BYD 1211

BYD 1211

Postby winston » Sat Sep 27, 2008 9:56 pm

Buffett's Berkshire Buys Into China Battery Maker BYD By Bei Hu

Sept. 27 (Bloomberg) -- Billionaire Warren Buffett's Berkshire Hathaway Inc. agreed to pay HK$1.8 billion ($231 million) for a minority stake in BYD Co., China's largest maker of rechargeable batteries.

Berkshire Hathaway unit MidAmerican Energy Holdings Co. will buy 225 million BYD shares, equivalent to a stake of about 10 percent, in the Shenzhen-based manufacturer, according to a statement issued through Business Wire today.

Omaha, Nebraska-based Berkshire Hathaway is tapping into rising global demand for environmentally friendly technology. The partnership with MidAmerican would help BYD bring its electric vehicles and other environmental protection measures to the global market, Wang Chuanfu, the Chinese company's chairman, said in the statement.

``As worldwide discussions relating to global climate change and environmental respect continue, the technologies being developed by BYD will be an integral part of the future,'' MidAmerican Chairman David Sokol said in the statement.

BYD aims to start selling gasoline-electric hybrid cars in the U.S. as early as 2010, joining larger rivals such as General Motor Corp. and Toyota Motor Corp., it said in January. It also plans to roll out its first all-electric auto in China next year.

Global Crisis

The BYD investment comes as companies including the largest U.S. financial institution, court high-profile investors such as Berkshire Hathaway after the global credit crisis wiped out $8 trillion of value from world stock markets since Oct. 31, according to data compiled by Bloomberg.

Berkshire Hathaway this week bought $5 billion of perpetual preferred stock in Goldman Sachs Group Inc.

BYD last month announced first-half profit fell 7 percent as costs for raw materials such as oil surged, wiping out a 44 percent increase in sales. BYD's share price has more than halved since peaking on Oct. 31. The stock edged up 0.7 percent to HK$8.40 on Sept. 26.

BYD shares fell to a five-month low on June 30 after Hong Kong's High Court dismissed its request to halt a lawsuit filed by Foxconn International Holdings, the world's biggest contract maker of mobile phones, for allegedly stealing trade secrets.
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Re: BYD 1211

Postby winston » Fri Oct 03, 2008 10:03 am

Deutsche Bank downgraded BYD Electronic (0285.HK: Quote, Profile, Research, Stock Buzz) to hold following a strong surge in the stock after U.S. billionaire Warren Buffett's Berkshire Hathaway (BRKa.N: Quote, Profile, Research, Stock Buzz) unit bought a 10 percent stake in the company last week
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Re: BYD 1211

Postby winston » Tue Dec 16, 2008 11:32 am

by millionairemind on Mon Dec 15, 2008 7:20 pm

BYD Adds Plug-In as China Gets Edge on Toyota, GM (Update2)
By Tian Ying

Dec. 15 (Bloomberg) -- BYD Co., the Chinese automaker backed by Warren Buffett, started selling the world’s first mass-produced plug-in hybrid, gaining an edge on Toyota Motor Corp. and General Motors Corp. in electric-powered vehicles.

The F3 DM can run for 100 kilometers (62 miles) using only batteries, Shenzhen-based BYD said in a statement today. Toyota plans to begin testing plug-ins, which can be recharged from household powerpoints, late next year, it said in August. GM aims to start selling the Volt plug-in in late 2010.

BYD surged the most in two months in Hong Kong trading after saying the new model and government tax breaks for small cars would help it almost double vehicle sales next year. China is encouraging automakers to develop alternative-energy vehicles to curb oil imports and to help local companies challenge GM and Toyota, the world’s biggest hybrid-car maker, overseas.

“BYD is making progress in the right direction,” said Yale Zhang, director at CSM Asia. “Still, a lack of fast recharging facilities and other infrastructure is handicapping BYD’s efforts.”

The automaker expects to boost total sales to 350,000 cars next year from an expected 180,000 this year, founder and Chairman Wang Chuanfu told reporters in Shenzhen today.

“The development of electric-powered vehicles is the best way for the Chinese auto industry to surpass other leading countries,” Wang said at an unveiling ceremony. BYD currently sells gasoline models such as the F3, F6 and F8. It plans to add at least five new models next year.

The company, also China’s biggest maker of rechargeable batteries, rose 16 percent to HK$13.32 at the close in Hong Kong. It has fallen 1.9 percent this year compared with a 46 percent plunge for the benchmark Hang Seng Index.

Rechargeable Batteries

The F3 DM’s batteries can be fully recharged from a power point in as little as seven hours and 50 percent powered via a quick charge at a specialist station in 10 minutes, BYD said. The car also has a gasoline engine as a back-up power source.

The car costs from 149,800 yuan ($22,000), said Xia Zhibing, BYD’s sales head. That compares with Toyota’s Prius, which costs from 259,800 yuan. The high price of hybrids and the lack of charging stations have damped demand in China. The Prius, the bestselling hybrid in China, racked up 748 sales nationwide in the first ten months of the year.

Still, GM started selling a Buick LacCrosse Eco-Hybrid in July and Nissan Motor Co., Japan’s third-largest automaker, intends to begin offering electric cars in China by 2012.

China Support

The Chinese government plans to support domestic automakers’ research into alternative-energy vehicles in a bid to have 60,000 on the roads of 10 cities by 2012. BYD has signed a deal for “financial cooperation” with Export-Import Bank of China, it said without elaboration.

The government may subsidize hybrid cars to cut costs for consumers, Wang said. The State Council is also set to consider a plan to scrap a sales tax on vehicles with engines of less than 1.6 liters, he added.

