𝐇𝐢𝐞𝐫 𝐞𝐮𝐫𝐞 𝐁𝐘𝐃 𝐀𝐧𝐚𝐥𝐲𝐬𝐞
BYD is a very interesting company, which has also been in my portfolio.
BYD is a Chinese conglomerate, based in Shenzhen, which was founded in 1995. BYD, by the way, is the abbreviation for "Buld your dreams". Worldwide, the company is the largest producer of accumulators (e.g. for cell phones) and one of the largest automobile producers in China. This means that BYD is active in the production of energy (solar), storage (accumulators) and mobility (e-cars and buses).
BYD's products can be found almost everywhere. The batteries for cell phones are represented in almost all well-known smartphone brands and also in LED lights and solar modules you can often find their products.
The company has now split into several divisions (including BYD Electronic (components for cell phones - housings, keyboards) and BYD Auto, BYD LED, and soon BYD Semiconductors, for example). BYD is also working on building a Zero Emissions Energy Ecosystem.
The company has many special features and is really very broadly positioned and heavily involved in research. For example, it is primarily researching new types of high-energy cells with reduced weight and space requirements while increasing capacity (to increase the range of vehicles).
A major advantage in electromobility here was, of course, the preceding experience as a leading battery producer. Others have also recognized this - Daimler, for example, has formed a joint venture with BYD using Denza. There are also rumors of a collaboration with Apple, and BYD is also strongly represented in Europe with its electric buses.
The company is represented worldwide. There are a total of fourteen production facilities China, India, Hungary, Romania and the USA. In addition, the company is always buying up other companies and founding subsidiaries on a regular basis.
One of the interesting pieces of information I found during my research was the following:
Less attention was paid to qualified personnel, but work steps were simplified and precisely documented for so long that untrained and cheap personnel could be used. This and the already very low wages in Asia allowed BYD to offer its products significantly cheaper than the competition.
In addition, the company was voted the world's most efficient technology company by Bloomberg Businessweek in 2010. Warren Buffet also holds a 10% stake in BYD through his holding company MidAmerican Energy Holdings Co.
𝐂𝐡𝐚𝐧𝐜𝐞𝐧 𝐮𝐧𝐝 𝐒𝐭ä𝐫𝐤𝐞𝐧:
BYD is very well positioned in the market and the prospects look very good as well.
China is massively betting on electric cars to counter pollution and oil imports. Of course, this plays right into BYD's hands. Worldwide, there are also many tax advantages for the e-mobility sector, green energies, etc. - these subsidies are of course also very good for BYD, even if they represent a market intervention.
In addition, BYD is located in a low-wage country, which of course has great cost advantages over the competition.
Furthermore, BYD thinks long-term and focuses mainly on green technologies, which is why I see a very future-oriented company here, with a good basis for the future and almost a "must have" for all greentech investors. The competition is not that strong at the moment and there is no need to be afraid of the world-renowned carmakers.
It is also great that the company is very broadly positioned and plans many, good cooperations and convinces both as a supplier and with its own products.
Moreover, the operating profit in Q3 increased by 22 percent.
𝐑𝐢𝐬𝐢𝐤𝐨 𝐮𝐧𝐝 𝐅𝐚𝐳𝐢𝐭:
Above-mentioned subsidies can of course equally be seen as a risk, as they are an intervention in the market, as mentioned, and negative effects could already be observed here with the solar industry. Furthermore, China itself is of course also a risk and the political risk has to be considered (in fact, that was a reason for me to sell at that time - not necessarily been the right decision, but if you watched other big companies in China last year, the risk was just way too big for me).
Furthermore, we don't know where the future will take us - will we stick with e-mobility or will we move in other directions? The company may have to adapt in a short period of time.
In addition, the Q3 figures have disappointed investors: among other things, net profit fell by 28 percent in the past quarter (justified by tougher competition) and the global chip shortage is also affecting BYD. For the company, getting enough components for its vehicles is as problematic as it is for any other automaker.
These shortages are expected to continue in 2022.
BYD also still has legal problems - among other things, an important deal involving important raw materials (lithium) is currently still on the back burner.
So in conclusion: BYD is a super exciting company with many future prospects. However, I would not disregard the political risks. In addition, the share is relatively volatile and here you just need some resistant nerves - lie down and eyes closed and through. Recently, however, the share had quite a run behind it and ggfls one should consider how to proceed here now. However, I generally do not consider an investment here to be wrong.
𝐖𝐞𝐭𝐭𝐛𝐞𝐰𝐞𝐫𝐛𝐞𝐫 𝐟ü𝐫 𝐀𝐮𝐭𝐨𝐛𝐚𝐭𝐭𝐞𝐫𝐢𝐞𝐧:
1. LG Chemical
2. samsung
3. AESC
4. Panasonic
5. Volkswagen
6. Renault
7. Toyota
8. GM
9. tesla - Here you probably have the greatest interest to learn more: You can easily find out the most important things for yourself - on the stock market I would say that the company is one of the biggest competitors. What is an important factor for me: Even if Tesla is doing hammer well, in contrast to the company BYD writes black figures.
𝐅𝐚𝐜𝐭𝐬:
250,000 employees
WKN A0M0HG
Market capitalization: 60.72 billion CNY
Number of shares: 2,253,204,600
P/E RATIO: 12.9
KUV 0.77
Dividend: 0.86
𝐐𝐮𝐞𝐥𝐥𝐞𝐧 𝐮𝐧𝐝 𝐑𝐞𝐜𝐡𝐞𝐫𝐜𝐡𝐞:
https://de.wikipedia.org/wiki/BYD
https://www.it-times.de/news/byd-erhoeht-preise-fuer-elektroautos-was-dahinter-steckt-142890/
https://www.google.com/finance/quote/BY6:FRA?sa=X&ved=2ahUKEwj51t2rwcX1AhXoRvEDHUboCsMQ3ecFegQICxAc
https://www.onvista.de/aktien/BYD-Aktie-CNE100000296
http://www.byd.com/en/InvestorAnnals.html
