Home » Buffett is down again! Why was BYD cashed out when its sales topped the list again in October?There are private equity bigwigs who are new to the trend

Buffett is down again! Why was BYD cashed out when its sales topped the list again in October?There are private equity bigwigs who are new to the trend

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Buffett is down again! Why was BYD cashed out when its sales topped the list again in October?There are private equity bigwigs who are new to the trend

Guided readingBYD’s H shares were reduced by Buffett again! Why was BYD cashed out when its sales topped the list again in October? There are private equity bigwigs who are new to the trend.

BYD’s H shares were reduced by Buffett again!

According to the latest disclosure document of the Hong Kong Stock Exchange, Berkshire Hathaway has sold 5.782 million BYD H shares on November 8 at an average selling price of HK$196.99 per share, cashing out about HK$1.14 billion, with a shareholding ratio of 17.15%. fell to 16.62%. Berkshire Hathaway began to reduce its holdings of BYD H shares for the first time on August 24 this year, and has reduced its holdings of about 43 million shares.

On November 11, BYD A and H shares rose sharply at the same time. Among them, H shares BYD shares rose 8.65% to close at HK$193.4 per share, A shares rose 3.28% to close at 268.6 yuan per share, and BYD A and H shares totaled The total market value is 682.1 billion yuan. Previously, BYD released October production and sales data, with 218,000 car sales in October, a record high.

In terms of A shares, BYD’s third quarterly report shows that Gaoyi Xiaofeng No. 2, managed by Deng Xiaofeng, chief investment officer of Gaoyi Assets, sent a letter to the fund to enter the top ten shareholders of BYD’s tradable shares in the third quarter, holding about 7.54 million shares and holding shares at the end of the period. The market value is 1.9 billion yuan. Deng Xiaofeng said in August this year that in 2022, it is obvious that the development of China’s new energy vehicle industry is unstoppable and has entered the “fast lane”.

Buffett cuts BYD holdings again

On November 11, according to the disclosure document of the Hong Kong Stock Exchange, Berkshire Hathaway had sold 5.782 million BYD H shares on November 8, with an average selling price of HK$196.99 per share, cashing out about HK$1.14 billion and holding shares. The proportion dropped from 17.15% to 16.62%.

Since August this year, Berkshire Hathaway has reduced its holdings of BYD many times. On August 30, the website of the Hong Kong Stock Exchange showed that Berkshire Hathaway sold 1.33 million BYD H shares on August 24 at an average price of HK$277.1, cashing out HK$369 million, accounting for the issued voting rights. The proportion dropped to 19.92%.

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On September 2, the website of the Hong Kong Stock Exchange showed that Berkshire Hathaway reduced its holdings of 1.716 million BYD H shares on September 1, with an average price of HK$262.72, cashing out HK$450 million, and its shareholding ratio dropped to 18.87%.

On November 4, the website of the Hong Kong Stock Exchange showed that Berkshire Hathaway sold 3.297 million BYD H shares on November 1 at an average transaction price of HK$169.87 per share, cashing out HK$560 million, with a shareholding ratio of HK$560 million. dropped to 17.92%.

It is worth mentioning that, according to the regulations of the Hong Kong Stock Exchange, the increase or decrease of the shares held by major shareholders only needs to be disclosed when it exceeds a certain integer percentage.

In terms of the number of shares held, in addition to the disclosed information, Berkshire Hathaway has also reduced its holdings many times. According to BYD’s 2022 semi-annual report, as of the end of June this year, Berkshire Hathaway held 225 million shares. Based on this calculation, Berkshire Hathaway has reduced its holdings of BYD H shares by about 4,300 in recent months. million shares.

In terms of stock price, on November 11, BYD shares rose 8.65% to close at HK$193.4 per share. BYD A shares rose 3.28% to close at 268.6 yuan per share. The combined total market value of BYD A and H shares was 682.1 billion yuan.

Sales hit a new high in October

A few days ago, BYD released the production and sales data for October. In October, car sales reached 218,000 units, a year-on-year increase of 142% and a month-on-month increase of 8%. The monthly sales volume hit a new record high, and it has been on the domestic new energy vehicle sales list for three consecutive months. At the top of the list, in the first ten months of 2022, BYD’s cumulative sales have reached 1.403 million units, a year-on-year increase of 159%.

