Title: BYD’s Explosive Performance Shakes the Market, Buffett Cuts Holdings
Subtitle: Photovoltaic Industry Also Experiences Significant Growth
BYD, the Chinese electric vehicle giant, has announced a remarkable increase in its net profit for the first half of the year, causing a stir in the market. The company expects its net profit to be between 10.5 billion and 11.7 billion yuan, marking a year-on-year increase of approximately 2 times. With its market value surpassing 740 billion yuan, BYD continues to strengthen its leadership in the new energy vehicle industry.
The booming performance of BYD can be attributed to the rapid growth of the new energy vehicle industry. Despite intensified competition in the auto industry, the company maintained profitability through its strong brand power, expanding scale advantages, and effective cost control measures. Additionally, the mobile phone parts and assembly business also contributed to the improved profitability.
BYD’s sales have been robust, with the company selling a total of 253,000 new energy vehicles in June alone. Furthermore, BYD has also made significant progress in global expansion, including plans for a large-scale production base in Brazil. Moreover, it has reported an investment plan worth $1 billion in India to produce electric vehicles and batteries.
While the market responded positively to BYD’s exceptional performance, renowned investor Warren Buffett has been reducing his holdings in BYD throughout the year. Despite this, BYD’s shares have risen by 37% this year, demonstrating its resilience.
Apart from BYD, the photovoltaic industry has also witnessed significant growth. JinkoSolar, Oujing Technology, Yijing Optoelectronics, Quartz, and JA Solar are among the companies that reported substantial increases in net profit for the first half of the year. JinkoSolar, for instance, expects its net profit to rise by 304% to 349% year-on-year.
The strong performance of photovoltaic concept stocks can be attributed to the global market demand for photovoltaic modules and the increasing proportion of advanced products. These companies have responded well to changes in supply chain prices, exchange rate markets, and international trade policies.
As the second half of the year begins, BYD’s growth momentum remains strong, especially with the launch of high-end models like the Denza N7. Additionally, the company’s globalization process is accelerating, with plans for a large-scale production base in Brazil and potential investments in India’s booming electric vehicle market.
Overall, while some companies are experiencing explosive growth, others are facing significant declines in performance. The volatility in the A-share market keeps investors both delighted and concerned about the future prospects of these companies.