Fangde Securities: The era of electric vehicles is coming, and the leader of new energy vehicles in Hong Kong stocks maintains high valuation and high growth

Guide: BYD's share price has risen sharply in the past six months, and the market's expectations for its new energy vehicles are rising. Although it is unable to benchmark Tesla, BYD, which has mastered the battery, automobile manufacturing, electronic processing and other industries at the same time, is still a Hong Kong stock. of arrogance.
BYD Chairman Wang Chuanfu is optimistic about the new era
On January 16, Wang Chuanfu, chairman of BYD Co., Ltd., delivered a speech at the online forum of the 7th China Electric Vehicle Hundred People's Association. Acceleration, noise and energy consumption, maintenance convenience, intelligence and life cycle cost have surpassed fuel vehicles, and the time has come for electric vehicles to replace fuel vehicles. Wang Chuanfu said that the state promulgated the "New Energy Vehicle Industry Development Plan", which has strengthened the confidence and expectations of the industry's development, and proposed that the sales of new electric vehicles will account for 20% in 2025, and the electric vehicles in the public sector will be electrified by 2035. In the next five years, the compound annual growth rate of the industry will reach more than 37%. At present, many cities in my country are formulating the "14th Five-Year" new energy vehicle industry development plan, clarifying the promotion and application goals of electric vehicles in the next five years, and pressing the "fast-forward button" of development. In terms of BYD's industry layout, Wang Chuanfu revealed that, In 2021, BYD will accelerate the opening of the supply of key components to the industry. "At the beginning of this year, BYD released a new brand logo in the domestic passenger car field, embracing the century-old transformation of the automobile industry with a more open attitude, and striving to blaze a trail from independent innovation to open innovation. With the outbreak of the new energy automobile industry, the company will Seize the opportunities of industry development and increase the layout of the new energy vehicle business. Electrification and intelligence are the future development directions of the automobile industry.
The software and hardware layout in the energy and chemical field realizes the leap from traditional cars to smart cars. With the accumulation of research and development in the field of power batteries, technological advantages and pioneering blade battery technology, the company will continue to increase the production capacity of power batteries and promote the output of Chinese power batteries to global automakers. BYD's product technical capabilities have been significantly dominated by the "low-end car" label for many years. In July 2020, BYD launched the pure electric car "Han", and its sales increased by 10 times in half a year. The popular technology and design language of "Han" - blade battery, DM power system, "Dragon Face" family design, etc. - have been used and upgraded in subsequent products. DM is BYD's hybrid technology, DM-i is relative to DM-p, p represents performance, and i represents economy. Among them, the thermal efficiency of DM-i is as high as 43%, which is at a very good level in the global mass production of gasoline engines. Another strong business segment is batteries. The blade-shaped lithium iron phosphate battery that has undergone "magic modification" is in "Han". has already proven itself attractive to consumers. According to the company's statement, all BYD pure electric vehicles this year will use blade batteries. At the same time, the external sales of blade batteries are also gradually being launched, and the global market share of power batteries is expected to increase to 15%. The main rival in the power battery field, CATL, has an installed battery capacity of 34GW in 2020, and BYD's installed battery capacity in 2020 is 10GW. But the technology path BYD chooses is cheaper. Analysts at Fangde Securities said that BYD has indeed become more expensive in the short term, but considering that new energy vehicles have already undergone a valuation system, Tesla has created a very exaggerated valuation level. In contrast, BYD even Considering the relatively cheap existence of new energy vehicles, we believe that electric vehicles will inevitably replace fuel vehicles. The factory will still maintain its strong position, and BYD can still be optimistic in the long run. Fangde Securities is an Internet brokerage dedicated to providing more professional and convenient trading and financing services in global financial markets such as Hong Kong stocks, US stocks, and A shares (Shanghai-Shenzhen-Hong Kong Stock Connect) for Chinese investors around the world. Provide securities brokerage services, products covering global capital market stocks, securities, ETFs and other types of assets, with high technology and resource advantages in the field of Hong Kong and US stock trading. Fangde Securities, you can apply for a Fangde account online on your mobile phone without leaving your home, the whole process is free
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