BYD 1211

[profittaker]

For BYD to take off, first an EV market need to be present, market includes production, distribution, competitors, consumers and etc.. Then only we can see how good BYD can compete and win market shares. Furthermore, BYD is not the only Chinese auto maker that is attempting EV.

1. Beijing Auto + SAAD
2. DongFeng + Nissan
3. BYD + Daimler

Electric car buyers can skip plate lottery & restrictions

Source: http://beijing.globaltimes.cn/society/2 ... 42539.html

By Yan Shuang

Electric car buyers will be exempt from tax, driving restrictions and the car plate lottery, according to a plan for Beijing's automobile industry.

Electric vehicles in Beijing should number 100,000 in the next five years, with most of them for passenger use, according to the 12th Five-Year Plan established by the Beijing Association of Automobile Manufacturers and recently approved by the municipal Commission of Economy and Information Technology, the Beijing Youth Daily reported Wednesday.

"The plan sounds good, since electric vehicles don't pollute the way ordinary motor vehicles do," said Zou Jiefu, chief engineer with the China Energy Conservation and Environmental Protection Group. "The operational costs of electric vehicles are more affordable for residents."

Yet some questioned the plan, which may contribute to congestion by putting more cars on the road.

Zou also noted that electric cars don't come cheap here, with a price tag of over 300,000 yuan ($45,848).

"China is still five to 10 years behind some developed counties in electric car technology, and we don't have a developed charging system around the city," said an editor surnamed Duan with the automobile website bitauto.com.

"It's nice to boost electric vehicles, but I don't want to see it become a government ploy to trick the public into buying electric cars when they can't offer convenient charging services," Duan said.

"The government should first promote electric vehicles for public transport, Zou said.

"If the public sees the merit of having electric vehicles and it's really economical and convenient, they'll definitely choose to buy them over ordinary ones," he said.

[Atlas]

The Shanghai Auto Show will start on Thursday.

I believe this stock is ripe for 15 to 20% bounce upwards.

I jumped in here and at Geely (0175) this morning.

[profittaker]

BYD has debt and cash flow issue. see link

Raising capital is an urgent matter.
BYD has sold bond. see link
Now, BYD is going to raise capital from A share listing. see link

Yet, BYD is given price Target of HK$23 (last close ~HK$27.6) due to its debt issue. see link

It terms of its business, BYD holds the key to Electric Car i.e. batteries. It has proven it's reliability. see link what BYD needs is capital.

I don't see BYD would have any difficulty getting funding, the question is how would the capital raising exercise affect the share price.

If you read the link above carefully see link, shenzen IPO would price BYD at least HK$33.2. Given that Hang Seng China AH Premium Index at ~100, the IPO would provide a support.

Stand in the queue, hold not too long queue.

[winston]

Not vested

DJ SMRT: Considering Joint Venture With BYD To Develop, Sell Electric Vehicles

SINGAPORE (Dow Jones)--Singapore-listed public transport group SMRT Corp. Ltd. (S53.SG) said Friday it is in discussions with car-maker BYD Co. Ltd. (1211.HK) about the possibility of establishing a joint venture that would develop and sell electric vehicles.

SMRT said it has entered into a memorandum of understanding with BYD.

'In our day-to-day operations at SMRT, we look into air, water and energy management diligently,' SMRT Executive Vice President, Commercial Business & Roads, Teo Chew Hoon said in a statement.

'To further promote better air quality, we are exploring the use of electric vehicles in our bus and taxi fleet and are pleased to announce our MOU with BYD, one of the world's leading green technology companies.'

Source: Dow Jones Newswires

[profittaker]

IPO priced at RMB18 i.e. HKD 21.67. My previous entry had stop loss at around HKD25 and position closed.

[eauyong]

2011/07/08 16:19

BYD Company (01211) to set up R&D centre in HK Science Park

<ET Net News Agency, 8 July 2011> BYD Company (01211) announced today the setting up of a research and development centre in Hong Kong Science Park, and its collaboration with the Hong Kong Automotive Parts and Accessory Systems R&D Centre and the Hong Kong Productivity Council to promote the development of electric vehicles.

