BYD Company (1211.HK) soars 8.9% to HK$36.25, adding to its 9.2% jump Wednesday, which came on news its 50:50 JV with Daimler (DAI.XE) gets a business license, bringing the companies' plans to create an electric vehicle for the Chinese market a step closer to fruition. Still, Credit Suisse says it "would advocate caution" given that the JV is unlikely to produce any tangible contributions until 2013; in addition, BYD's excitement over this JV also raises questions on the commercial viability of its existing EV model (e6). The house adds that it sees further downside risk in BYD's share price, as over the next 2 weeks, it expects BYD to announce disappointing February auto sales, below-consensus FY10 earnings, and a potential downward revision of its auto sales target. CS keeps BYD at Underperform with a HK$29.00 target price.
Weekend Summary: Beijing May Abandon Green Cars
22 August 2011 10:19 AM EDT
Source (English): Forbes
• The National Development and Reform Commission and the Ministry of Industry and Information Technology of China have been arguing over the prospects of green technology for electric cars in China.
• Last month, the NDRC’s Li Gang called the electric car ventures in China "hopeless" and "garbage technology". The MIIT argued that Beijing was not built in a day.
• Premier Wen Jiabao also voiced concerns that problems involving the technical path, technologies, investment and policy support make the future of electric and hybrid cars in China uncertain.
• It appears that China's government, which has devoted more towards electric vehicles than those of any other country, is now rethinking its commitment towards the project and has yet to release details.
Investors Believe Buffett Could Buy BYD
24 August 2011 09:55 AM EDT
Source (English): Fox News
• Michael Yoshikami, founder and chief executive of wealth manager YCMNET Advisors, believes Warren Buffett may buy BYD, as its shares continue to plummet.
• Buffett bought 10% of BYD in 2008 with an endorsement from Charlie Munger and David Sokol, sparking a tenfold appreciation in stock price within a year.
• BYD's sales are falling as its international plans are delayed and the markets continue to question the company's technology.
• Thomson Reuters data shows that full ownership of BYD is well within Buffet's reach and is in line with the size of deal he has been talking about doing.
BYD Chairman: BYD to Experience Adjustments in 2011 and 2012, Investment Will Continue
18 October 2011 10:23 PM EDT
Source (Chinese): Tencent Finance
• Recently, Wang Chuanfu, Chairman and President of BYD, said that BYD will continue to undergo adjustments in 2012, and that the company is expected to see a second take-off in 2013, but growth speed may not be as fast as the first one.
• Wang disclosed that the first segment to be restructured is BYD's sales network. The company has already reduced its number of dealers from 1,000 to around 830. The company will maintain its investment at a stable level to cultivate competitive products.
• Shenzhen city plans to replace 10,000 buses and 13,000 cabs with electric vehicles over the next five years, and BYD is trying to capture this opportunity, Wang added.
• BYD will deliver 2,000 electric buses in 2012. For 2012 and 2013, the company expects to see billions in sales revenue from its new-energy vehicles.
China Expected to Release Industry Plan for New Energy Vehicles By Year End, BYD Stock Soars
01 November 2011 09:35 PM EDT
Source (Chinese): caijing
• The recent increase in BYD's share price is unrelated to its 3Q 2011 results, but may be due to China's soon-to-be-released Industry Plan for New Energy Vehicles and the launch of the e6, said Cao He, chief auto industry analyst at Minzu Securities.
• It was recently reported that the Industry Plan for New Energy Vehicles has been submitted to relevant authorities for review and could be released by the end of this year.
China May Loosen Controls on Development of New-Energy Vehicles; Could Create Competition for BYD
Jan 12, 2012 02:12 PM EST
Source (Chinese): Newenergy
China reportedly plans to relax its tight controls on the development of new-energy vehicles, allowing a wider array of technologies to compete in a more open market.
Beijing has established a narrow path for the development of China's new-energy vehicle industry, focusing solely on electric cars. The new shift could see hybrid, electric and fuel-cell vehicles all enter the market.
The shift could greatly affect the performance of BYD, which has exclusively focused on electric cars.
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Three Models of BYD Electric Vehicles Will Be Exempt From Usage Tax
Jan 16, 2012 02:10 AM EST
Source (English): Bloomberg BusinessWeek
According to a report by the People’s Daily, the Chinese government will exempt three of BYD's electric car models from vehicle-usage tax charges.
As a result, shares of BYD increased by up to 6.7% to reach HKD 22.20, while the shares were trading at HKD 21.50 as of 1:45 PM today in Hong Kong.
CAAM: BYD's December Unit Sales Up 1.4% YoY
Jan 17, 2012 01:14 AM EST
Source (English): Reuters
According to the China Association of Automobile Manufacturers (CAAM), BYD Company Limited sold a total of 52,009 vehicles in December, 2011, representing an increase of 1.4% YoY.
For FY 2011, BYD sold a total of 448,484 vehicles, representing a decrease of 13.7% YoY.
BYD S6 the Best-Selling Manufacturer-Owned-Brand SUV For December
Jan 26, 2012 10:02 AM EST
Source (Chinese): PC Auto
In December 2011, BYD's S6 SUV model sold 15,012 units in China, the highest sales of a SUV model sporting a brand fully owned by an automobile manufacturer based in China.
December was the fourth month that the model has achieved this distinction.
BYD to Launch New Generation F3 in June 2012
Feb 02, 2012 04:47 AM EST
Source (Chinese): iFeng
BYD will launch its new generation F3 in June 2012. The new model is named F3 Surui.
The F3 Surui is slightly larger than the current F3 and will come with new engine technology, though exact specifications have not been disclosed. The price of the F3 Surui is expected to be higher than the original.
First Car by BYD and Daimler Could Soon Launch
Feb 03, 2012 02:00 PM EST
Source (English): China Car Times
Images of the first vehicle model produced jointly by BYD and Daimler have been spotted online. The electric model is named GOLF, which stands for Green, Oxygen, Light and Friendship. The model was produced with an investment of CNY 6 billion.
The model is expected to be shown at the Beijing Auto Show.
Analyst: BYD’s Sales of S6 Model Set New Record in January 2012
Feb 08, 2012 04:05 AM EST
Source (English): Bloomberg News
BNP Paribas SA analyst Jack Yeung noted in a report that the sales of BYD’s new S6 model in January, 2012 could be as high as 16,000 units, up from its previous record of 15,000 units sold in December, 2011.