Latest news with #BYDCompanyLimited
Time of India
a day ago
- Automotive
- Time of India
BYD unleashes an EV industry reckoning that alarms Beijing
HighlightsThe ongoing price war in China's electric vehicle industry, led by market leader BYD Company Limited, is causing significant declines in share prices and prompting governmental intervention to curb aggressive discounting and prevent further market instability. Despite attempts by Chinese authorities to manage the situation, analysts predict that overcapacity and weak demand will force many automakers, especially smaller ones, to consolidate or exit the market, as evidenced by the exit of 16 new energy vehicle brands in 2024. Concerns have emerged regarding the long-term sustainability of Chinese automakers, as relentless discounting erodes profit margins and brand value, while also risking the quality and safety of vehicles produced amid financial pressures. The price war engulfing China's electric vehicle industry has already sent share prices tumbling and prompted an unusual level of intervention from Beijing. The shakeout may just be getting started. For all the Chinese government's efforts to prevent price cuts by market leader BYD Co. from turning into a vicious spiral, analysts say a combination of weaker demand and extreme overcapacity will slice into profits at the strongest brands and force feebler competitors to fold. Even after the number of EV makers started shrinking for the first time last year, the industry is still using less than half its production capacity. Chinese authorities are trying to minimize the fallout, chiding the sector for 'rat race competition' and summoning heads of major brands to Beijing last week. Yet previous attempts to intervene have had little success. For the short term at least, investors are betting few automakers will escape unscathed: BYD, arguably the biggest winner from industry consolidation, has lost $21.5 billion in market value since its shares peaked in late May. 'What you're seeing in China is disturbing, because there's a lack of demand and extreme price cutting,' said John Murphy, a senior automotive analyst at Bank of America Corp. Eventually there will be 'massive consolidation' to soak up the excess capacity, Murphy said. For automakers, relentless discounting erodes profit margins, undermines brand value and forces even well-capitalized companies into unsustainable financial positions. Low-priced and low-quality products can seriously damage the international reputation of 'Made-in-China' cars, noted the People's Daily, an outlet controlled by the Communist Party. And that knock would come just as models from BYD to Geely, Zeekr and Xpeng start to collect accolades on the world stage. For consumers, price drops may seem beneficial but they mask deeper risks. Unpredictable pricing discourages long-term trust — already people are complaining on China's social media, wondering why they should buy a car now when it may be cheaper next week — while there's a chance automakers, as they cut costs to stay afloat, may reduce investment in quality, safety and after-sales service. Auto CEOs were told last week they must 'self-regulate' and shouldn't sell cars below cost or offer unreasonable price cuts, according to people familiar with the matter. The issue of zero-mileage cars also came up — where vehicles with no distance on their odometers are sold by dealers into the second-hand market, seen widely as a way for automakers to artificially inflate sales and clear inventory. Chinese automakers have been discounting a lot more aggressively than their foreign counterparts. BofA's Murphy said US automakers should just get out. 'Tesla probably needs to be there to compete with those companies and understand what's going on, but there's a lot of risk there for them.' Others leave no room for doubt that BYD, China's No. 1 selling car brand, is leading the way on price cuts. 'It's obvious to everyone that the biggest player is doing this,' Jochen Siebert , managing director at auto consultancy JSC Automotive, said. 'They want a monopoly where everybody else gives up.' BYD's aggressive tactics are raising concerns over the potential dumping of cars, dealership management issues and 'squeezing out suppliers,' he said. The pricing turmoil is also unfolding against a backdrop of significant overcapacity. The average production utilization rate in China's automotive industry was mere 49.5% in 2024, data compiled by Shanghai-based Gasgoo Automotive Research Institute show. An April report by AlixPartners meanwhile highlights the intense competition that's starting to emerge among new energy vehicle makers, or companies that produce pure battery cars and plug-in hybrids. In 2024, the market saw its first ever consolidation among NEV-dedicated brands, with 16 exiting and 13 launching. 