Collaboration between BYD and Hong Kong research institutes to develop electric vehicles will cover the integration of BYD's electric vehicles technology and automotive parts and accessory systems developed in Hong Kong for demonstration of their applications.

Three automotive parts and accessory systems developed in Hong Kong will be installed onto BYD's electric vehicles for demonstration. BYD will also participate in the Electric Cars Exhibition of the InnoCarnival this November. Both sides will also explore opportunities of a trial use of electric vehicles in Hong Kong. (HL)

Source: ET Net News Agency

[winston]

Not vested. How can these "expert" analysts be so far off ?

*DJ BYD Co. Target Cut To HK$19.00 Vs HK$46.00 By Morgan Stanley

[profittaker]

Surprised to see such a bigh drop to HK$16. Not vested.

China's Plug-In Carmaker BYD Checks the Wires

Weak buyer demand and dealer discontent preceded the surprise resignation of automaker BYD Co.'s Xia Zhibing, the company's vice president for auto sales, in early August.

But the woes at privately owned BYD apparently run far deeper than the anemic sales figures suggest, indicating Xia might have decided to jump from a floundering ship.

BYD recently listed on the Shenzhen Stock Exchange but its debut share prices fell short of market expectations. Shortly thereafter, it reported dismal half-year sales results.

The company reported selling about 220,000 vehicles in the first six months of 2011, down 23 percent from the same period last year. The report came August 23, less than two weeks after Xia announced through a microblog that before leaving he had "misled the company sales team" due to "eagerness for quick success and instant benefits."

While under pressure to boost sales, Xia said he'd been too harsh with the company's retail dealers. He failed to elaborate, however, declining media interviews.

Eight years ago, BYD was a maker of lithium-ion batteries that made a major leap into the auto industry. Not only did the company attract an investment from U.S. billionaire financier Warren Buffet, but for a time BYD's sales results backed up these aspirations.

According to company statements, BYD booked 48.4 billion yuan in revenue last year, a 21-fold increase from 2002, when the Shenzhen-based company listed on the Hong Kong Stock Exchange.

But Tang Jun, an analyst at GF Securities, said BYD is currently working through the growing pains any rapidly developing company may face.

read more http://english.caing.com/englishNews.js ... 1&page=all

[profittaker]

Me too, still watching this ticker. Not vested.

What went wrong

BYD was once the star of the Chinese auto industry. BYD’s founder, Wang Chuanfu was said to be a combination of Jack Welch and Thomas Edison. His company, meanwhile, made bold predictions of becoming the largest Chinese auto manufacturer by 2015 and the largest in the world by 2025.

Indeed, as one of China’s youngest auto companies, BYD exploded onto the scene in 2003. Within just a few years, its F3 and F0 models became among the best selling vehicles in their class. BYD ramped up production rapidly, even purchasing a Changsha-based bus manufacturer.

Simultaneously, BYD built dealerships at “Shenzhen speed,” exploding from just 100 in 2005 to some 1100 by the end of 2010. It appeared to many that BYD’s draconian policies with its dealerships and its targeted dealer networks (A1, A2, A3,A4…) formed the ‘secret sauce’ of their success.

On top of all that, BYD became the darling of Warren Buffet and the media after a $232 million investment by Berkshire Hathaway. BYD promised to make lithium batteries that were cheaper and more reliable than anyone else. By combining their auto business with their battery business, it was assumed, BYD could conquer the burgeoning EV market and leave competitors far behind.

What went wrong?

Suddenly, less than two years after being featured on the cover of Fortune Magazine and being named as among the most innovative companies in the world by Fast Company, BYD appears to be on the ropes. Their land and factory complex was confiscated in Xi’an when the government determined that the land was obtained “illegally.”

