BYD is expected to end four consecutive declines, and stocks is a hidden price concern

Financial Associated Press, July 14 (Reporter Cheng Mengqi) After Buffett's reduction in holdings and rumors of lithium iron manganese phosphate battery research and development, BYD 's Hong Kong stock ended a four-day losing streak and rose 5.52% today to close at HK$283. At the same time, BYD's A shares It rose 4.23 percent to 323 yuan.

On July 14, the net inflow of north water to BYD was 367 million Hong Kong dollars. Among them, the net inflow of Shanghai Stock Connect was 160 million Hong Kong dollars, the net inflow of Shenzhen Stock Connect was 207 million Hong Kong dollars, and the net inflow of Shanghai, Shenzhen and south was 207 million Hong Kong dollars. The most Hong Kong stocks are BYD.

"Please close your eyes when it's dark, and major shareholders, please transfer positions"

Just on July 12, the Hong Kong Stock Exchange disclosed that up to 225 million BYD shares were transferred from physical stocks to Citibank. This news quickly detonated the Hong Kong stock market. Investors and the media have speculated that it may be that the major shareholder Buffett intends to reduce his holdings. Buffett has held BYD since 2008 and has been holding 225 million shares, which is consistent with the amount of this transfer. Affected by this news, BYD's H shares and A shares fell by 11% and 6% respectively on July 12, and H shares fell by 0.74% on the 13th.

In response to the rumors of the reduction of holdings, BYD once replied that according to the relevant rules of the Hong Kong Stock Exchange and the Securities Regulatory Commission, major shareholders need to declare their rights and interests to reduce their holdings. Check the Hong Kong Stock Exchange's rights disclosure platform. No information on the reduction of holdings is displayed, and the declaration of shareholders' rights and interests shall prevail. . The company is currently operating normally.

According to the disclosure rules of the Hong Kong Stock Exchange, major shareholders of listed companies holding more than 5% of the shares must declare within 3 trading days when the increase or decrease of their shareholding interests reaches a certain standard. As of 10:00 p.m. on July 14, the Hong Kong Stock Exchange had not disclosed any changes in the shareholdings of BYD's major shareholders. This also shows that three trading days have passed after the transfer, and no major shareholders of BYD have reduced their holdings for the time being.

"Please open your eyes at dawn, no major shareholders reduce their holdings"

Three trading days later, the cut-off time for the disclosure of shareholding reduction required by the Hong Kong Stock Exchange has passed, confirming that the 225 million share transfer is not for immediate reduction of holdings.

Market participants believe that the rollover should be deployed in advance, but which deployments will be made, it will be confirmed by time. From the perspective of trading rules, major shareholders hold physical stocks that cannot be traded in the market, while retail investors generally hold electronic stocks, which can be traded at any time. Therefore, if the major shareholders holding physical stocks need to allot or reduce their holdings, they must transfer the physical stocks. Stocks are deposited in the name of securities companies and converted into electronic stocks, but this requires time and money costs, so it must not be done casually.

"At present, because there is no announcement on the reduction of BYD's major shareholders on the Hong Kong Stock Exchange, there are many possibilities for the transfer of positions, or it may be for allotment, or lending, or it may be entrusted to institutional investors to slowly lighten their positions." Analysts said.

In this regard, Buffett did not come forward to clarify.

Northeast Securities has previously stated that based on its communication with Buffett’s Berkshire Hathaway Fund, Buffett currently has no plans to reduce or reduce holdings. Morgan Stanley's research report also pointed out that, according to the bank's investigation of BYD, its main shareholder structure has not changed significantly at present. Daiwa Securities believes that if Buffett does not come forward to clarify, BYD may face further selling pressure in the short term.

Daiwa Securities Research Report said that in view of the decline in BYD's share price on the 12th and 13th, Buffett is expected to clarify later, otherwise BYD may face further selling pressure in the short term. While waiting for further clarification from Buffett, it does not rule out that he is cautious about the overall economic outlook for the next few years, and that the growth of new energy vehicles or automobiles may slow down.