'The Chinese automotive market, despite its substantial scale, is growing at a slower speed. Automakers have to put top priority now on grabbing more market share,' said Ron Zheng, a partner at global consultancy Roland Berger GmbH. Jiyue Auto shows how quickly things can change. A little over a year after launching its first car, the automaker jointly backed by big names Zhejiang Geely Holding Group Co. and technology giant Baidu Inc., began to scale down production and seek fresh funds. It's a dilemma for all carmakers, but especially smaller ones. 'If you don't follow suit once a leading company makes a price move, you might lose the chance to stay at the table,' AlixPartners consultant Zhang Yichao said. He added that China's low capacity utilization rate, which is 'fundamentally fueling' the competition, is now even under more pressure from export uncertainties. While the push to find an outlet for excess production is thrusting more Chinese brands to export, international markets can only offer some relief. 'The US market is completely closed and Japan and Korea may close very soon if they see an invasion of Chinese carmakers,' Siebert said. 'Russia, which was the biggest export market last year, is now becoming very difficult. I also don't see Southeast Asia as an opportunity anymore.' The pressure of cost cutting has also led analysts to express concern over supply chain finance risks. A price cut demand by BYD to one of its suppliers late last year attracted scrutiny around how the car giant may be using supply chain financing to mask its ballooning debt. A report by accounting consultancy GMT Research put BYD's true net debt at closer to 323 billion yuan ($45 billion), compared with the 27.7 billion yuan officially on its books as of the end of June 2024. The pain is also bleeding into China's dealdership network. Dealership groups in two provinces have gone out of business since April, both of them ones that were selling BYD cars. Beijing's meeting with automakers last week wasn't the first attempt at a ceasefire. Two years ago, in mid 2023, 16 major automakers, including Tesla Inc., BYD and Geely signed a pact, witnessed by the China Association of Automobile Manufacturers, to avoid 'abnormal pricing.' Within days though, CAAM deleted one of the four commitments, saying that a reference to pricing in the pledge was inappropriate and in breach of a principle enshrined in the nation's antitrust laws. The discounting continued unabated.
Time of India
4 days ago
- Automotive
- Time of India
Tesla is being eaten alive by Chinese rivals it inspired
HighlightsTesla's shipments from its Shanghai factory fell by 15 percent in May compared to the previous year, marking eight consecutive months of declining output from its largest electric vehicle factory. Tesla's share of China's battery electric vehicle market has decreased by more than half over the past four years, now accounting for only about 10 percent of sales, and dropping to 5.8 percent when including other new energy vehicles like plug-in hybrids. Despite Tesla's high reputation in China as a catalyst for the electric vehicle industry, domestic competitors like BYD Company Limited are now providing more appealing options at lower prices, leading to a rapid erosion of Tesla's market position. The biggest story swirling around Tesla Inc. right now concerns Chief Executive Elon Musk 's sudden, if unsurprising, break with a leader who is as calm and unassuming as he is, President Donald Trump . The important story concerns what is happening far from these shores: China. Shipments from Tesla's Shanghai factory fell by 15per cent in May compared with a year before, according to preliminary data from China's Passenger Car Association. That marks eight straight months of declining output from Tesla's single biggest electric vehicle factory, accounting for around 40per cent of its global capacity. These figures don't break out which of those EVs get sold in China or get exported from there, but this trend is not Tesla's friend. Through April, its share of China's battery EV market had fallen by more than half over the past four years, according to data compiled by New AutoMotive, a UK-based research firm. The numbers also suggest deteriorating economics. On a simple, calendar-day basis, they imply Shanghai factory utilization of 76per cent in May. That isn't terrible, but it's down significantly from last May. So far this year, excluding the month of February when Tesla was retooling for the refreshed Model Y, implied utilization is running 10 points lower than the same period in 2024. Speaking of that updated Model Y, it isn't a good sign that Tesla has already offered incentives like zero-percent financing in China. Taken together, lower capacity utilization, implying higher fixed costs per vehicle, and higher discounts, meaning less net revenue, point to a continuing problem with what was all too apparent in Tesla's first quarter results: Crushed profit margins in its main business. Unlike Tesla's weaker EV sales in other important markets such as California and Europe, the slide in China has nothing to do with Musk's politics. Tesla's reputation within China remains high, viewed as an essential catalyst in revolutionizing the quality and scale of the country's auto sector. Except that 'catalyst' isn't quite the right