To The Moon

Some latest developments on $BYD COMPANY(01211)$

Stock Split (June 10)

• Implemented a 3-for‑1 stock split (also referred to as issuance of bonus and capitalisation shares) on June 10, 2025. H‑shares were under a 91‑day lock‑up from March 11 to June 10, 2025 

Supplier Payment Terms Commitments

• Joined other Chinese automakers in pledging to pay suppliers within 60 days to improve cash flow 

Sales & Price War Dynamics

• May 2025 saw BYD's highest monthly EV sales so far, with around 382,000 units sold—its best sales month of the year 

• But BYD also has implemented aggressive price reductions across multiple models, with cuts ranging from 20% to 34%

• The steep price reductions have raised concerns about a widening EV price war, prompted warnings from Chinese regulators, led to an estimated US$20 billion drop in market value, and sparked debate over potential pressure on BYD’s profit margins.

Still BYD price action has been healthy…

• Price Structure: BYD is currently trading within a rising channel, with higher highs and higher lows indicating a steady uptrend. The recent bounce off the lower boundary of the channel reinforces this structure.

• Moving Averages: The stock is trading above the 21-day (blue) and 55-day (red) moving averages, suggesting short-term bullish momentum. It is also comfortably above the 200-day MA, supporting the medium-term uptrend.

Using DLCs for Short-Term Trading on BYD

• If price continues rising within the uptrend channel, traders may consider using long DLCs (e.g. $BYD 3xLongSG271125(W3QW.SI)$ ), which are designed to magnify the daily gains of the underlying stock.

• If the price fails to sustain above short-term support or breaks the channel to the downside, short DLCs (e.g. $BYD 3xShortSG271125(REGW.SI)$ ) may be used to gain exposure to potential short-term declines.

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