According to the analysis of West China Securities, BYD relies on the two advanced technology platforms of DM-i and E3.0, and the volume and price of technology-driven products are rising, and the high-end path is clear. At the same time, the company’s vertically integrated supply chain advantage maximizes resistance to industry force majeure.

Guosen Securities Research Report stated that from the perspective of the main line logic, BYD has a deep layout of the upstream industrial chain, and the three-electric technology (battery, motor, and electronic control) is strong; the ability to grasp the downstream terminal market has been significantly improved. , launched a series of explosive new cars. The track has good growth potential + strong industrial chain strength + high market share, and high-quality giants in high-quality industries are gradually becoming clear. From the perspective of branch line logic, BYD’s blade battery has greatly improved the energy density of lithium iron phosphate batteries in a structurally innovative way, and has proved the safety of the battery pack through acupuncture tests. Company executives have expressed in media interviews that they will supply Tesla for many models such as the Celis SF5, Changan CS55, Dongfeng Lantu FREE, Ford Mustang Mach-E, and Lincoln Adventurer PHEV. In the future, the external supply customers of blade batteries are expected to be further expanded. With the rapid development of energy storage batteries, BYD will bring a larger business increment.

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In addition, BYD’s new high-end brand was officially unveiled recently. On November 8, BYD’s official WeChat account released a poster titled “Looking Up”, officially announcing the name of its high-end car brand.

BYD said that in the wave of global automobile transformation, Chinese automobiles are accelerating their rise. Looking up to automobiles, they will build brands and products with disruptive technologies and forward-looking designs, and are committed to bringing users unprecedented new experiences of extreme performance. At the same time, Yangwang Auto is also committed to becoming the representative and benchmark of China’s high-end auto brands.

BYD’s 2022 third quarterly report shows that the company’s main revenue in the first three quarters was 267.688 billion yuan, up 84.37% year-on-year; net profit was 9.311 billion yuan, up 281.13% year-on-year, of which the company’s main revenue in the third quarter was 117.081 billion yuan, up 115.59% year-on-year; The profit was 5.716 billion yuan, a year-on-year increase of 350.26%.

Private equity bigwigs new in the third quarter

Sales have been rising steadily, and performance has increased significantly year-on-year, but BYD’s share price has also fluctuated greatly under the recent turbulent market. Taking A shares as an example, BYD’s stock price once reached 358.75 yuan per share in June this year, and then began to adjust, and it has now adjusted back by more than 20%.

However, it is worth noting that the third quarterly report shows that Gaoyi Xiaofeng No. 2, managed by Deng Xiaofeng, the chief investment officer of Gaoyi Assets, sent a letter to the fund in the third quarter to enter the top ten tradable shareholders of BYD, holding about 7.54 million shares. The stock market value is 1.9 billion yuan.

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Deng Xiaofeng said in August this year that in 2022, it is obvious that the development of China’s new energy vehicle industry is unstoppable and has entered the “fast lane”; China has begun to realize a comprehensive and systematic replacement of traditional fuel vehicles. The development and changes in the field will be an important turning point for the new energy vehicle industry in 2022. At that time, he predicted that the industries expected to have significant profitable growth in the second half of 2022 were mainly concentrated in new energy-related fields, such as photovoltaics, wind power and electric vehicles.

In terms of the entire new energy vehicle, the production and sales continued to hit a record high. According to data from the China Automobile Association, in October, the production and sales of new energy vehicles reached 762,000 and 714,000 respectively, an increase of 87.6% and 81.7% year-on-year respectively, and the market share reached 28.5%.

In the third quarterly report, Shi Cheng, the fund manager of SDIC UBS Fund, gave an outlook on new energy vehicles: We believe that sales in 2023 will significantly exceed current market expectations. From the perspective of China and Europe, the constraints of chips and wiring harnesses have been eased, and the production of automobiles has increased. New energy vehicles, represented by Tesla and BYD, have the motivation to further cut prices to seize the market after the launch of new production capacity. At present, the unit profit of fuel vehicles is already low, and foreign asset dealers value profits, and there may be a move to stabilize prices and ensure profits in the future, so the replacement logic of new energy vehicles is smooth. We believe that China’s new energy vehicles are likely to have no obvious obstacles until the penetration rate reaches 80%. At present, the valuation of the entire electric vehicle industry chain is at a historically low level, and we are optimistic about the overall industry performance.

(Source: Securities Times Network)

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