BYD 1211

[kuala888888]

74.15 +6.40 (9.45%)
12月1日 - 收盘
HKG 数据延迟 15 分钟 - 免责声明 范围 68.40 - 74.30 52 周 10.80 - 88.40 开盘 69.50 成交量 1470.92万 市值 1686.99亿 市盈率 83.55 股息/收益率 - 每股收益 0.89 股份 22.75亿

[kuala888888]

ti gong , tolong tolong
push to 80 + i wan to break even and escape liao ....

[winston]

DJ MARKET TALK: JPM Raises BYD Co To Neutral Vs Underweight
November 30

1450 [Dow Jones] STOCK CALL: JPMorgan upgrades BYD Co. (1211.HK) to Neutral from Underweight and raises target price to HK$63.00 from HK$40.00 after increasing FY09-11 earnings estimates by 20%-26% as company reported much better than expected 3Q09 results.

Adds, company's operating cash flow was strong due to automobile momentum, and net gearing ratio declined further to 13% from 39% as of June. Tips near-term share price momentum should be strong, with positive catalysts including: substantial upward consensus earnings revisions; strong auto momentum to remain intact in near term; and upcoming Copenhagen climate summit to rejuvenate interest and government commitment to new energy.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK:MS Ups BYD Co To Equal-Weight But Tips Don't Chase
November 30

1420 [Dow Jones] STOCK CALL: Morgan Stanley upgrades BYD Co. (1211.HK) to Equal-weight from Underweight, raises target price to HK$55.20 from HK$31.10 after increasing FY09-10 EPS forecasts by 35%, 42%, to factor in stronger-than-expected margin ramp.

Says with stock nearly 30% off peak, BYD trades at 26X MS' forecast FY10 EPS, which "looks more reasonable," but house doesn't suggest chasing stock from here. Adds, earnings upgrade chiefly reflects higher-than-expected auto margin, believe BYD's predominant sales scale of single model (F3) enables company to enjoy better-than-peers' cost structure, but such impressive margin trend might not be sustainable, owing to mounting competition, rising number of new models, likely raw material price hike.

Source: Dow Jones Newswire

[kuala888888]

BYD receives 15 bln yuan in credit - BOC

* Fund seen to be invested in solar energy, EV - analyst (Adds comments of BYD and analyst, details)

BEIJING, Dec 3 (Reuters) - Chinese car and battery maker BYD Co Ltd (1211.HK) has received 15 billion yuan ($2.2 billion) in credit from the Bank of China (601988.SS)(3988.HK), the bank said on Thursday.

Bank of China said in a statement on its website (http://www.boc.cn) the two firms signed a strategic cooperation framework agreement involving financial support of 15 billion yuan, without elaborating.

A BYD spokeswoman in Shenzhen declined to comment on the agreement or the purpose of the capital.
BYD does not lack cash and is likely to use the credit to invest in new areas, such as solar energy and new energy vehicles, said Frank He, an analyst with BOCI Research in Hong Kong.

"It is comforting for the company to secure a credit line," He said. "You never know whether credit would be tightened next year."

Shenzhen-based BYD, 10 percent owned by U.S. billionaire Warren Buffett's Berkshire Hathaway (BRKa.N), last month posted a [u]net profit of 2.34 billion yuan ($342.8 million) from January to September, sharply up from 777.8 million yuan the previous year

Source: Reuters

[financecaptain]

A very interesting article.
That is why domain knowledge is always key in looking at investment opportunities. Not just venture capital or private equity opportunities.
Macro picture is rosy, but micro evaluation requires strong domain knowledge looking into details and that makes a difference between a good and lousy research. Unfortunately most research out there are rubbish !

A Look Inside Buffett's Battery Bet
Asian Wall Street Journal, 11 December 2009
By MATTHEW FORNEY AND ARTHUR KROEBER

Chinese car-maker BYD just announced plans to launch its much-vaunted electric sedan next year in Los Angeles—setting Silicon Valley buzzing about how China's new green technologies are gaining an edge over the U.S. But do Chinese companies really have an edge when it comes to developing eco-friendly technologies?

A closer look at BYD suggests that at least in this case, no. The company boasts a timely product mix of cars and batteries—specifically, lithium-ion batteries, the battery of choice for new-energy cars—and its share price has increased six-fold in the last year. But its batteries are produced using 15-year-old methods, its successful traditional sedans are the cheapest in every class in which they compete, and its new-energy cars face troubling hurdles.