BYD issued a positive profit, and its net profit increased by up to 206%

Although Buffett did not wait for a clarification in person, BYD issued an announcement on the Hong Kong Stock Exchange today, saying that for the six months ended June 30, 2022, the net profit attributable to shareholders of the listed company was 2.8 billion to 3.6 billion yuan, an annual It increased by 138.59% to 206.76%.

BYD also said that despite the macroeconomic downturn, the spread of the epidemic, the shortage of chips, and the continued rise in raw material prices, the new energy vehicle industry has outperformed. BYD's new energy vehicle sales have been growing strongly, hitting record highs repeatedly, leading the market share and achieving rapid year-on-year growth, driving a substantial improvement in profitability, and to a certain extent, hedging the profit pressure caused by upstream raw material prices. In terms of mobile phone components and assembly business, the demand in the consumer electronics industry was weak, but profitability recovered somewhat thanks to improved cost control and product structure adjustment.

Before BYD released its performance forecast, rumors about BYD's research and development of lithium manganese iron phosphate batteries once again set off the storm.

From July 12, it is rumored that BYD's Fudi battery has started to purchase lithium iron manganese phosphate materials in small batches at the beginning of this year, and is currently in the internal research and development stage. BYD responded that there will be research on various materials for batteries. Another industry source said that many battery companies are currently testing lithium iron manganese phosphate batteries, but the time of mass shipment is uncertain.

Morgan Stanley believes that BYD's fundamentals are still strong. In addition to better than the performance of the annual auto sales guidance, the market also hopes that BYD will have a significant increase in gross profit margins and a breakthrough in the electric vehicle battery project. The bank believes that market expectations for BYD are high and market sentiment is fragile, so any speculation or uncertainty may bring more volatility to the stock in the short term.

Therefore, Morgan Stanley maintains the rating of BYD Hong Kong stocks "in line with the market" with a target price of 300 Hong Kong dollars.

Financial Associated Press, July 14 (Reporter Cheng Mengqi) After Buffett's reduction in holdings and rumors of lithium iron manganese phosphate battery research and development, BYD 's Hong Kong stock ended a four-day losing streak and rose 5.52% today to close at HK$283. At the same time, BYD's A shares It rose 4.23 percent to 323 yuan.

On July 14, the net inflow of north water to BYD was 367 million Hong Kong dollars. Among them, the net inflow of Shanghai Stock Connect was 160 million Hong Kong dollars, the net inflow of Shenzhen Stock Connect was 207 million Hong Kong dollars, and the net inflow of Shanghai, Shenzhen and south was 207 million Hong Kong dollars. The most Hong Kong stocks are BYD.

"Please close your eyes when it's dark, and major shareholders, please transfer positions"

Just on July 12, the Hong Kong Stock Exchange disclosed that up to 225 million BYD shares were transferred from physical stocks to Citibank. This news quickly detonated the Hong Kong stock market. Investors and the media have speculated that it may be that the major shareholder Buffett intends to reduce his holdings. Buffett has held BYD since 2008 and has been holding 225 million shares, which is consistent with the amount of this transfer. Affected by this news, BYD's H shares and A shares fell by 11% and 6% respectively on July 12, and H shares fell by 0.74% on the 13th.

In response to the rumors of the reduction of holdings, BYD once replied that according to the relevant rules of the Hong Kong Stock Exchange and the Securities Regulatory Commission, major shareholders need to declare their rights and interests to reduce their holdings. Check the Hong Kong Stock Exchange's rights disclosure platform. No information on the reduction of holdings is displayed, and the declaration of shareholders' rights and interests shall prevail. . The company is currently operating normally.