word, because the beauty of catalysts is that they spark transformations but don't get used up in the process. In this case, it would be more accurate to call Tesla a reactant, because the domestic Chinese EV industry spurred on by its example is now eating it alive. While Tesla's share of China's battery EV sales is down to about 10per cent so far this year, that drops to 5.8per cent when you include other so-called 'new energy vehicles' such as plug-in hybrids, according to figures compiled by Goldman Sachs Group Inc. Competitors including BYD Co. Ltd., which holds about 27per cent of China's NEV market, are now delivering the sort of excitement that Tesla used to in terms of looks, range and driver assistance features — and at lower prices. Xiaomi Corp., the smartphone maker, is in the process of launching the YU7, a high-tech, fast-charging electric SUV that resembles a Porsche or Ferrari but is perhaps best pictured as a Model Y-seeking missile. In an alternate dimension, China would serve as a hothouse laboratory for Tesla to hone world beating, profitable EVs that might even be exported to its home market. In the dimension we've got, Musk has seemingly lost his ambition to develop brand new, affordable EVs that can compete across the world. Tesla's last genuinely new model, the Cybertruck, is certainly big but only about as 'beautiful' as the Trump tax bill that Musk now openly derides as an 'abomination.' While Tesla sits apart from the legacy automakers in the US, Germany and Japan in many respects — certainly in terms of valuation — it has, like them, seen its position in China eroded rapidly. And regardless of Musk's latest posts on X, he worked hard to secure the election of a president and Congressional majority intent on crushing EV sales in the US. With the end of the second quarter approaching, and the sales figures emanating from China and Europe portending another set of weak earnings, it is perhaps little wonder that this narrative is crowded out by all manner of other things. Musk, who ditched Tesla's public relations team and routinely denounces the media as 'propaganda' has nonetheless plunged into a media blitz of late, and has now whipped up a new political intrigue. Is the break with Trump real? My litmus test: watch out if @elonmusk posts a picture of a taco. Plus, of course, we have the imminent launch of Tesla's self-driving cars in Austin. Whatever they actually turn out to be, with the always dubious narrative of Musk's White House job boosting Tesla's fortunes now played out, those robotaxis constitute the main pillar supporting Tesla's triple-digit earnings multiple. Certainly, that number has nothing to do with what's happening in the biggest EV market on the planet.
Yahoo
13-05-2025
- Automotive
- Yahoo
Asian Growth Companies With High Insider Ownership In May 2025
As of May 2025, Asian markets are navigating a complex landscape shaped by ongoing trade discussions between major economies and policy adjustments by central banks. With these uncertainties in mind, investors often look for growth companies with high insider ownership as they can indicate strong confidence from those closest to the business, potentially offering resilience amid market fluctuations. Name Insider Ownership Earnings Growth Sineng ElectricLtd (SZSE:300827) 36% 29.0% Laopu Gold (SEHK:6181) 36.4% 40.3% Global Tax Free (KOSDAQ:A204620) 20.8% 35.1% Fulin Precision (SZSE:300432) 13.6% 44.2% Schooinc (TSE:264A) 26.6% 68.9% M31 Technology (TPEX:6643) 30.8% 63.4% Oscotec (KOSDAQ:A039200) 21.1% 85.9% giftee (TSE:4449) 34.5% 67.1% Vuno (KOSDAQ:A338220) 15.6% 148.2% Techwing (KOSDAQ:A089030) 18.8% 65% Click here to see the full list of 618 stocks from our Fast Growing Asian Companies With High Insider Ownership screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★☆☆ Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally with a market cap of approximately HK$1.23 trillion. Operations: BYD generates revenue primarily from its operations in the automobiles and batteries sectors across various regions, including China, Hong Kong, Macau, Taiwan, and international markets. Insider Ownership: 28.6% Revenue Growth Forecast: 13% p.a. BYD Company Limited demonstrates strong growth potential, with earnings projected to grow 15.9% annually, outpacing the Hong Kong market. Recent results show significant sales and production increases, with April's sales volume at 380,089 units compared to 313,245 a year prior. Despite no recent insider trading activity, BYD maintains substantial insider ownership which can align management interests with shareholders. The company's strategic focus on new energy vehicles and energy storage solutions supports its robust position in the industry. Click to explore a detailed breakdown of our findings in BYD's earnings growth report. Upon reviewing our latest valuation report, BYD's share price might be too optimistic. