BYD 1211

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<Research Report>BYD COMPANY maintained at Outperform with target cut to $71 by C Suisse

According to a Credit Suisse research report, BYD COMPANY (01211.HK)'s interim results were in line with expectations, but the management's 3Q net profit guidance of less than RMB50 million missed the full-year estimate by 4%, which was mainly due to the weak sales of gasoline cars based on the company's opinion.

The broker expects the market is likely to revise down the company's estimates and its share price performance may show negative response within the week.

The company's profit forecasts for 2014 and 2015 were cut by 5% and target price was reduced from $74 to $71.

Credit Suisse kept the Outperform rating on the stock, as it is the best choice among electric vehicle companies. ~

Source: AAStocks Financial News

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<Post-Result>Latest ratings & target prices of BYD COMPANY (01211.HK)

BYD COMPANY (01211.HK) reported interim net profit had declined 15.5% yearly to RMB361 million. The group issued profit warning, expecting net profit for the 9 months ended 30 September will move down 11.7%-22.45% yearly to RMB361-410 million. The followings are the latest ratings and target prices of BYD COMPANY by 9 brokers:

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Name of broker / Rating / Target price (HK$)

Credit Suisse; Outperform; $71 (trimmed from $74)
JP Morgan; Overweight; $69
Morgan Stanley; Equalweight; $43
Mizuho: Neutral; $40
Deutsche Bank: Hold; $37.3
Citibank: Sell; $34
Barclays: Underweight; $24
UBS: Sell; $22.8
Macquarie: Underperform; $12.8
~

Source: AAStocks Financial News

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Surge of new energy in vehicles revs BYD shares

Mainland carmaker BYD (1211) saw shares rebound yesterday after chairman Wang Chuanfu said he expected new energy vehicles to meet the 20,000 units annual production goal and two new models to boost sales of petrol-driven cars.

BYD shares fell 9 percent yesterday morning but bounced back to HK$50.30, up 2.24 percent.

The firm had posted a first-half net profit of 361 million yuan (HK$454.61 million) on Sunday, down 15.5 percent from 12 months earlier as sales of petrol-driven cars slumped.

But the sales volume of new energy vehicles made up 10 percent of revenue.

Wang said the firm has a 37-percent market share of China's new energy car sector. But it is unable to meet demand due to limited capacity to produce automobile batteries.

But he expects monthly production of new energy cars to rise by 500 units to 1,500 in the second half and to reach 3,000 units by February after a Shenzhen plant goes online.

The demand for public electric vehicles from the domestic and overseas market is also strong.

Wang is confident too that the sales of petrol- driven cars will stop falling with the two models being launched in the second half.

Meanwhile, subsidiary BYD Electronic (0285) announced that interim net profit jumped 86.3 percent on strong demand for batteries for mobile phones and its assembly business. Its shares rose 5.79 percent to HK$6.94.

Neither firm proposed an interim dividend.

Source: The Standard HK

[winston]

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Valuation

Considering the lower-than-expected sales on the Company’s traditional car in 1H14, we change the Company’s estimated EPS to RMB0.51 and 0.92 in 2014 and 2015 respectively.

Although we have positive views on the Company’s future development, we remind investors to concern about the possible frustrations the Company may encounter in the cultivation of the individual new energy vehicle market.

The short-term benefits have been priced in partly, and we maintain the rating to Cautiously Accumulate, with the target price to HK$60, equivalent to 93/51x P/E and 4.6/4.3x P/B in 2014/2015 respectively.

Risk

1) Slackened economy largely reduced demands for auto, handset and batteries;
2) Uncertainty of new energy’s future development;
3) Rising raw material cost;
4) Lower‐than‐expected new car model sales and distributor network risk

Source: Phillips

[winston]

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BYD COMPANY (01211.HK) once tumbles 9% on broker's bearish report

BYD COMPANY (01211.HK)'s rating was downgraded to Underweight by Morgan Stanley with target price slashed by 7% to $40 after the company posted a 92% decrease in its quarterly profit.

The stock once sank below the 10MA, 20MA and 50MA with the trough at $49.1, down 9%.

The stock last stood at $50.35, down 6.7%, with volume rising to 9.54 million shares.

Source: AAStocks Financial News

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BYD stock plunges 9.3pc

Shares of car battery maker BYD Co (1211) plunged 9.3 percent yesterday on reports the Chinese government was considering abandoning plans to expand the use of pure electric buses as they've proven to be inefficient and uneconomical.

"The experiment of using pure electric buses has failed in all the tested cities," Caixin quoted Wang Zidong, an official in charge of China's power vehicle test center, as saying.

"We are `burning a lot of money' and no good commercial model has been formed."A dual- power trolley bus might replace electric buses.

Wang said two reasons led to the difficulty of putting pure electric buses into commercial operation.

First is the lofty infrastructure investment.

"For example, during the APEC meeting, Beijing used 200 pure electric buses. Just building charging stations cost at least 60 million yuan (HK$75.6 million). How can a city bear such an expense?" Wang said.

