Many institutions are optimistic about BYD’s long-term value.
Regarding BYD (01211.HK) ‘s 2019 annual report, research institutions believe that although short-term performance is under pressure, the supply chain is opening faster, optimistic about its long-term value.
On April 21, BYD released its 2019 annual report. The annual report shows that its annual revenue in 2019 was 127.739 billion yuan (RMB, the same below), a year-on-year decrease of 1.78 %; Net profit attributable to mother is 1.614 billion yuan, a year-on-year decrease of 41.93%.
In 2019, the company ’s total car sales were 461,400 units, down 11.4% year-on-year, of which 229,500 new energy vehicles were sold, down 7.4% year-on-year. BOC Securities believes that new energy subsidies will decline by about 70% in 2019 (considering land subsidies), causing its sales and earnings to be under pressure.
At the end of March, the State Council meeting decided to extend the new energy vehicle purchase subsidy and purchase tax exemption policy for 2 years, which will greatly promote the growth of new energy vehicle sales and the profitability of car companies With improved capabilities, BYD will benefit greatly.
In addition, the company ’s fuel car sales in 2019 were 231,900 units, a year-on-year decrease of 15.0%. BOC Securities believes that BYD has achieved good results through model replacement and styling updates, and its sales performance in Q4 2019 and Q1 2020 is far superior to the industry. Recently, the domestic passenger car market is gradually picking up, and the company’s fuel cars are expected to continue to perform well, helping boost performance.
Although short-term performance is under pressure, BYD’s supply chain is accelerating. On April 14, the company announced that BYD Semiconductor has completed its internal reorganization and plans to introduce war investment through capital increase and share expansion. CITIC Securities said in the research report that it is expected that the possibility of introducing financial investors and further independent declaration and listing will not be ruled out later. If BYD Semiconductor is split and listed, the company’s subsequent greater investment value is as a neutral “new energy vehicle one-stop solution provider”, including: lithium batteries (blade battery technology, etc.), semiconductors (IGBT), Sanhe 1. Motor / electric control technology, electric platform, etc. BYD’s business structure has shifted from vertical integration to strategic opening, and its value is gradually emerging.
As a leading enterprise of new energy vehicles, many institutions are optimistic about BYD ’s long-term value. Changjiang SecuritiesAccording to the research report, in terms of new energy vehicles, the subsidy policy has warmed up, and the battery cost reduction has been superimposed. The performance of the automotive business is expected to gradually improve; in terms of power batteries, BYD has obvious technical and cost advantages, and huge external supply space. Waiting for the matching qualification of passenger car customers. Other competitive components such as electric motor control and IGBT are expected to be gradually supplied from outside. It is estimated that the company’s EPS in 2020-2022 will be 0.81, 1.19, and 1.57 yuan, respectively, and the corresponding PE will be 74X, 50X, 38X.
Hong Kong stocks opened today, and BYD reported HK $ 43.50, up 2.59%.