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Smoore International Holdings Limited is an investment holding company that provides vaping technology solutions with a market cap of HK$88.05 billion. Operations: The company generates revenue primarily from the sale of APV and vaping devices and components, totaling CN¥11.80 billion. Insider Ownership: 39.7% Revenue Growth Forecast: 11.7% p.a. Smoore International Holdings is poised for significant earnings growth of 23.4% annually, surpassing the Hong Kong market average. Despite a slower revenue increase of 11.7%, insider confidence remains high with substantial recent share purchases and no major sales. The company's net income declined to CNY 1,303.26 million in 2024 from CNY 1,645.09 million in the previous year, yet it trades slightly below its estimated fair value, suggesting potential investor interest as earnings improve. Delve into the full analysis future growth report here for a deeper understanding of Smoore International Holdings. Our comprehensive valuation report raises the possibility that Smoore International Holdings is priced higher than what may be justified by its financials. Simply Wall St Growth Rating: ★★★★★☆ Overview: Quanta Computer Inc. is a manufacturer and seller of notebook computers across Asia, the Americas, Europe, and internationally, with a market cap of NT$996.39 billion. Operations: The Electronics Sector is a key revenue segment for Quanta Computer Inc., generating NT$3.05 billion. Insider Ownership: 13.9% Revenue Growth Forecast: 26.7% p.a. Quanta Computer's revenue is expected to grow at 26.7% annually, outpacing the Taiwan market, while earnings are projected to rise by 14.9%, slightly above market average. Despite no recent insider trading activity, analysts anticipate a 31.2% stock price increase and note it trades significantly below its fair value estimate. The company reported strong financial results for 2024 with sales of TWD 1.41 trillion and net income of TWD 59.7 billion, reflecting robust growth from the previous year. Get an in-depth perspective on Quanta Computer's performance by reading our analyst estimates report here. Our expertly prepared valuation report Quanta Computer implies its share price may be lower than expected. Explore the 618 names from our Fast Growing Asian Companies With High Insider Ownership screener here. Contemplating Other Strategies? AI is about to change healthcare. These 23 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include SEHK:1211 SEHK:6969 and TWSE:2382. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-04-2025
- Automotive
- Yahoo
Asian Market Highlights 3 Stocks That May Be Trading Below Estimated Value
Amid escalating trade tensions between the U.S. and China, Asian markets have been under pressure, with indices reflecting the broader impact of these geopolitical developments on global economic growth. Despite this volatility, investors are increasingly focusing on identifying stocks that may be trading below their estimated value as potential opportunities arise in uncertain times. Name Current Price Fair Value (Est) Discount (Est) Ningbo Sanxing Medical ElectricLtd (SHSE:601567) CN¥26.92 CN¥53.13 49.3% RACCOON HOLDINGS (TSE:3031) ¥855.00 ¥1705.77 49.9% Nishi-Nippon Financial Holdings (TSE:7189) ¥1844.00 ¥3655.42 49.6% People & Technology (KOSDAQ:A137400) ₩39250.00 ₩77062.66 49.1% Micro-Star International (TWSE:2377) NT$133.50 NT$265.53 49.7% Bairong (SEHK:6608) HK$6.85 HK$13.51 49.3% AeroEdge (TSE:7409) ¥1895.00 ¥3726.08 49.1% BIKE O (TSE:3377) ¥373.00 ¥730.90 49% World Fitness Services (TWSE:2762) NT$80.00 NT$156.52 48.9% giftee (TSE:4449) ¥1485.00 ¥2960.11 49.8% Click here to see the full list of 264 stocks from our Undervalued Asian Stocks Based On Cash Flows screener. Let's uncover some gems from our specialized screener. Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally, with a market cap of HK$1.15 trillion. Operations: The company's revenue segments include CN¥620.73 billion from automobiles and related products, and CN¥179.13 billion from mobile handset components, assembly service, and other products. Estimated Discount To Fair Value: 29.2% BYD Company Limited appears undervalued based on cash flows, trading at 29.2% below its estimated fair value of HK$530.72 per share. The company recently reported a significant increase in net profit guidance for Q1 2025, driven by record sales in the new energy vehicle sector and enhanced profitability from economies of scale and vertical integration. Despite slower forecasted revenue growth compared to peers, BYD's earnings are expected to outpace the Hong Kong market average. Our earnings growth report unveils the potential for significant increases in BYD's future results. Unlock comprehensive insights into our analysis of BYD stock in this financial health report. Overview: Giant Biogene Holding Co., Ltd. is an investment holding company focused on the research, development, manufacture, and sale of bioactive material-based beauty and health products in China, with a market cap of HK$77.28 billion. Operations: The company generates CN¥5.54 billion in revenue from its bioactive material-based beauty and health products segment in China. Estimated Discount To Fair Value: 25.9% Giant Biogene Holding is trading