The supply of new models is in short supply and the total market capitalization of BYD is rising.

SMM: after hitting a new high recently, the share price of BYD, which hovered at its high level, continued to rise in the afternoon and fell back slightly in the afternoon. As of press time, it is still up more than 7%. Hong Kong shares of BYD also rose by more than 9%.

There are multiple factors resonating in the news. At present, the automobile industry has entered a period of sales recovery, with considerable sales of new BYD models and the output of power batteries and vehicle platforms opening up new growth space.

From the industry level, Tianfeng Securities believes that since the second quarter, with the weakening of the impact of the epidemic, consumer demand for car purchases has recovered quickly, promoting retail sales to strengthen month by month, but at present, factory production and sales are relatively sound, and channel inventory is still at a low level. The high temperature holiday in August is conducive to inventory callback and structural optimization, and with the arrival of the "Golden Nine Silver Ten", the industry is expected to fully turn to the inventory increase cycle. It is optimistic that the auto market will continue to recover in the second half of the year.

At the 2020 Beijing International Auto Show last weekend, BYD took part in blockbuster models such as Han and 2021 Tang and Song PLUS, and launched E-platform, DiLink, DM-p, blade battery, new powertrain and other technologies. Shen Wanhongyuan believes that the trend of mainstream independent brands is to increase platform R & D investment, promote overall vehicle cost reduction and improve development efficiency.

At the same time, BYD also demonstrated its DiPilot intelligent driving assistance system, DiLink 3.0 intelligent network connection system, APA full-scene automatic parking, vehicle OTA remote upgrade and other functions. Shenwan Hongyuan commented that under the spring tide of automobile intelligent network connection, the active input of independent brands to ensure the continuous improvement of their product strength will make the brand further upward.

Last week, BYD announced that the Han models launched in July were in short supply and were stepping up production capacity. Anxin Securities expects that with the launch of new cars and sales climbing, the company's new energy vehicle sales growth is expected to continue to rise in the coming months. In addition, BYD's DM4.0 technology is also expected to be released in the fourth quarter, and the launch of the DM4.0 model will bring a significant increase in sales in 2021. The future is something to look forward to.

In terms of its externally supplied parts, since 2020, a number of models equipped with BYD power batteries, such as BAIC New Energy and Changan Ford, have entered the catalogue of the Ministry of Industry and Information Technology and mass production is imminent.

Recently, BYD has been favored by many capitals. Last week, BYD received a series of surveys on asset management by CITIC and AIA. Northbound funds also increased their holdings by 318 million yuan on September 25. Huaxi Securities said that in view of the firm position of the company's new energy passenger car leader, the new product cycle will lead to a comprehensive rebound in new energy vehicle sales, superimposed power battery external supply, vehicle platform output is expected to open a broader space for growth.