According to the disclosure rules of the Hong Kong Stock Exchange, major shareholders of listed companies holding more than 5% of the shares must declare within 3 trading days when the increase or decrease of their shareholding interests reaches a certain standard. As of 10:00 p.m. on July 14, the Hong Kong Stock Exchange had not disclosed any changes in the shareholdings of BYD's major shareholders. This also shows that three trading days have passed after the transfer, and no major shareholders of BYD have reduced their holdings for the time being.

"Please open your eyes at dawn, no major shareholders reduce their holdings"

Three trading days later, the cut-off time for the disclosure of shareholding reduction required by the Hong Kong Stock Exchange has passed, confirming that the 225 million share transfer is not for immediate reduction of holdings.

Market participants believe that the rollover should be deployed in advance, but which deployments will be made, it will be confirmed by time. From the perspective of trading rules, major shareholders hold physical stocks that cannot be traded in the market, while retail investors generally hold electronic stocks, which can be traded at any time. Therefore, if the major shareholders holding physical stocks need to allot or reduce their holdings, they must transfer the physical stocks. Stocks are deposited in the name of securities companies and converted into electronic stocks, but this requires time and money costs, so it must not be done casually.

"At present, because there is no announcement on the reduction of BYD's major shareholders on the Hong Kong Stock Exchange, there are many possibilities for the transfer of positions, or it may be for allotment, or lending, or it may be entrusted to institutional investors to slowly lighten their positions." Analysts said.

In this regard, Buffett did not come forward to clarify.

Northeast Securities has previously stated that based on its communication with Buffett’s Berkshire Hathaway Fund, Buffett currently has no plans to reduce or reduce holdings. Morgan Stanley's research report also pointed out that, according to the bank's investigation of BYD, its main shareholder structure has not changed significantly at present. Daiwa Securities believes that if Buffett does not come forward to clarify, BYD may face further selling pressure in the short term.

Daiwa Securities Research Report said that in view of the decline in BYD's share price on the 12th and 13th, Buffett is expected to clarify later, otherwise BYD may face further selling pressure in the short term. While waiting for further clarification from Buffett, it does not rule out that he is cautious about the overall economic outlook for the next few years, and that the growth of new energy vehicles or automobiles may slow down.

BYD issued a positive profit, and its net profit increased by up to 206%

Although Buffett did not wait for a clarification in person, BYD issued an announcement on the Hong Kong Stock Exchange today, saying that for the six months ended June 30, 2022, the net profit attributable to shareholders of the listed company was 2.8 billion to 3.6 billion yuan, an annual It increased by 138.59% to 206.76%.

BYD also said that despite the macroeconomic downturn, the spread of the epidemic, the shortage of chips, and the continued rise in raw material prices, the new energy vehicle industry has outperformed. BYD's new energy vehicle sales have been growing strongly, hitting record highs repeatedly, leading the market share and achieving rapid year-on-year growth, driving a substantial improvement in profitability, and to a certain extent, hedging the profit pressure caused by upstream raw material prices. In terms of mobile phone components and assembly business, the demand in the consumer electronics industry was weak, but profitability recovered somewhat thanks to improved cost control and product structure adjustment.

Before BYD released its performance forecast, rumors about BYD's research and development of lithium manganese iron phosphate batteries once again set off the storm.

From July 12, it is rumored that BYD's Fudi battery has started to purchase lithium iron manganese phosphate materials in small batches at the beginning of this year, and is currently in the internal research and development stage. BYD responded that there will be research on various materials for batteries. Another industry source said that many battery companies are currently testing lithium iron manganese phosphate batteries, but the time of mass shipment is uncertain.

Morgan Stanley believes that BYD's fundamentals are still strong. In addition to better than the performance of the annual auto sales guidance, the market also hopes that BYD will have a significant increase in gross profit margins and a breakthrough in the electric vehicle battery project. The bank believes that market expectations for BYD are high and market sentiment is fragile, so any speculation or uncertainty may bring more volatility to the stock in the short term.

Therefore, Morgan Stanley maintains the rating of BYD Hong Kong stocks "in line with the market" with a target price of 300 Hong Kong dollars.