Copy the bottom to increase the position? BYD's share price fell 40%, and its market capitalization lost more than 300 billion.

On Feb. 3, BYD's share price hit an all-time high of 273.37 yuan, with a total market capitalization of 781.8 billion yuan, within walking distance of 800 billion yuan.

But in the more than a month since then, BYD has continued to decline, in the words of BYD shareholders, "has fallen numb!"

As of March 24, BYD closed at 162.74 yuan per share, down 3.69%, with a turnover of 4.082 billion, with a total market capitalization of 465.6 billion. Compared with Feb. 3, BYD's share price fell 40%, wiping out 316.2 billion of its market capitalization, equivalent to losing an SAIC group and 90.4 billion more.

Sales halved in February

On March 4th, BYD officially released the production and sales of KuaiBao in February. According to the data, BYD sold 20927 vehicles in February, up 106.45% from a year earlier, of which 10355 new energy vehicles were sold, compared with 2803 in the same period last year, up 207.30% from a year earlier.

According to the announcement, BYD sold 63328 vehicles and 30533 new energy vehicles from January to February in 2021.

BYD sold 10123 new energy passenger cars in February, and in terms of specific models, BYD Han is still one of the best-selling models, with February Han series (EV + DM) selling 5028; Tang EV2 monthly sales of 1313, Tang family sales of more than 230000; Song MAX sales of 7724; Qin Pro DM2 monthly sales of 2105; and BYD e series sales of 587 in February.

According to official figures released by BYD, BYD sold 42000 units a month in January and 20927 in February, down 51 per cent from a year earlier. Obviously, compared with January, BYD's February sales directly halved.

Notably, the announcement showed that BYD sold 10572 fuel vehicles in February, accounting for more than 50 per cent of BYD's overall sales in February. It shows that fuel vehicles are still responsible for the sales of BYD at present.

Precisely because fuel vehicles still account for the majority of sales, BYD released in January the "unique technical route advantage of DM-i super hybrid based on electricity", with Qin PLUS DM-i, Song PLUS DM-i and Tang DM-i super hybrid models to attack the compact car, compact SUV and medium-sized SUV fuel vehicle market respectively, opening up more incremental space for new energy vehicles.

In terms of product layout, in addition to the above three hybrid models, the new Song MAX, the new Song Pro, the new Han and other models will also be released one after another.

In addition, on March 8, BYD Qin PLUS DM-i, known as the "fuel car subverter", was officially listed with a subsidized price of 105800-145800 yuan. As the world's first strategic model equipped with a DM-i super hybrid, it accelerates in 7.3s with a range of 120km for pure electricity and 1245 km for fuel and electricity.

On March 21, BYD Yuan Pro officially launched. The new car positioning 100, 000 small pure electric SUV, offers two models, one Life Edition and one Life Edition. The NEDC has a range of 401km, and the price after comprehensive subsidy is 121300 yuan and 131400 yuan respectively.

In addition, the BYD Song PLUS DM-i will be launched on March 25, and the world's first new energy vehicle with dTCS, the Han EV, will also make its debut on March 30. Existing models and upcoming new models may lead to a big increase in BYD's sales in March.

Is it worth reading the bottom?

BYD's market capitalization has shrunk sharply, and its share price has begun to fall. Is it a good time to make a bottom? There's no hurry, let's move on.

Although BYD got off to a bad start to the year of the Ox, there was a lot of good news in March.

The subsidy for new energy vehicles is 13.7 billion, and BYD owns 4.3 billion. On March 13, the official website of the Ministry of Industry and Information Technology announced the final review of the liquidation and examination of subsidy funds for the promotion and application of new energy vehicles in 2019. Audit information shows that in 2019, a total of 417530 new energy vehicles were subsidized by automobile enterprises across the country, with a subsidy of 13.696 billion yuan after approval. Among them, from the perspective of vehicle enterprises, BYD will become the automobile company that receives the most subsidies with an approved subsidy amount of 4.36 billion yuan, accounting for 31.83% of the total subsidy amount. Together with 3.46 billion yuan in subsidies for new energy vehicles in 2017 and 3.632 billion yuan in 2018 subsidies for new energy vehicles in 2020, BYD has received a total of 11.452 billion yuan in national subsidies for new energy vehicles for three consecutive years.