Like most Chinese manufacturing companies, BYD excels in low-margin, high-volume businesses. BYD has so far achieved success in the battery business by using simpler technology than its peers. To undercut its Japanese competitors, which deploy expensive robotic arms to make uniform battery cells, BYD reverted to manual assembly lines with inexpensive labor. The result was cheaply produced batteries of inconsistent quality. Although the company can rightly be proud that it has never faced a battery recall, it scraps 15-30% of its batteries because they fail to meet quality standards—far above the industry average of under 5%, according to German consultancy Roland Berger.

Inconsistent quality is a small problem when making mobile-phone batteries of one cell each: You simply scrap the batteries that don't make the grade. But it's an enormous problem for electric-car batteries, in which hundreds of cells, each the size of a pack of cigarettes, must charge and discharge with exact precision. A car battery works only as well as its worst cell. It is far from clear that BYD's labor-intensive process can achieve the uniformity of quality required for electric car batteries.

BYD has yet to bring a single hybrid or electric car to market and has repeatedly missed launch deadlines. Every BYD car sold to consumers so far has a traditional gasoline engine, and its models are popular in China not because they are high-tech but because they are ultra-cheap. The company claims its plug-in hybrid, the much-vaunted F3DM, went on sale a year ago. But this model has yet to appear in any dealership, leading industry observers to speculate its battery is not ready for prime time. The all-electric e6 was supposed to reach the U.S. this year, a launch date subsequently pushed out to 2011. But the e6 still hasn't passed Chinese safety tests, let alone more stringent U.S. tests. Advance reviews of prototypes have been scathing: Car and Driver reported, "We drive faster in our driveways."

Investment has been pouring in nonetheless: BYD grabbed the world's attention a year ago when MidAmerican Energy Holdings, a company controlled by Warren Buffett, bought a 10% stake for $230 million. After that, BYD's stock price climbed seven-fold and made chairman Wang Chuanfu China's richest man with a paper fortune of $5 billion. Along the way, BYD promised to sell America its first purely electric sedan.

When MidAmerican bought its BYD stake, the media jumped to the conclusion that Mr. Buffett was placing a bet on electric cars. Cannily, Mr. Buffett and MidAmerican executives made no effort to dispel this impression. But all evidence suggests their interests lay elsewhere. MidAmerican Energy Holdings runs power grids that generate more energy from renewable sources than any major American utility. MidAmerican's subsidiary in Oregon, PacifiCorp, recently erected a building the size of ten 40-foot storage containers that houses BYD batteries. Those batteries are being tested for the storage of wind-generated energy. BYD's real contribution to Mr. Buffett's portfolio will probably be low-cost, relatively low-tech batteries that store wind and solar power for use on days that are breezeless and cloudy.

Make no mistake, BYD is a well-run company, and its chairman Mr. Wang is rightly regarded as a brilliant entrepreneur. But the true competitive advantage of BYD, as with most Chinese firms, is its ability to commoditize technology products, thereby making them cheaply available to a wider range of customers. This is a useful function, and it will be critical in ensuring that new-energy products can rapidly increase market share against traditional carbon-based technologies. But there is little evidence that Chinese companies are ahead in this new-energy innovation race.

Mr. Forney is president of Fathom China, a corporate research firm. Mr. Kroeber is the Beijing-based managing director of economic consultancy GaveKal Dragonomics.

Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved

[winston]

UPDATE -China's BYD lifts 2010 auto sales target 14 pct

* Raises 2010 vehicle sales target by 14 pct
* To start selling e6 electric car in China in Q1
* Plan to sell e6 in the U.S. remains unchanged (Adds details)

By Joanne Chiu

HONG KONG, Dec 30 (Reuters) - Chinese battery and car maker BYD (1211.HK), backed by U.S. billionaire Warren Buffet, said it has raised its 2010 sales target, as it prepares to roll out its first electric cars.

BYD, 10 percent owned by Warren Buffett's Berkshire Hathaway (BRKa.N), aims to sell 800,000 vehicles next year, up from a previous target of 700,000 units, said Paul Lin, manager of the company's marketing department.

He attributed the revision to robust demand from Chinese consumers following Beijing's 4 trillion yuan ($586 billion) economic stimulus plan, which includes several measures specifically aimed at boosting car sales.

"The company already reached its 2009 target of 400,000 vehicles in November, so now we are setting our 2010 target to double that number at 800,000 units," Lin said, adding that this year's final sales should come in at around 440,000 units.