at HK$76, significantly below its estimated fair value of HK$102.59, suggesting it is undervalued based on cash flows. The company reported robust earnings growth for 2024, with net income rising to CNY 2.06 billion from CNY 1.45 billion the previous year. With revenue forecasted to grow at 22.4% annually and earnings expected to increase by over 20% per year, Giant Biogene demonstrates strong financial prospects amidst a favorable market position in Asia. The growth report we've compiled suggests that Giant Biogene Holding's future prospects could be on the up. Click here to discover the nuances of Giant Biogene Holding with our detailed financial health report. Overview: BYD Electronic (International) Company Limited is an investment holding company focused on the design, manufacture, assembly, and sale of mobile handset components and modules both in China and globally, with a market cap of HK$76.50 billion. Operations: The company generates revenue of CN¥177.31 billion from its operations in the manufacture, assembly, and sale of mobile handset components and modules. Estimated Discount To Fair Value: 36.2% BYD Electronic (International) is trading at HK$33.95, significantly below its estimated fair value of HK$53.21, highlighting its undervaluation based on cash flows. The company reported an increase in net income to CNY 4.27 billion for 2024, with earnings per share rising to CNY 1.89 from CNY 1.79 the previous year. Despite a volatile share price recently, earnings are forecasted to grow significantly at over 20% annually, exceeding the Hong Kong market average growth rate. According our earnings growth report, there's an indication that BYD Electronic (International) might be ready to expand. Take a closer look at BYD Electronic (International)'s balance sheet health here in our report. Embark on your investment journey to our 264 Undervalued Asian Stocks Based On Cash Flows selection here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SEHK:1211 SEHK:2367 and SEHK:285. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Bahrain News Gazette
31-03-2025
- Business
- Bahrain News Gazette
BYD Energy Storage Launches Chess Plus for C&I Energy Storage in China
Chess Plus – BYD Energy Storage Chess Plus – BYD Energy Storage BEIJING, March 30, 2025 (GLOBE NEWSWIRE) — BYD Energy Storage, a business division of BYD Company Limited, as a provider of renewable energy solutions, unveiled on March 26 th its next-gen commercial and industrial (C&I) energy storage system, Chess Plus, designed to address challenges in safety, efficiency, and profitability amid a fiercely competitive market. BYD Energy Storage's Chess Plus establishes a new paradigm in energy storage through its cell-to-system (CTS) protection framework. At the core are 'Thick Blade Battery' cells with ceramic terminals, eliminating leakage risks while enhancing corrosion resistance. These cells have passed extreme stress tests including thermal runaway simulations (-25~55℃) and 260% overcharge thresholds. Chess Plus is unique with its 2-hour fire-resistant battery casing and built-in aerosol fire suppression system. The thermal anomalies can be detected in advance thanks to the system-level protection including 8.0-magnitude seismic resistance, IP55 enclosures with sloping roofs for water drainage, and AI-driven risk prediction algorithms. Chess Plus features ultra-long life battery cells supporting over 10,000 cycles, ensuring durability for steady operations. Its dual-mode cooling system—liquid cooling for batteries and smart forced air cooling for electronic equipment—reduces auxiliary power consumption by 20% while enhancing thermal consistency. This design extends component lifespan by 30%. Chess Plus integrates high-performance edge computing for real-time SOC optimization and fault prediction. The system's modular architecture allows independent data and control channels for stable operation. Chess Plus is an energy storage solution for many application scenarios in industrial parks, EV charging hubs and microgrids. With AI-driven management, it is an ideal option for optimizing energy use and maximizing ROI across diverse settings. Dr. Wang Xiaoye from BYD Energy Storage emphasized, 'Only manufacturers mastering cell-level R&D can deliver true value and efficiency. Chess Plus reflects our 17-year energy storage expertise and commitment to sustainable innovation.' BYD Energy Storage has long been committed to the R&D of C&I energy storage products. Its previous C&I product applied in a Behind-the-Meter facility in Jiangsu, China helps generate $3 million annually via two cycles per day and grid incentives, demonstrating a 3-year payback period. As industries worldwide embrace green energy, Chess Plus shows considerable promise as a dominant role in the market with its strong stability and adaptability. With unmatched safety and smart operational tools, BYD Energy Storage continues to lead the global shift toward resilient and cost-efficient energy storage. Photo available at Media Contact: Qifen ZHONG [email protected] GlobeNewswire Distribution ID 9413509
