Recently, Berkshire Hathaway, a subsidiary of Buffett, has been reducing its holding.$BYD COMPANY (01211.HK)$This action has attracted much attention.

According to the latest disclosed data, the proportion of BYD's shares held by Berkshire Hathaway has dropped to 4.94%. According to relevant regulations, there will be no need for disclosure for subsequent shareholding reduction operations.

From the current trend, the trend of BYD's stock has not been greatly affected.

As of publication, BYD Company Limited has fallen 3.09%, reporting at HKD 238.4.

It is worth noting that BYD's stock price has still risen 17.4% since the beginning of 2024. Zhongtai International pointed out this morning that the market may have digested the news of Buffett's continued reduction of holdings and is optimistic about BYD's future development.

When did Buffett start reducing his holding in BYD?

According to public information, Berkshire Hathaway first announced the reduction of holdings in BYD in August of 2022, and subsequently carried out multiple reduction operations in 2023 and 2024.

For the reason for the reduction, according to multiple reports, Buffett may have been based on a variety of considerations, including better capital allocation, achieving investment returns, adjustments to investment strategies, and possible shifts in corporate strategic focus.

Institutions are bullish on BYD's second-quarter performance.

Despite market concerns over Buffett's reduction of holdings, BYD, as a company with a leading position in the new energy vehicle field, is still the focus of investors' attention and expectations for long-term development prospects.

According to BYD's financial report data for the first quarter of 2024, the company achieved total operating revenue of CNY 124.944 billion, a year-on-year increase of 3.97%. Net profit attributable to the parent company was CNY 4.569 billion, a year-on-year increase of 10.62%. After deducting non-recurring gains and losses, the net profit attributable to the parent company was CNY 3.752 billion, a year-on-year increase of 5.24%.

According to BYD's sales data released for June and January-June 2024, the data shows that in June of this year, BYD’s various brands sold a total of 341,658 new cars, of which passenger car sales reached 340,211, a year-on-year increase of 35. 2%; From January to June 2024, BYD's cumulative sales of passenger cars reached 1,607,145 vehicles.

Deutsche Bank has recently been bullish on BYD's second-quarter performance. According to its report, BYD's net profit in the second quarter of 2024 is expected to reach CNY 8.6 billion, a year-on-year increase of 26%. At the same time, the net profit per vehicle of BYD will increase from CNY 6,300 in the first quarter to CNY 8,000.

The report specifically mentioned that BYD's stock sales in June reached a new monthly high. Among them, the delivery performance of the Qin series cars was particularly outstanding, especially the Qin L equipped with BYD's latest plug-in hybrid technology, which has three to four times the order volume of the Qin L model without the technology.

Edited by Jeffrey