BYD soars 41% on the first day to stimulate lithium battery hype

BYD successfully landed small and medium-sized boards yesterday. Although the previous day, BYD disclosed unfavorable news that its profit dropped by 83% in the first quarter, BYD's H shares fell sharply by 4.99% to close at 23.8 HKD/share (equivalent to RMB 19.77/share). , higher than the issue price of A shares of 18 yuan / share, but BYD's performance yesterday can be described as "steady rise" throughout the day. At 9:30 in the morning, BYD rose by 22%, then went all the way higher and closed up 41.39%. Not only did it break the “breaking” curse previously predicted by many brokers, but it also kept the image of Buffett’s concept stock well maintained.

It is worth mentioning that under the drive of steady gains by BYD, the intraday New Energy battery concept stocks also followed suit and became a beautiful landscape in the market. Analysts said that in the next 5-10 years, electric vehicles will gradually mature, will drive the explosive growth in demand for lithium battery-related materials, so the relevant stocks worth investors attention.

Traditional business vehicles are not optimistic about the data show that BYD is mainly engaged in secondary rechargeable battery business, mobile phone parts and assembly business, and automobile business including traditional fuel vehicles and new energy vehicles; at the same time, it uses its own technological advantages to actively develop new energy sources. Product related business.

As for the performance decline, BYD stated that “Compared with the same period of last year, the decline in the first quarter of 2011 was relatively large, which was mainly due to the decline in the auto business performance, as well as the increase in management fees and financial costs; compared with the fourth quarter of 2010 , The first quarter of 2011 saw recovering growth, which was mainly due to the impact of the rebound in auto business, slow sales of sales promotion discounts, changes in sales structure, and cost reductions that led to an increase in the gross profit of the automotive business. At the same time, advertising costs and transportation Miscellaneous fees are substantially reduced.".

According to statistics of Wind, 11 brokerage analysts, including Guotai Junan and Haitong Securities, forecasted the reasonable price range of BYD. Among them, the lower limit of the price range given by six brokers “falls below” the issue price of BYD. The lowest price range given the lowest price range is Industrial Securities, the price range is 13.97 yuan / share to 17.36 yuan / share, the highest is Debon Securities, pricing range of 28.25 yuan / share to 33.9 yuan / share.

Although relying on new energy vehicles to dominate the capital market, but the above analysts believe that this is only reflected in the enthusiasm of the capital market. In the current market situation, BYD is seen by investors as a manufacturer of traditional cars.

A brokerage analyst said that according to the traditional car industry, 10 times to 15 times the dynamic price-earnings ratio calculation, according to this year's estimated earnings of 0.8 yuan per share, BYD valuation range of 8 yuan / share to 12 yuan / share. If we calculate the price-to-earnings ratio of about 20 times in accordance with the comprehensive business, the valuation will be around RMB 16/share. In the first quarter of this year, the net profit fell by 80% year-on-year, and the valuation of stock prices should also be lowered.

The prospects for new energy batteries are better. Although BYD itself is “not very good”, it has stimulated the enthusiasm of the market to speculate on new energy vehicle concept stocks. Among them, Tibet Minerals and other upstream mineral companies are the most aggressive speculators. In addition to Tibet Mining, yesterday's Fluoride, Shanshangufen shares have performed well.

The latest research report of CITIC Securities believes that the lithium battery industry is undoubtedly the most important and the most promising segment in the development plan for new energy vehicles. The report believes that lithium batteries in the battery industry will develop rapidly in the future, and lithium batteries are expected to be further applied to hybrid vehicles.

Orient Securities new energy analyst Zou Hui said in an interview: “Although the domestic industrialization of lithium batteries will be a period of time, but the development of the core components of lithium batteries is very rapid, a greater degree of benefit policies. Lithium battery Key materials We are relatively optimistic about Fosugufen, Fluoride, Jiangsu Guotai, Shanshangufen, Foshan Lighting, Nandu Power, Dangsheng Technology; lithium battery and battery-related listed companies, we are relatively optimistic about Foshan Lighting, Nandu Power, universal Qian Chao, Cheng Fei integration, etc."

Analyst Zhou Xiaoming of Huatai United Securities believes that in the next 5-10 years, electric vehicles will gradually mature and will drive the explosive growth of demand for lithium battery-related materials. It is recommended that a stable investor, preferably an electrolyte; an active investor, be the preferred diaphragm. The focus is on Fosuguchi Co., Ltd., Neo-Choubang Co., Ltd., Jiangsu Guotai Co., Ltd. and Ascend Technology Co., Ltd., and they have long paid attention to Shanshan shares and Fluoride.