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When will BYD's market value reach trillion yuan? Tianfeng Securities gave the latest prediction: just this year!
On January 10, Tianfeng Securities released its first coverage report for BYD. Analysts at Tianfeng Securities believe that based on BYD's 2022 segment revenue, the company's corresponding market value is 1.34 trillion yuan.
It is worth noting that since the beginning of the year, BYD's stock price has fallen by more than 10%. As of the close of trading on January 11, the company's stock price was reported at 239.09 yuan / share.
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How to estimate the market value of 1.34 trillion yuan
According to the Tianfeng Securities Research Report "The thick accumulator will eventually succeed, and the leading prospects of new energy vehicles can be expected", BYD's market value will reach 1.34 trillion yuan in 2022.
How is this 1.34 trillion yuan calculated?
Tianfeng Securities split BYD's business into different sectors for performance forecasting and valuation for different sectors.
Tianfeng Securities predicts that BYD's automotive business revenue in 2022 will reach 202.4 billion yuan, with a growth rate of 91.2%; mobile phone parts and assembly business revenue will reach 93.3 billion yuan, an increase rate of 28.1%; and the revenue of the second-charge battery business will reach 30.5 billion yuan, with a growth rate of 110.3%.
Tianfeng Securities said that the rapid development of the new energy vehicle business, which has not yet been fully profitable, is suitable for the valuation of the price-to-sales ratio, and compared with the market-to-sales rate of Great Wall Motors, Xiaopeng Automobile and Ideal Automobile, it can give BYD automobile business a market-to-sales rate of 5.5 times. Then, the corresponding market value of this business is 1106.9 billion yuan.
In terms of secondary battery business, Tianfeng Securities said that considering that there are still losses in the small battery and photovoltaic cell business, and the power battery business has just started, it is suitable for the valuation of the price-to-sales ratio, referring to the situation of Ningde Times, Yiwei Lithium Energy and Guoxuan Hi-Tech, giving the company a market-to-sales rate of 6.4 times, corresponding to a market value of 195.2 billion yuan.
In terms of semiconductor business, Tianfeng Securities believes that the company's semiconductor business is small in scale and the profitability is not clear, so it uses the price-to-sales ratio valuation, with reference to the situation of Times Electric, Star Semiconductor and Silan Micro, to give the company 5 times the price-to-sales ratio, and the corresponding market value is 7.5 billion yuan.
In terms of electronic business, Tianfeng Securities believes that the company's electronic business is stable, and it can use the PE valuation method to refer to Changying Precision, Luxun Precision and other enterprises, and the company gives a valuation of 10 times the price-earnings ratio, corresponding to a market value of 28.2 billion yuan.
The market capitalization of each sector is added together to get BYD's valuation of 1.34 trillion yuan in 2022.
(Source: Tianfeng Securities Research Report)
However, Tianfeng Securities is not the only institution that calls out a trillion-dollar market value to BYD. Before Tianfeng Securities, Citi released a research report saying that BYD's sales forecast for new energy vehicles from 2022 to 2024 was raised to 1.3 million, 1.75 million and 2 million respectively.
Topped the 2021 sales champion
According to data previously released by BYD, in December 2021, the company sold 97,990 passenger cars, up 77.9% year-on-year. Among them, the sales of new energy passenger cars were 92,823 units, up 236.4% year-on-year, exceeding 90,000 units for two consecutive months, once again breaking the record.
Relying on DM-i super hybrid, e-platform 3.0, blade battery and other leading technologies, BYD's new energy models will perform particularly well in 2021. In 2021, BYD's cumulative sales of EV models and DM models reached 320,810 units and 272935 units, respectively, an increase of 144.9% and 467.6% year-on-year, respectively.
While the new energy vehicle sector has achieved gratifying results, BYD's blade battery and semiconductor plates have also made great progress.
In April 2021, Wang Chuanfu officially announced that ALL of BYD's new energy passenger cars began to be fully equipped with blade batteries. Relevant industry insiders said in an interview with China Securities News and China Securities Taurus reporter that at present, BYD's blade battery production capacity is rapidly climbing, the quality is stable and reliable, far exceeding expectations, and supplying to the whole industry. "In the future, you will see more and more blade batteries for new energy vehicle brands." The person said.
In addition, after more than ten years of research and development accumulation and large-scale application of new energy vehicles, BYD Semiconductor has grown into a large-scale IDM vehicle-grade IGBT manufacturer in China.
At the 3rd Hardcore China Core Leadership Summit and Automotive Chip Technology Innovation and Application Forum held on December 28, 2021, Sun Yunshuai, senior marketing manager of BYD Semiconductor's Power Semiconductor Product Center, said that at present, BYD Semiconductor's IGBT5.0 technology based on high-density Trench FS has achieved mass production.
Editor: Zhang Nan Zheng Yashuo