“It would be a very big push for cars sales,” if the sales tax plan is approved, Wang said. The government has also altered fuel taxes and is mulling ways to encourage people to buy cars on credit to help revive vehicle sales, which have fallen for three out of the last four months.

BYD will initially target the F3 DM at government agencies and corporate customers, Wang said. The Shenzhen local government and China Construction Bank today signed deals to buy a total of 50 cars.

U.S. sales of the F3 DM will likely start in 2011, Wang said. They may begin earlier if the company can complete the necessary regulatory steps more quickly than expected, he added.

Buffett’s MidAmerican Energy Holdings Co. in September bought 9.9 percent of BYD for HK$1.8 billion ($232 million). The stake sale may help the automaker boost its profile overseas and also reassure potential customers, Wang said.

“Buffett’s investment helps us enhance our brand image,” he added. “It’s a long-term investment and it will help our growth in the long run.”
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Re: BYD 1211

Postby LenaHuat » Mon Feb 09, 2009 9:06 am

Did any1 else watched Sissy Chen's prog last nite :?:
Wow, this BYD (Build-Your-Dream) guy got Warren Buffet's wallet in exchange for a model of his green car. That's really cool.
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Re: BYD 1211

Postby winston » Mon Feb 23, 2009 5:33 pm

Not vested.

BYD vehicle sales up 79.8% in Jan

Feb. 17, 2009 (China Knowledge) - BYD Co Ltd (BYD)<1211>, China's largest rechargeable batteries maker as well as automobile producer, sold 24,107 vehicles in January this year, representing a robust increase of 79.8% year on year, or 39.7% compared with that of last December, sources reported.

The mainland carmaker, in which U.S. investor Warren Buffett holds a 10% stake through MidAmerica
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Re: BYD 1211

Postby winston » Wed Mar 04, 2009 2:49 pm

DJ MARKET TALK: BYD Co's Electric Car Faces Fierce Competition-CS

1112 [Dow Jones] STOCK CALL: Credit Suisse keeps BYD Co. (1211.HK) at Underperform, citing severe competition in global electric car market, low brand awareness among consumers. Notes Mitsubishi Motors (7211.TO) will soon launch electric cars in HK, the "i MiEV" model has faster acceleration, higher horse-power, but similar charging-time vs BYD's "PHEV" model.

Notes General Motors (GM), Nissan (7201.TO), Toyota (TM) will also delve into market. Says BYD's current share price implies auto business is trading at hefty 27X 2010 P/E, which is unjustifiable; notes Buffett's MidAmerican Energy holds 39.6% stake. Keeps target at HK$8.00. Stock +1.7% at HK$15.26.
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Re: BYD 1211

Postby winston » Mon Mar 09, 2009 10:29 am

DJ MARKET TALK: Daiwa Starts BYD At Underperform, Target HK$13.87

0911 [Dow Jones] STOCK CALL: Daiwa starts BYD Co. (1211.HK) at Underperform with DCF-based target price at HK$13.87. Expects automotive division will benefit from government's recent support package, especially purchase-tax cut, and should become major earnings growth driver in FY09.

Adds, electric vehicle business offers long-term growth potential. However, expects FY09 industrial slowdown to hit IT-components business, but may recover in FY10. Notes stock trading at PER of 21.0X house's FY09 EPS forecast, much higher than other companies operating in BYD's business segments.

"Its valuation looks rich, although the long-term earnings growth outlook for its electric-car business is optimistic." Stock ended Friday up 0.8% at HK$15.00.
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Re: BYD 1211

Postby winston » Tue Mar 31, 2009 11:18 am

DJ MARKET TALK: BYD Co's Hefty Valuation Still Unjustified -CS

0943 [Dow Jones] STOCK CALL: BYD Co.'s (1211.HK) hefty valuation remains unjustified, Credit Suisse says. Notes FY08 net profit down 37% on-year at CNY1.021 billion, coming in 32% below house's forecast; says disappointment would have been even larger if stripping out CNY359 million government subsidies to auto division and CNY289 million FX loss for BYD Electronic (0285.HK).

Says auto division remained growth engine, but if stripping out government subsidies, operating profit margin dropped to 1.7% in FY08 from 5.3% in FY07; notes management expects similar amount of subsidies for next two years. Cuts FY09 earnings forecast by 10% on slower sales growth of handset-related business.

Notes stock trading at 12.7X FY10E P/E, substantial premium vs both handset, auto industry peers. Raises target to HK$8.80 from HK$8.00 based on FY10 SOTP, but says even with generous valuation multiple, still projects 35% downside to target; keeps at Underperform. Shares closed yesterday down 5.6% at HK$13.54; HSI down 4.7%.
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Re: BYD 1211

Postby winston » Mon Apr 06, 2009 3:24 pm

DJ MARKET TALK: CLSA Keeps BYD At Sell; HK$8.60 Target Price

1242 [Dow Jones] STOCK CALL: CLSA keeps BYD (1211.HK) at Sell with HK$8.60 target. Says, 2008 net profit disappointed at CNY1.02 billion, down 37% on-year, 20% below CLSA expectations. Following severe margin erosion in 2H08, says it's becoming clear that BYD is pursuing share gains instead of profitable growth.

Auto sales remain strong but not profitable. Handset margin pressure remains high as the company cuts prices to compete on orders. A new investment in solar will not make sales/profit contribution in the near future.

"The stock is trading at 25x/30x 08/09 PE and over 2x 09 PB. BYD remains expensive, even after considering its potential in hybrid cars." Stock +7.9% at HK$15.52
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Re: BYD 1211

Postby LenaHuat » Mon Apr 13, 2009 8:50 pm

Here's the fascinating story abt BYD :
http://money.cnn.com/2009/04/13/technology/gunther_electric.fortune/index.htm?postversion=2009041305

It was Munger's idea to buy BYD and not Buffet's.
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