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August 2, 2021
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The stock price has quadrupled this year. Does BYD still have space to rise?

This year, to say that the strongest company in auto stocks is none other than BYD. Since the beginning of the year, BYD’s share price has risen by 295% and its market value has exceeded 500 billion. As a leading company in China’s new energy car companies, BYD’s strong development momentum is obvious to all, and it has been strongly recognized by the capital market. As of November 12, before publishing, BYD’s overall market value rebounded after falling, closing at 169.33 yuan, with a total market value of 462 billion .

How much upside does BYD have? Some car magazine summarizes the recent investigations on BYD by institutional investors such as securities companies and funds. These investigations reveal a lot of important information about BYD’s future development.

Performance continues to improve
At present, BYD’s main business is divided into automobile business, mobile phone components and assembly business, and secondary rechargeable battery and photovoltaic business. The automobile business is the most familiar to us, and the mobile phone components and assembly business mainly provides customers with one-stop services such as product development, innovative materials, parts, machine manufacturing and supply chain management. The business has involved smartphones, smart wearables, Market areas such as computers and smart homes.

Regarding BYD’s crazy rise in the stock capital market, from the K-line chart, it started after March 2020. This is also the time when BYD officially released the “blade battery”, and the blade battery is not afraid of puncture and will not spontaneously burn. The safety of the explosion, the stock also began to rise slightly from around 50 yuan.

On July 12, the world’s first BYD Han equipped with a blade battery was launched. The sales volume of the car in October was 7,547, and the cumulative sales in the four months after the launch was close to 20,000, and sales continued to increase for four consecutive months.

According to the plan, the BYD e6 and BYD Song PLUS EV that will be launched this year will also use blade batteries. BYD said that in the third quarter of 2020, the domestic situation of new crown pneumonia epidemic prevention and control continued to improve, and the auto sector business resumed growth, especially the sales of new energy vehicles achieved a rapid bottoming out. The company’s new energy vehicle sales grew rapidly. Power battery customers are currently expanding smoothly and are expected to acquire more customers in the future, and the production capacity of “blade batteries” is also steadily climbing.

Investment banks collectively see more
CITIC Securities said that in the fourth quarter, new energy vehicles and BYD Electronics continued to improve. In terms of new energy vehicle business, in 2020 Q1/Q2/Q3, the company will achieve sales of 2.2/3.8/5.0 million new energy vehicles. Due to the ramping up of the blade battery production capacity as scheduled, the “Han” listing continued to accelerate delivery, and BYD’s 2021 Tang, Song MAX, upgraded e2, and Song PLUS models will be launched in August. In the upward cycle of models, the company’s new energy vehicle sales are expected to approach 90,000 in Q4 2020.

In terms of electronic components, BYD has continued to increase its share of supporting downstream major customers since Q4, and the shipment of new products has been clear. The fundamentals of the company’s main business will continue to improve sequentially. The recovery of the energy vehicle market is also an important guarantee for BYD’s annual net profit to double. In BYD’s business system, automobiles contribute 53% of revenue.

BYD’s share price continues to soar, which is affected by the economic situation at home and abroad. Recently, China’s concept stock auto stocks have risen sharply. Last week, the country released a blockbuster about new energy vehicles. With the continuous improvement of performance growth, business scope and profitability, as well as the continuous improvement of policy level, BYD has been given better market expectations by investors. At present, BYD’s long-term trend is still positive, and whether its market value will continue to rise is relatively clear based on the current research reports given by investment banks.

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