Duan Yongping says BAIC Motor's business model fails first screen

"Chinese Buffett" Tracking10-30

On October 30, value investor Duan Yongping responded on Xueqiu to a question about BAIC Motor, saying, "The business model seems unable to pass the first screen; I won't look further."

His comment followed a user's pitch outlining an investment case for BAIC Motor. The user cited a renminbi market capitalization of more than RMB 5 billion, total assets of RMB 50 billion, and nearly RMB 20 billion in cash. The user argued that Beijing Benz is the company's core profit pillar; that BAIC Group is the largest shareholder of Mercedes-Benz and their partnership is stable with “no possibility” of termination; that Mercedes-Benz’s new all-electric GLC could win market recognition; and that BAIC’s regular models would use Geely’s hybrid system in the future.

The user proposed holding the shares for 3–5 years to await a profit turnaround and subsequent market-cap growth, and asked Duan for guidance. Duan did not elaborate beyond his brief screening remark.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment