To The Moon

🌟🌟🌟BYD $BYD COMPANY(01211)$  $BYD HK SDR 10to1(HYDD.SI)$ is the largest EV manufacturer in China with market share of 36.1% compared to $Tesla Motors(TSLA)$  at 7th position with market share of 3.4% in the January to October 2024 period.   BYD is also the world's 2nd largest battery maker behind CATL with a market share of 16.4% in the January to September 2024 period.

BYD which stands for Build Your Dreams, first started as a battery manufacturer in 1995.  By the early 2000s, BYD was the world's 2nd largest producer of rechargeable batteries.  Founded by Wang Chuanfu, he started BYD Auto in 2003 and  through his vision and hardwork, BYD has pivoted to become the world's largest manufacturer of plug-in EVs. 

In 2011 Elon Musk, CEO of Tesla laughed at BYD's products and dismissed the company as a threat.  Fast forward to 2024, Elon Musk  is no longer laughing at BYD.  He said that Chinese Automakers could "demolish" global rivals without trade barriers.  

On November 1, BYD said in its Q3 24 Earnings that it has surpassed Tesla's revenues on EV sales for the first time.  BYD recorded revenues of RMB 201.1 billion (USD 28.2 billion) in the 3 months to September 30 2024.  This is 24% higher than the previous year quarter.  In contrast Tesla posted sales of USD 25.2 billion over the same period. 

BYD briefly overtook Tesla as the world's biggest EV producer at the end of last year.   There are 5 main reasons why BYD is poised to grow exponentially in the future. 

For starters, BYD is known for its cheap value for money EVs.  In 2024, BYD launched a series of price cuts which included lowering the price of the ultra cheap Seagull hatchback to under USD 10,000.  The price cuts gave BYD an advantage over Tesla whose cheapest EV in China is RMB 231,900 (USD 32,600) for Model 3 and have resulted in increased sales for BYD. 

Another reason is BYD has expanded into luxury vehicles.   BYD launched the Yangwang U8, a USD 150,000 premium SUV that comes with an onboard drone last year.  BYD also unveiled its first supercar - The Yangwang U9 in February this year which costs RMB 1.68 million (USD 235,000).

The expansion of BYD into China's premium market has put pressure on European giant Automakers like Mercedes and BMW.  This would enable BYD to target more affluent customers and grow beyond China's competitive EV mass market. 

BYD has been expanding rapidly overseas this year to boost sales outside China.  BYD said that it wants 50% of BYD's sales to come from overseas in the future. 

BYD now has over 30 industrial parks and production bases worldwide.  BYD's 1st EV factory in Southeast Asia is in Rayong Thailand which opened in July 2024.  BYD is building its first European production base in Hungary which will produce EVs and plug in hybrids for the European Market. 

BYD has started production in Uzbekistan in January 2024 with a Song Plus hybrid crossover.  BYD's Brazil manufacturing plant is expected to start operations by the end of 2024 or early 2025.

Another reason why BYD is doing so well is the success of its hybrid range.  Unlike Tesla, BYD also offers a selection of hybrid vehicles which are popular in China.  311,000 of the 500,000 passenger vehicles BYD sold in October were hybrids.  BYD's Hybrid sales have risen 62% year on year. 

Finally BYD has a big advantage over its competitors because BYD tries to make almost every component in house.  BYD produces its own batteries and computer chips.  BYD has a high level of vertical integration.  This means that  BYD makes many key components rather than sourcing them externally.  BYD can therefore control its production costs and have a great competitive edge over the other auto makers. 

Performance wise $BYD COMPANY(01211)$  is down 8% over the past 5 days but up 26% year todate.  In 2023 BYD has risen by 6%.

$BYD HK SDR 10to1(HYDD.SI)$ is down 2.9% in the past 5 days and 8.5% year todate. 

Wall Street Analysts are bullish on BYD with a Buy rating, Average Target price of HKD 343.02, an upside potential of 29%.

BYD's SDR in Singapore is currently trading at 10 to 1 ratio.  That means a Singapore investor only needs to pay a minimum lot of 100 shares at SGD 4.58 or SGD 458 per lot  rather than 10 times that amount in Hong Kong. 

BYD also pays dividends and the current dividend yield is 1.28%.  Being a Singaporean, I prefer to invest in HYDD (BYD SDR) as I can receive my dividends in Singapore dollars without any loss in conversion rates.

I believe that BYD is a great EV company to invest as it ticks all the core fundamentals of a quality stock.  BYD is profitable, has a strong balance sheet and an excellent management team under Wang Chuanfu.  BYD's growth story has just started and it is more than likely to overtake many Automakers to become the world's largest automaker in the future especially with its current pace of rapid expansion overseas. 

I am bullish on BYD and believe that it has tremendous upside potential in capital growth.  What's even better is that I can take advantage of Tiger Brokers' current commission free brokerage to invest in HYDD (BYD SDR) before 31 December 2024.

I would like to Build My Dreams with BYD. 

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