On January 17 and 18, more than 200 people surveyed BYD in the form of a conference call. From the investor relations activity record table, it was noted that in December 2021, the 1,000th Norwegian Tang EV was delivered, and BYD passenger cars were successfully deployed in the European market.
In the whole year of 2021, BYD achieved a cumulative retail sales of 584,000 new energy passenger cars, an increase of 221.3% year-on-year. With the substantial increase in sales volume, the company's stock price rose by 38.06% in 2021, and hit a record high price of 333.33 yuan / share in October (before the restoration).
As the stock price hit new highs, BYD's management reductions became more and more frequent. In 2021, BYD's management reduced its holdings by a total of 12.9416 million shares, with a reduction amount of 3.307 billion yuan, ranking third in the ranking of the amount of management reductions of all A-share listed companies.
At the same time as BYD executives reduced their holdings by a large amount, a number of fund management companies, including Qianhai Open Source Fund and Guangfa Fund, increased their shares in the company to varying degrees, and as of the end of the third quarter of 2021, by the end of the third quarter of 2021, BYD's fund holdings accounted for 9.47% of the company's circulating share capital, an increase of 2.08% year-on-year.
New energy passenger car sales increased by more than 2 times In the first three quarters, it was difficult to increase revenue and profit
According to the 2021 domestic new energy passenger car retail sales data released by the Association of Passenger Vehicles, domestic new energy passenger vehicles (BEV, PHEV) achieved retail sales of 2.989 million units in 2021, a substantial increase of 169.1% year-on-year. Among them, BYD's new energy passenger cars achieved a cumulative retail sales of 584,000 units in the whole year, an increase of 221.3% year-on-year, occupying the top spot in the ranking of new energy passenger car retail sales manufacturers in 2021.
Figure 1: Retail sales ranking of new energy manufacturers from January to December 2021
From the perspective of wholesale sales, BYD's new energy passenger cars ended the decline in wholesale sales for two consecutive years in 2019 and 2020, and achieved wholesale sales of 593,700 units in 2021, a substantial increase of 231.6% year-on-year.
Figure 2: BYD's wholesale sales of new energy passenger cars from 2018 to 2021
With the substantial growth of the company's new energy vehicle sales, the cumulative increase in the company's stock price in 2021 was 38.06%, and in October it hit a record high price of 333.33 yuan / share (before the restoration).
As of the close of trading on January 18, 2022, the company's stock price closed at 266.08 yuan / share, a correction of nearly 20% from the highest point of the stock price in October, PE (TTM) was 237.69 times, and PB (MRQ) was 9.4 times. Wind's tertiary automotive industry PE (TTM, integral method to remove negative values) is 34.72 times, and PB (MRQ, integral method to remove negative values) is 2.94 times.
In the first three quarters of 2021, the company achieved operating income of 145.192 billion yuan, an increase of 38.25% year-on-year; realized a net profit attributable to the mother of 2.443 billion yuan, down 28.43% year-on-year, and it is difficult to increase profits; the net profit of non-attributable to the mother was only 886 million yuan, and the government subsidies included in the profit and loss of the current period reached 1.5 billion yuan.
Management reduced its holdings to cash out by more than 3.3 billion yuan, ranking third among A-share listed companies
As BYD's share price hit a new high, the company's management reduction became more and more frequent. According to Wind statistics, in 2021, BYD's management reduced its holdings by a total of 12.9416 million shares, with a reduction amount of 3.307 billion yuan, ranking third in the ranking of the management reduction of all A-share listed companies, second only to Hikvision and Goertek Acoustics.
Figure 3: The amount of management reduction of A-share listed companies in 2021 ranked in the top ten
From 2018 to 2020, BYD's management reduced the number of shares by 3.3225 million shares, 4.9 million shares and 6.8058 million shares, respectively, and the amount of shares reduced was 157 million yuan, 244 million yuan and 530 million yuan, respectively. In 2021, the number and amount of shares reduced by the company's management have increased significantly, of which the number of shares reduced has increased by more than 90% year-on-year.
Figure 4: The number and amount of shares reduced by BYD's management from 2018 to 2021
In 2021, the largest reduction in shares held by BYD's management is director Xia Zuoquan. Xia Zuoquan joined Shenzhen BYD Industrial Co., Ltd. in 1997, was an executive director and vice president of the company, and is currently a non-executive director of the company. From July to December 2021, Xia Zuoquan reduced his holdings in the company by a total of 11.9418 million shares through centralized bidding, accounting for 0.659% of the total share capital of the company's A shares, and the average price of the reduction was between 249.4 yuan / share - 299.872 yuan / share, with a total cash out of more than 3.1 billion yuan.
Figure 5: Bydir director Xia Zuoquan reduced his holdings in 2021
In February 2021, Li Ke, vice president of the company, reduced his holdings by a total of 1 million shares through centralized bidding, and the average price of the reduction was between 198.514 yuan / share and 214.597 yuan / share, with a total cash out of more than 200 million yuan.
Figure 6: Bydir vice president Li Ke reduced his holdings in 2021
In addition, Rongjie Investment Holdings, a shareholder holding more than 5% of the company's shares, reduced its holdings in the company by a total of 15.0645 million shares from September 2020 to January 2021, with a total cash out of about 2.358 billion yuan. It is worth mentioning that the actual controller of Rongjie Investment Holdings is Lv Xiangyang, vice chairman of the company and cousin of Wang Chuanfu, and Lü Xiangyang and his spouse Zhang Changhong hold 89.5% and 10.5% of the equity of Rongjie Investment Holdings respectively.
In addition to reducing holdings and cashing out, the equity pledges of Lv Xiangyang and Rongjie Investment Holdings in 2021 are also more frequent. Based on the benchmark of the pledge start date, in 2021, Lv Xiangyang and Rongjie Investment Holdings made a total of nearly 40 pledges to 20 institutions, including Haitong Securities and CITIC Securities. In January 2022, there were four pledges in succession, and as of the latest pledge on January 11, Lv Xiangyang and Rongjie Investment Holdings had a cumulative pledge of 92.74 million shares, accounting for 46.41% of the company's shares and 3.24% of the company's total share capital.
Fund holdings increased by more than 2% year-on-year
While BYD executives have reduced their holdings in a large amount, BYD has also received increased holdings from many fund management companies. According to incomplete statistics, as of the end of the third quarter of 2021, BYD's fund holdings were 109 million shares, an increase of 24.6253 million shares year-on-year; the proportion of the company's outstanding share capital was 9.47%, an increase of 2.08% year-on-year. Among them, the number of shares held by Qianhai Open Source Fund Management Company was 13.9498 million shares (the 14 fund products under the merger), and the number of shares held increased significantly over the same period last year, which was the fund company holding the most BYD.
Figure 7: BYD's top 10 fund companies with positions as of the end of the third quarter of 2021
In addition, fund management companies such as GF Fund and Southern Fund also increased their holdings of BYD to varying degrees in the third quarter.
This article originated from Bread Finance