The registered capital of BYD Automobile Co., Ltd. increased by 224.3% to about 4.38 billion yuan. According to APP, recently, BYD Automobile Co., Ltd. has undergone industrial and commercial changes, and its registered capital has increased from about 1.35 billion yuan to about 4.38 billion yuan, an increase of 224.3 percent. Among them, BYD Co., Ltd. contributed 4.337 billion yuan, holding 99%, Shaanxi Huaqin Investment Group Co., Ltd. contributed about 43.8131 million yuan, holding 1%.

According to public data, behind Shaanxi Huaqin Investment Group Co., Ltd. is Shaanxi Investment Group Co., Ltd., with a shareholding ratio of 100%. The major shareholder behind Shaanxi Investment Group Co., Ltd. is the State-owned assets Supervision and Administration Commission of the Shaanxi Provincial people's Government, with a shareholding ratio of 100%. This means that the increase of registered capital of BYD Automobile Co., Ltd. has introduced Shaanxi State assets, a new shareholder. At the same time, OFweek New Energy Automobile Network speculates whether the increase in registered capital is due to the negotiation of large-scale projects in BYD, because some projects are qualified to participate only when the registered capital reaches a level.

Of course, in addition to the good news in March, BYD's own strong foundation can not be ignored.

BYD's business covers electronics, automotive, new energy, rail transit four major areas, the world has more than 30 industrial parks, has achieved the strategic layout of six continents. Recently, it has paid a lot of attention to its electronics and new energy business.

Let's start with the new energy business. BYD has achieved full coverage of upstream mineral resources, mid-stream batteries and spare parts, and downstream vehicles. The layout of the whole industry chain of new energy vehicles also means that BYD has a significant cost advantage over other car companies.

Among them, the power battery market, BYD "Fudi" company is actively expanding production. According to public information, the "blade battery" production capacity of Fudi Chongqing plant has reached 20GWhh, and is planned to be increased to 35GWh.Changsha plant will be officially put into production at the end of 2020 with a designed production capacity of 20GWh.Guiyang base will invest in July this year with a design capacity of 10GWh.Bengbu Fudi project has started construction, and the first phase of planning annual production capacity 10GWh.

In other words, the total production capacity of the blade battery that has been put into production and planning reaches 75GWh.

It is worth noting that significant progress has been made in the external supply of blade batteries. On March 16, according to South Korean media reports, BYD may provide blade batteries to Hyundai Motor from 2022. At present, BYD has set up a Hyundai project team. It is also reported that BYD plans to use part of the battery assembly line in Chongqing to supply Hyundai cars.

In terms of electronic business, BYD Semiconductor is second only to Infineon Technology with an 18% market share in China's IGBT market in 2019. According to BYD, BYD Semiconductor is the largest and most mature automotive specification grade IGBT (insulated gate bipolar transistor) manufacturer in China, breaking the technology monopoly of overseas manufacturers through the whole industry chain layout of IGBT chip design and manufacturing technology, IGBT module packaging and testing application technology.

The recent global shortage of automotive chips has led many car companies to stop or reduce production, but BYD, which developed its own chips, can deal with it calmly, and its semiconductor technology is once again familiar to the public. At present, BYD Semiconductor has received China International Capital Corporation IPO tutoring, and completed the tutoring record.

There is a strong and weak, BYD also has a short board that needs to be made up, that is intelligence. This is also the focus of research and investment by many car companies, even Internet giants.

It has always been said that the future disruptive change of new energy vehicles is from hardware-defined cars to software-defined cars, while self-driving is not BYD's strong suit and needs to be caught up.

To sum up, BYD plans to build high-end brands upward and DM-i hybrid series models downward to attack the traditional fuel car market, creating a blue sea in the Red Sea. With the steady progress of power battery capacity planning and external supply, semiconductors will also have their own production lines this year, and after the whole industry chain is opened, BYD's car-building profits will also be considerable. And autopilot, which lags behind for the time being, has already set up a team to carry out road tests.

As a result, BYD's share price is likely to rise slowly, but because the dynamic price-to-earnings ratio is too high and there is a certain Bubble, it is not realistic to return to the high price of 270 yuan in the short term.