(The article has been updated based on the closing prices of the companies mentioned.)

BYD's stock traded in Shenzhen surpassed RMB 300 ($46.3) for the first time, rising by the daily cap of 10 percent as of the close of China's A-share market on Wednesday, with a market capitalization of more than RMB 8800 billion.

Chinese A-share auto stocks rose broadly Wednesday, with several car companies, including Haima Motor, Xpeng Motors' G3 model OEM, rising by the 10 percent daily cap. An ETF that tracks the new energy auto sector rose nearly 9 percent.

Analysts at Huachuang Securities saw BYD's market capitalization moving toward RMB 1 trillion yuan in a report Tuesday, saying its fundamentals, including its auto business as well as its battery business, are strong.

They expect BYD to sell 600,000, 820,000 and 1 million units in 2021-2023, respectively, and the valuation of its auto business is expected to exceed RMB 400 billion.

BYD's battery business is expected to reach 30 GWh, 51 GWh and 70 GWh in 2021-2023, respectively, and the valuation of this business is also expected to exceed RMB 400 billion.

The combined revenue of BYD's businesses including BYD Electronic, semiconductor, and solar power is expected to exceed RMB 120 billion, valuing the business at about RMB 150 billion, the team expects.

The team also raised the target price of BYD's A-share in China to RMB 360.7, which corresponds to a valuation of about RMB 1032 billion and a PS of 3.8 times. Considering the A/H premium of 1.10, they raised their H-share target price to HKD 327.9.

Huachuang Securities maintained a "Strongly Recommended" rating on BYD, maintained the 2021 net profit forecast of RMB 4.7 billion and raised the 2022-2023 net profit forecast to RMB 7.8 billion and RMB 13.2 billion.

Goldman Sachs also maintained BYD's "Conviction Buy" list, raised its 2022-2023 net income forecast by 1-2 percent, and increased its target price from HKD 313 to HKD 321 in its latest research report.