Zhitong Financial APP learned that China Banking International released a research report reiterating the "buy" rating of BYD Holdings (01211) with a target price of HK $282, believing that a pullback in the share price provides a good buying opportunity.
According to the report, the spin-off and listing of BYD's semiconductor business progressed in an orderly manner and became a catalyst for short-term share price gains. The shift in monetary policy to expectations triggered a correction in the stock price in the near future, but the bank is still optimistic about the company's medium-and long-term upward momentum, based on 1) BYD's leading position of new energy vehicles is expected to be consolidated with the release of DM-i series capacity; 2) external battery supply is expected to land this year; and 3) under the background of lack of core, the listing valuation of BYD Semiconductor is expected to exceed expectations.
China Bank International said BYD released sales figures for April. In April, total sales reached 45234 vehicles, an increase of 42% year-on-year / 40.4% month-on-month. In terms of new energy models, passenger vehicles sold 25662, an increase of 97.48 percent over the same period last year, including 16114 pure electric models, 8920 plug-in hybrids and 628 new energy commercial vehicles. Han shipped 8177 vehicles in April, still in the lead compared with other Chinese electric car manufacturers.
The bank said the DM-i series is expected to become a popular style. Take Tang DM-i as an example, it uses Snapcloud-plug special 1.5L turbocharged high efficiency engine, EHS electric mixing system and special power blade battery. The thermal efficiency of the engine reaches 43%, while the fuel consumption is only 5.3L / 100km, and the comprehensive range reaches 1050km. The bank believes that DM-i has been greatly improved in terms of price and economy of use. According to the current order-delivery cycle, the bank believes that the BYD DM-i series has been recognized by consumers and is expected to become a popular style with the release of blade battery capacity.
The report mentioned that the listing of BYD Semiconductor growth Enterprise Market has been carried out in an orderly manner. On the evening of May 11, BYD released a pre-plan to spin off its semiconductor business to be listed on the growth Enterprise Market (gem). BYD directly owns 72.30% of BYD Semiconductor and is the controlling shareholder of BYD Semiconductor. BYD Semiconductor's main business is the R & D, production and sales of power semiconductors, intelligent control IC, intelligent sensors and optoelectronic semiconductors, the main products include IGBT, SiCMOSFET, MCU, battery protection IC, AC-DCIC, CMOS image sensors, embedded fingerprint identification, electromagnetic and pressure sensors, LED light sources, LED lighting, LED display and so on. The bank believes that BYD Semiconductor is expected to exceed previous market expectations in terms of fundamentals and valuation in the context of the reverse globalization of semiconductors and the lack of cores in automotive semiconductors.
In terms of new energy vehicle sales, 1) the release of blade battery capacity; and 2) the gradual expansion of new models such as DM-i series (Qin PLUSDM-i, Tang DM-i, Song PlusDM-i) will help to promote the rapid growth of new energy sales. Looking ahead, the bank expects BYD's car sales to improve month-on-month and lead to a quarter-on-quarter improvement in earnings.