BYD dealers have rebelled, staging protests against BYD’s upper management and harsh polices, some have thrown in the towel entirely arguing that BYD’s policies allow them no room for profit. Auto sales are falling, and profits are plunging.

If that wasn’t bad enough, BYD’s EV dream seems to grow dimmer by the day. BYD managed to sell just 400 F3DM’s in 2010. The e6, meanwhile, has faced repeated delays in the Chinese market, and its appearance in North America is more than a year behind schedule.

Poised for a turnaround?

The simple fact is that BYD expanded too quickly in its early years. Like an overheated economy, a correction will (and is) taking place. But, if managed correctly, BYD may recover a much stronger and competitive company than it was prior to 2010.

If one peers deeper, behind the doom and gloom presented in the media, BYD is actually showing signs of a turnaround. While the media was quick to cover the Xi’an land scandal, it made little mention that the regulatory agency later revoked it decision and returned the land and factories to BYD.

BYD has stopped its senseless dealership expansion and removed of number of redundant facilities. Furthermore, they abandoned their draconian policies and focused on improving the training of dealership personnel. It is said that the number of complaints lodged against BYD’s dealers has fallen to half.

Furthermore, BYD’s sales numbers mask an important trend: diversification. BYD’s meteoric sales boom from 2005-2009 was driven almost exclusively by just two models, the F3 and F0. Now, as those two models face growing competition and market saturation, their sales are declining.

The decline of the F3 and F0 is pulling down BYD’s sales numbers…but this does not represent a trend across all models. In fact, BYD’s newer models, such as the G3 and L3 are doing modestly well.

The S6 SUV has gotten off to a great start and is among the top selling SUVs in the country. I expect that the G6, to be released soon, will also do quite well. Unfortunately, it appears that both the S8 and M6 models are dead on arrival (a price cut on the M6 should solve that, but I see no hope for the S8 as it was misguided from the beginning).

BYD’s sales diversification is coupled with a strong push upmarket; away from the cheap vehicles that most Chinese auto manufactures produce. Geely, the only other large privately-owned Chinese automaker, experienced a similar drop in sales as it began its transition away from low-end vehicles in 2007.

Geely managed to pull through,and has reaped the benefits of higher-end vehicles…which carry larger profit margins. If BYD can manage to break through this ceiling, they too will be able to take advantage the larger profits margins it affords.

That said, BYD’s unique selling point has never been their gasoline vehicles, but rather their much touted plug-ins and EVs. While sales of the F3DM have been disappointing to say the least, the car is actually doing well in comparison to other electric vehicles being marketed in China.

The failure of the F3DM is as much the failure of the Chinese government as it isBYD’s. What you say? China’s government has hefty support for “New Energy Vehicles,” therefore we cannot blame the government for BYD’s failure?

The reality is that China’s government has been very resistant to subsidizing EVs and plug-ins. In 2009 the government began providing up to $7,500 in subsidies for plug-ins and $8,800 for full EVs. That may sound like a great deal, but the subsidies were only available in 13 Chinese cities, and even then only to fleet buyers…not private individuals.

The subsidy program was expanded to 20 cities in 2010, but even now, only 5 cities actually subsidize the private purchase of New Energy Vehicles (Beijing may be added this year). I believe that China’s government, which favors their own state-owned giants like BAIC or SAIC, is waiting until their own companies catch up in battery technology before rolling out a comprehensive/national plan to bring EVs to the forefront.

This is unfortunate for BYD, and may make significant EV sales impossible for a few years. Nonetheless, BYD’s much-delayed e6 is showing some limited success. Last year, fifty e6s were deployed as taxis in a joint venture with the Shenzhen government. After a year of operation, the e6s had no safety incidents and despite frequent rapid charging, had less than predicted levels of battery decay. This year, the Shenzhen government has ordered 250 more.

Hertz has signed on to begin renting the e6 in select cities, and a redesigned (and much improved) version of the e6, called the e6B or e6 Sport should go on sale in China by the end of October. Meanwhile, plans to export the e6 to North America are steadily moving forward.