Second, the maintenance fee is costly. "Batteries of such vehicles have short life, so they should be changed quite often. But it costs hundreds of thousand yuan to change a battery. Always the buses were set aside after the battery is used," Wang said.

Barclays said if the news is true, Shenzhen- based BYD will be severely affected as it has invested heavily in developing pure electric buses.

Barclays maintains an "underweight" rating, keeping a target price of HK$31 24.5 percent lower than yesterday's closing price of HK$41.05.

But BYD said the reports are inaccurate and pure electric buses remain the modern trend.

Source: The Standard HK

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BYD Stumped by Stock’s Record Slump in Hong Kong

BYD Co. (1211), the electric carmaker backed by Warren Buffett’s Berkshire Hathaway Inc. (BRK/B), tumbled by a record in Hong Kong trading, prompting the company to issue a statement saying that it’s puzzled by the rout.

BYD slumped 29 percent to HK$25.05 at the 4 p.m. close as the volume of trading on the stock surged to more than 40 times the daily average in the past year. The company’s Shenzhen, China-traded shares dropped by the 10 percent daily limit.

The company is monitoring today’s share-price decline closely, Edward Zhou, a spokesman for the Shenzhen, China-based company, said in an e-mailed response. The automaker said in a filing with the Hong Kong stock exchange that it is unaware of reasons for the share movement.

Though the stock was little changed during morning trading, BYD began tumbling at about 2 p.m. local time. In less than an hour, BYD shares were down as much as 47 percent for the day before recouping some of those losses.

“There are a lot of rumors flying around in the market but there’s nothing concrete at the moment,” said Mari Oshidari, a Hong Kong-based strategist at Okasan Securities Group Inc. “It’s hard to pinpoint what’s causing the sharp decline in the afternoon.”

The maker of the E6 electric car has benefited from Chinese government incentives to promote the purchase of alternative-energy vehicles and subsidies to build charging infrastructure. BYD is building electric buses in the U.S. and won a contract to supply Brussels with its E6 for use as taxis.

Source: Bloomberg

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<Research Report>BYD COMPANY (01211.HK) target kept at $20, rated Underperform - Macquarie

Macquarie stated that BYD COMPANY (01211.HK)'s share price sank by 49% yesterday before the loss narrowed to 29% at close, and the management clarified in a tele-conference that all of the businesses are in normal operation and it is not aware of any reasons behind the fluctuation.

The bank believes that the central government will continue to support the development of new energy vehicles, but BYD may not be able to catch up with changes in battery technology;

Meanwhile, there are also many international brands into the mainland market for competition.

The broker reiterated the share price of BYD Company at $20 and the rating was Underperform.

Source: AAStocks Financial News

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BYD backs electric power

BYD Co (1211) chairman Wang Chuanfu vowed yesterday to produce electric vehicles.

Along with buses, taxis and private cars, the firm will also make electric vehicles for the mining industry, airports and logistics industry, he said.

Wang also launched Shenzhen-based BYD's electric-gasoline hybrid "Tang" sports utility vehicle in the mainland city yesterday.

To be sold at between 300,000 yuan (HK$374,000) and 600,000 yuan, the SUV consumes just two liters of gasoline per 100 kilometers.

The firm also plans to rent out E6 electric cars in the SAR through a third-party and is actively seeking orders from local bus operators, said its Asia-Pacific general sales manager Liu Xueliang.

Meanwhile, a spokesperson for New World First Bus said it has decided to purchase 10 single-deck electric buses, including five from BYD.

China should take advantage of the great opportunity to develop new-energy vehicles, Wang said, due to its reliance on imported oil and urgent need to protect the environment.

Remaining confident in BYD's business operation, Wang said he was calm even when the firm's H-shares slumped nearly 50 percent.

On December 18, the stock plunged 46 percent from HK$34.90 to HK$18.70 within two hours. No reason was given.

Its shares closed at HK$25.05 on that day dropping 28.84 percent and wiping out HK$9.29 billion in market capitalization.

Shares rose 2.55 percent to HK$28.10 yesterday.

Source: The Standard HK

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BYD COMPANY (01211.HK) A,H shares leap nearly 5%

BYD COMPANY (01211.HK) announced that it intends to sell the electronic components business for up to RMB2.3 billion and the company expects to record a gain before tax of over RMB1.6 billion from the transaction.

In addition, the company proposed to issue RMB3 billion corporate bonds. Credit Suisse lifted the company's H-share target price slightly to $72 with an Outperform rating.

BYD H shares soared over 7% yesterday and kept higher by 2% at market open this morning.

It once peaked at $28.4, reclaiming the 10MA and 20MA ($27.95), and last traded at $28.25, up 4.8%, with trading volume reaching 4.56 million shares.

Its A shares also hit the high at RMB39.93 and last stood at RMB39.7, up 4.8%.

Source: AAStocks Financial News