Another Milestone in New Energy Sector: The Market Capitalization of BYD Exceeding CNPC

SHANGHAI, Aug 5 (SMM) - Since the market capitalization of BYD (002594; 1211) exceeded 800 billion yuan, it is now growing toward the 900 billion yuan milestone. Currently, the company’s A-share total market value stood at 881.5 billion yuan, more than that of the Bank of China and CNPC (China National Petroleum Corporation), and is among the top ten A-share tickets in terms of total market capitalization.

As BYD's total market capitalization continues to rise, two new energy industry giants, CATL and BYD, have both stepped up among the top-10 A-share tickets in terms of market value. It's worth noticing that, some research institutes even estimate that the company’s potential will lead it to the trillion market value club.

According to research, July sales of BYD finished cars are expected to reach 60,000 units, with 20,000 pure electric cars and 30,000 hybrid cars. During 2021-2023, the valuation of the finished cars sector is expected to exceed 400 billion yuan. For battery, BYD has secured a lithium hexafluorophosphate material supply agreement, with reserved materials of about 15,000 mt during 2H21-2022. It is expected that in 2022-2023, the internal demand of motive power battery will be higher, and external supply may exceed expectations. In the 21-23 period, the valuation of the battery sector could potentially reach 400 billion yuan.

Policies also offered strong support to the new energy sector. It is clearly stated in an official document that by 2025, NEVs sales will account for about 20% of total sales, and further increase to 40% by 2030. By 2035, NEVs will become mainstream models, accounting for more than 50% of total sales. The increase in energy demand will rapidly drive a gradual shift in the energy mix from coal to natural gas and renewable energy.