BYD recently launched a redesigned website for North America, and appear ready to begin shipping their vehicles in early 2012. Development of the joint BYD-Daimler luxury EV is said to be going smoothly as well. We should expect to see a prototype by the end of the year, with production beginning sometime next year.

BYD’s K9 electric bus seems to be generating a fair degree of attention as well, and may prove to be BYD’s savoir. The economics of electric buses may prove easier to justify as they follow pre-determined routes and therefore require fewer charging stations than taxis or private EVs.

In the near term, the K9 could be the breadwinner for BYD. Already the Shenzhen government has ordered some 200 buses, and Changsha has followed with an additional 100. Reportedly, the Chinese central government also ordered 70 and orders for small numbers of K9s have poured in from Taiwan, Hong Kong, Singapore, Los Angeles, Rotterdam, and Frankfurt. Though the orders have typically been small, just a few units, they are intended as test orders and could lead to large fleet orders in the future.

BYD clearly has their work cut out for them. There is no denying that BYD bit off more than it could chew…and now is dealing with the consequences. But I wouldn’t give up on BYD just yet. How one views BYD is a matter of seeing the glass half full or half empty. The choice is yours.

Link to the Article

[profittaker]

China's Largest and First Environmentally-friendly Battery Storage Station is in Service

SHENZHEN, China, Sep 30, 2011 (BUSINESS WIRE) -- China Southern Power Grid (CSG) -- the second largest utility company in the world -- has completed construction of China's largest battery energy storage station (ESS) as well as the World's first megawatt-level, grid-connected, environmentally-friendly, Iron-phosphate (Fe) battery storage station for commercial use, integrating BYD technology. Chinese CSG officials reported, "This Energy Storage Station is capable of charging or discharging over 12 Mega-Watt-hours or 3 Mega-Watts for 4 hours off of or onto the grid -- this is an outstanding accomplishment!" BYD's Chairman, Chuanfu Wang, notes that BYD is at the cutting edge of "a new energy revolution" across China and aims to "lead the world in installing environmentally-sound, battery energy storage systems."

Called the "Shenzhen Baoqing Battery Energy Storage Station," this CSG ESS is located in the Longgang District of Shenzhen City and is tied to a 110 Kilo-Volt (KV) substation supporting the rapidly growing Biling Industrial Park. The system's enabling technology is the BYD Fe (Iron-Phosphate) batteries, BYD's BMS (Battery Management System), a PCS (Power Conversion System) and an energy storage data station which monitors and controls the system to ensure holistic and efficient utilization. The multiple functions of the ESS include:

-- Load-following/Load Leveling or charging during the grid's lowest-usage-periods (i.e. night-time) which make other generation sources like ICE, Coal or Nuclear much more efficient (since the night usage of these stations may be as low as 40% utilized, but they still must run all night);

-- Dispatchable energy during periods of high demand to peak-shave (i.e. day-time spikes in demand);

-- FRR/power quality services to allow millisecond fast frequency adjustments on the grid caused by irregular sources (like wind or solar or power outages) and RRI/ramp-rate control and arbitrage for large renewable installations attached to the grid;

-- Electricity balancing and regulating voltages (reactive power/VAR support) on the grid due to irregular sources like named above;

-- Back-up power sources which guarantees distributed power supply closer to demand consumption during crucial events (e.g. summer outages and cascading regional brown outs which could shut down production and commerce).

The Baoqing Battery Energy Storage Station is in its first stage of implementation (with 3MW maximum output for 4 hour duration), but was designed to eventually have a 10MW output for 4 hours (40 -- 50 MWh) with over a 25 year service life before battery replacements may be needed. The next phases will expand the station's power output step-by-step. BYD and CSG are hoping this real-world application and their partnership will promote the rapid development and implementation of distributed, environmentally-friendly, high-tech, energy storage solutions across the World. See more at www.facebook.com/bydcompany and www.byd.com .

source: http://www.marketwatch.com/story/chinas ... 2011-09-30