BYD 1211

[winston]

DJ MARKET TALK: BYD Rally Unsustainable, Sell - UOB KayHian

1412 [Dow Jones] UOB KayHian says BYD's (1211.HK) recent share-price rally is due to euphoria over the strong recovery of its automobile business, burgeoning growth in electrical car sales and strong order flows from Apple (AAPL) (Apple disclosed its list of suppliers, which included BYD, for the first time).

"We found these rationales groundless, and maintain our Sell rating (HK$7.00 target price) as earnings recovery is remote and valuation remains stretched."

UOB says BYD's automobile segment still stuck with inventory glut, while new energy businesses are not coming through, and business from Apple is minimal. BYD is down 0.4% at HK$23.00 but is still up 36.6% so far in 2012.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: BYD's Premium Valuation Hard To Justify - Macquarie

1058 [Dow Jones] STOCK CALL: Macquarie lowers BYD Co. (1211.HK) target price to HK$20.80 from HK$23.70 on a sum-of-the-parts methodology;

It cuts its earnings estimates by 53% for both FY12 and FY13, to reflect the lower-than-expected auto sales in 2011 and order delays in the handset component business, and keeps the stock at Underperform.

The house believes BYD is past the worst period, having quickly made the necessary adjustments to its strategy, and has seen improvements in two of its three major business segments - autos and mobile handset components - since 3Q11.

Still, Macquarie says BYD is trading on a FY12 P/E of 40X and 29X for FY13, "a premium that we believe is difficult to justify." The stock is up 2.0% at HK$24.90.


Source: Dow Jones Newswire

[winston]

not vested


Earnings Revision/Risk

We maintain our 2012-14 net profit forecasts. Upside risk to our estimates could come from larger government subsidies.


Valuation/Recommendation

Despite a one-third drop in share price from its recent peak of HK$30.00, BYD’s valuation remains stretched at 39x 2013F PE.

Given the considerable earnings risk, financial risk and stretched valuation, maintain SELL and target price of HK$13.50, based on 1.4x 2012F P/B, on a par with peers’ average.


Source: Dow Jones Newswire

[winston]

not vested

DJ BYD Co e6 Electric Car Passes All Tests Required By Authorities

HONG KONG (Dow Jones)--BYD Co., the Chinese auto maker backed by Warren Buffett, said Tuesday its BYD e6 electric car, one of which caught fire in a collision on Saturday, has passed all the tests required by the relevant authorities.

The Chinese car maker in a statement that the batteries used by e6 electric cars have undergone abuse tests and the battery modules didn't ignite on 50% deformation. The e6 vehicle that caught fire killed three people in the southern Chinese city of Shenzhen.

"Any vehicles undergoing multiple crashes and spinning like the one in the 5.26 (May 26) traffic accident will result in great danger for the passengers and driver, even gasoline-powered vehicles might burn," it said.

BYD said it doesn't have access to the electric car involved in the accident as it is currently being retained by the traffic police department in Shenzhen. The company said it will cooperate with the relevant authority over the investigation.

The company "strongly believes" that the incident won't have a negative impact on the development of new energy industry, it added.


Source: Dow Jones Newswires

[winston]

BYD hits brakes as profit slumps

Billionaire Warren Buffett- backed mainland carmaker BYD (1211) shares dropped up to 5.9 percent yesterday after CLSA said it expects the firm's full-year net profit to slump 97 percent.

The broker also slashed its target price for the stock to 41 HK cents, from HK$7.40.

"With disappointing [first- half] results of 16 million yuan in net profit [down 94.03 percent from a year back], we think BYD is likely in worse shape than we thought.

"We now think the company will likely deteriorate further due to declining business in mobile phone components, rechargeable batteries and new energy," a CLSA report warned.

It now sees BYD's full-year net profit at 43 million yuan, down 97 percent from 2011.

But Standard Chartered and Macquarie set BYD's target price above HK$10 per share.

BYD closed 3.7 percent lower at HK$14.70.


http://www.thestandard.com.hk/news_deta ... 20926&fc=4

[winston]

not vested

<Research Report>JPM raises BYD COMPANY (01211.HK) 2014 EPS earnings forecast by 13%, target at $65

In the latest research report, JP Morgan noted that BYD COMPANY (01211.HK)'s management had expressed confidence in the JPM Global China Summit in terms of new electric vehicles and the 1H14 profit targets.

The research house raised BYD's 2014 EPS forecast by 13%, while the target price was maintained at $65, with Overweight rating remained.

JP Morgan re-valuated BYD ELECTRONIC (00285.HK) and lifted its 2014 net profit forecast by 27% to reflect the higher 1H earning forecast.

The management believes the company's battery business is on its right track of development.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>BYD COMPANY (01211.HK) target lowered to $34, reiterated Sell - Citi
Jun 17, 2014

Citigroup believes Tesla announced on Thursday that it will open more patents to its rivals, this may allow BYD COMPANY (01211.HK) to get more e-vehicle technology but it will also face increasing competitions, which may undermine the enterprise value of its existing e-vehicle business.

Hence, the research house reduced the company's target price from $39 to $34 and reiterated the Sell rating.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>G Sachs cuts BYD target price with Neutral rating
May 27, 2014

In a research report, Goldman Sachs noted that on 23 May, after trading hours, BYD COMPANY (01211.HK) announced to issue 121.9 million new shares which represent 4.92% of the enlarged issued share capital of the company, and the issue price of $35 per share represents a discount of 14.95% to that day's closing price.

The net proceeds of $4.2 billion is expected to be used as general working capital.

In particular, the company will enhance its investment for battery capacity expansion, R&D and market for the new energy business.

Though the issue of new shares will dilute the earnings per share, the research house believes the group's net gearing ratio will fall from 78% in the first quarter to 56% at the end of the year.

Due to the disposal of shares at a discount, the H shares' price is expected to be under pressure in the short term.

The broker reduced its EPS forecasts for 2014-16 by 4.9%/1.5%/2.4%.

According, the target price was lowered by 1% to $44.47, indicating there is till 8.1% upside potential. The rating is unchanged at Neutral.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>BYD COMPANY (01211.HK) initiated Overweight, target at $67 - JPM
Apr 29, 2014

In the latest research report, JP Morgan initiated the Overweight rating for BYD COMPANY (01211.HK), with target price $67.

The research house noted that the stock has risen 80% over the past 12 months, and the new energy car business has account for 65%, from 30%, for the market cap.

The Company's 2014 new energy car shipment was guided to grow 7 times yearly. JP Morgan expects 2015 and 2016 shipments will grow 1.3 times and 51 times, respectively, becoming the catalyst for the stock price over the next 12 months to 18 months.

The report mentioned that the new energy car market will be booming this year, on back of government policies.

BYD has entered the market for a long time, and other local manufacturers need years to catch up with it.

Source: AAStocks Financial News

[winston]

not vested

China's BYD shares slide 9 pct in Hong Kong after H1 earnings drop

Aug 25 (Reuters) - Shares of BYD Co Ltd were set to open 8.7 percent lower in Hong Kong on Monday, after it posted a drop in first-half net profit as sluggish sales of gasoline cars offset a surge in its electric vehicle business.

Stock of the Chinese carmaker, backed by U.S. billionaire Warren Buffett, were set to open at HK$44.90, the lowest since June 26, lagging a 0.3 percent fall in benchmark Hang Seng Index .

BYD saw its first half net profit fell 15.5 percent to 360.7 million yuan ($58.64 million) from 426.9 million yuan a year earlier, dragged down by a 27 percent fall in vehicle sales volume.

Source: AAstocks.com