in the second quarter from a year earlier. BYD, state-run SAIC and other Chinese companies captured 9% of the global electric vehicle market in the second quarter, up from 5% in the second quarter, according to Counterpoint Research. This will exceed the company’s share in the Chinese domestic market, making it the world’s largest automobile market. On September 4, CLSA raised its price target for BYD by HK$10 to HK$310. That was up 25% from BYD’s closing price this week. Analyst Xiao Feng and his team predict that BYD will join the world’s 10 largest OEMs this year and be among the top five by 2026. According to a CLSA report, Toyota will sell 10.43 million units in 2022, making it the world’s number one. Said. Analysts expect BYD’s sales to rise 65% this year to 3.05 million vehicles, including exports of 250,000 to 300,000 vehicles. This is similar to what Toyota has done. According to Britannica, Japanese automakers began increasing their overseas exports about 60 years ago and have grown over the decades, surpassing General Motors as the world’s largest automaker in 2008. Currently, Japanese auto giants are struggling to maintain a strong presence in the all-electric vehicle market. Beyond EVs Slowing growth in China is also causing companies, including start-ups, to look abroad. Profits in mainland Chinese stocks, known as A-shares, fell 8% in the second quarter from a year earlier, UBS’s Meng said. However, he said, “Another sector riding on strong exports is machinery. Despite a year-on-year decline in the first quarter, profits in the second half of 2012 turned positive year-on-year.” Ta. Shenzhen-listed construction machinery company XCMG said in filings over the past two weeks that overseas sales rose 33.5% to 21 billion yuan ($2.86 billion) in the first half of this year. The company, whose official name is Xuzhou Construction Machinery Group, said this accounted for 41% of its total revenue, an 11 percentage point increase from the previous year. He claims that revenues from West Asia, North Africa and Central America more than tripled in the first half of this year. The company said sales from Europe were up 150%, while sales in Central Asia and North America doubled. UBS equity analyst Phyllis Wang and her team said in a Sept. 4 note that XCMG’s full-year export sales growth target is 50%. Analysts raised their price target to 6.70 yuan from 6.20 yuan based on the rise in earnings estimates, while maintaining their rating at neutral. This is the closing price of the stock on Friday. For years, Chinese companies have sought to “go global” with the tacit encouragement of the Chinese government. State-owned shipping giant Costco owns ships around the world. Shanghai-listed Haier acquired GE’s home appliance division in 2016. Ming Yang, also listed in Shanghai, is a global leader in wind power. JPMorgan analysts, citing Omed and S&P Capital IQ, said Mindray, China’s largest domestic manufacturer, is ranked among the world’s 50 largest medical device manufacturers. JPMorgan’s Helen Zhu and her team said in a note dated Aug. 31 that MindRay’s international sales in the second quarter “accelerated significantly,” increasing 40% year-over-year. Sales in Europe were up 20% year-on-year in the first half, the company said. The Shenzhen-traded company’s shares are up 67% on JPMorgan’s price target of 433 yuan, even as analysts cut growth forecasts amid a continuing crackdown on corruption in China’s healthcare sector. There is near upside potential. — CNBC’s Michael Bloom contributed to this report.