BYD's F3 sedan was the best-selling car in China in the first 11 months of this year, leading other popular domestic and foreign models, such as, Hyundai Motor's (005380.KS) new Elantra and Chery Automobile's QQ, official data showed.

To help meet market demand, BYD's new bus plant in the central Chinese city of Changsha and a car plant in the northwestern city of Xian will start operation next year, adding up to 700,000 units of capacity, Lin said.

Henry Li, general manager of BYD Auto's export arm, told Reuters in July that the firm aims to be a major global player by 2025, with vehicle sales of 8-9 million.

BYD, which had sold several hundred of its plug-in hybrid, F3DM, unveiled in December of 2008, plans to start selling its first electric car, the e6, in China in the first quarter of 2010, Lin said.

The e6 had passed government safety inspections in the country and received other necessary permits, he said, adding the firm remained committed to export the model to the United States next year.

BYD's shares, traded in Hong Kong, have surged more than 422 percent since the beginning of this year, leading a roughly 49 percent gain in the broader market .HSI and bolstering its founder, Wang Chuanfu, to the top of Forbes 2009 list of China's wealthiest.

The shares fell 3.78 percent in early afternoon trading on Wednesday, lagging a 0.51 percent fall of the market.

http://www.reuters.com/article/idUSTOE5 ... arketsNews

[winston]

Not vested.

DJ MARKET TALK: UOB Cuts BYD Company To Sell; HK$40 Fair Price

0100 GMT [Dow Jones] STOCK CALL: UOB KayHian downgrades BYD Company (1211.HK) to Sell from Hold; says reduction in purchase tax discount for small cars would affect company the most, given its heavy reliance on this vehicle category.

Notes, Chinese government recently announced it will reduce purchase tax discount for small sedans (displacement of 1.6L or below) from 50% to 25%, while purchase tax on small cars will increase from 5% in 2009 to 7.5% in 2010.

House lowers its fair price to HK$40 from HK$76.60 after revising down net profit forecasts for 2010 and 2011 by 15%, 21%, respectively to reflect lower sales volume growth assumptions. Stock ended +2.0% at HK$69.80 Monday.

Source: Dow Jones Newswire

[winston]

Buffett’s Chinese Electric Car Coming to U.S. in 2010

China's Build Your Dreams Auto took aim at the U.S. market Tuesday with the unveiling of a four-door electric car at the Detroit auto show.

BYD, 10 percent owned by Warren Buffett's Berkshire Hathaway, aims to have the e6 ready for sale in North America by the end of 2010, which would make it the first Chinese automaker to enter the highly competitive market.

"As a major developer and manufacturer of electric vehicles, BYD is devoted to creating safe, efficient and affordable electric vehicles," said Henry Li, general manager of BYD Auto Trade Export.

The full-sized, four-door electric vehicle offers a maximum range of 205 miles, a maximum speed of 87 miles per hour, an acceleration from zero to 60 of less than 14 seconds and operates at a third of the cost of a comparable gasoline vehicle, Li said.

It would be powered with a home charging station and BYD also hopes to establish a network of charging poles at offices, stores and standalone stations.

BYD is China's fourth largest automaker and sold 450,000 vehicles there in 2009, a 180 percent increase from a year earlier.

It aims to sell 800,000 vehicles in China this year and to become the nation's largest automaker in 2015.

BYD hopes to eventually establish research and development and manufacturing facilities in the United States, Li said at a press conference.

The automaker is still working on establishing a distribution network in the United States.

http://moneynews.com/Headline/warren-bu ... /id/346154

[winston]

DJ MARKET TALK:BYD Solar Unit Offers Limited N/T Profit Upside-MS
Jan 26, 2010

1604 [Dow Jones] STOCK CALL: Morgan Stanley views BYD's (1211.HK) recent progress in solar business as more of a long-term strategic benefit with limited earnings upside for 2010.

"It might be a positive, but we believe it is still a bit early to determine if BYD can expedite its vertical integration and stay pricing competitive in view of deteriorating pricing environment softened by heightened competition."

Notes auto (gasoline based) likely to remain BYD's near-term earnings anchor. Rates stock at Equalweight to reflect likely lackluster contribution of new business (auto batteries, power storage) on top of a full valuation. Sets target at HK$55.20. Stock down 8.0% at HK$53.80; HSI down 2.4%.

Source: Dow Jones Newswire