2 Good News Boosts Motley Fool Share Price Up 11.4%

2 Good News Boosts Motley Fool Share Price Up 11.4%


© Reuters. BYD segment: 2 good news warrants a price increase of 11.4%.

BYD (NYSE:BYD) stock has been on a roll over the past few days. At first, they entered forcefully because of rumours. Investors feared billionaire Warren Buffett would sell shares of Berkshire Hathaway (NYSE:BRK-B). However, there was no confirmation of this and only a day later there was an explanation of uncertainty.

The Hong Kong Stock Exchange simply transferred physical shares to the electronic share portfolio. Citibank (NYSE: ) was also included. The Central Clearing and Settlement System of the Hong Kong Stock Exchange acquired 225 million shares of BYD which were exactly equivalent to the shares of Berkshire Hathaway.

BYDpaper it initially stabilized before rising again to 11.4%. The reason for this is the positive reports of the company.

BYD with increased profit and volume BYD expects a significant increase in profit in the first half of 2022 due to higher sales of new energy vehicles (electric and hybrid). The group expects 2.8 to 3.6 billion yuan, which will correspond to a year-on-year increase of 138.6 to 206.8%.

After deducting special income, net profit is expected to be 2.5-3.3 billion yuan, up 578.1-795.1% year-on-year. Earnings per share are expected to reach 0.96-1.24 Chinese Yuan, up 134.1-202.4%.

BYD primarily benefited from its strong electric vehicle business, which continued to grow despite a tough environment, chip shortages, pandemic lockdowns and high product prices. The Group is currently setting new sales records and increasing its market share in this segment. It made a significant contribution to improving the Group’s profitability.

BYD’s revenue per vehicle could increase from 2,400 to 5,600 to 7,900 Chinese Yuan from the first to the second quarter of 2022, which corresponds to a significant volume expansion. Increased sales figures, higher sales prices and stable lithium prices contributed to this. This development may continue in the second half of 2022.

In the first half of 2022, NEV sales grew by 314.9% to 641,350 vehicles. In August 2022 alone, BYD wants to produce about 300,000 vehicles, which already corresponds to 3.6 million units added in one year.

In the mobile phone segment, demand was weak, but gains were made as BYD cut costs and adjusted its product mix.

Chip development for intelligent driving BYD also develops intelligent driving chips. Chinese media reports that it could be on the market by the end of 2022. The development is being done through a subsidiary of BYD Semiconductor, where the company has created a development team. The chip division was established in October 2004. BYD owns 72.3% of the shares.

The company formed a joint venture with Momenta last year (2021) and entered into joint ventures with Baidu (NASDAQ:) (NYSE:BA) and Nvidia (NASDAQ:) (NASDAQ:Nvidia). This is what it takes to develop the operation of the mind.

Item Shares of BYD (F:): 2 good news warrants a price increase of 11.4%. appeared first Motley Fool Germany.

Christof Welzel does not own any of the shares mentioned. The Motley Fool owns stocks and recommends Baidu, Berkshire Hathaway (NYSE:) (B stock), BYD, and Nvidia and recommends the following options: short January 2023 $200 put Berkshire Hathaway (B stock), short January 2023 $265 call on Berkshire Hathaway ( B stock) and Long January 2023 $200 call on Berkshire Hathaway (B stock).

Motley Fool Germany 2022

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