BYD shares: numbers! – Financial trends

After high expectations at BYD’s general meeting, the stock markets suffered a drop in share prices. On Friday, the trading week of the Chinese electric car maker’s bonds ended with a loss of 3 percent, and the share price fell to less than 24 euros. This decline marks the end of the price increase witnessed earlier. There is currently a clear trend in BYD shares, which is likely to continue in the coming weeks.

The general meeting failed to provide any significant impetus that could initiate a positive price development. Although the state of China’s economy is considered stable, it lacks the necessary strength to bring about significant growth. With a price-to-earnings (P/E) ratio of 16 for the year, the stock is considered “cheap,” but not enough to be considered a bargain.

Market activation through discount campaigns

BYD stock chart

Markets are particularly affected by the perception that the electricity industry may have reached its limit. BYD and similar companies face credibility problems due to discounted offers. BYD in particular suffered from price cuts that started at the end of December, when Tesla was already working more aggressively in this regard. However, these cuts also mean a loss of potential revenue for BYD.

The ambitious goal of sales for this year of 100 billion euros is unlikely to be achieved; A slight shortfall is expected with a forecast of 97 billion euros. Target sales of about 114 billion euros are planned for next year, although this is also not enough to cause a significant increase in the stock price. The expected profit for this year is 4.3 billion euros and an average of 5.38 billion euros for the next year, which is considered too low to ensure a level of safety. There are concerns that US tariff policies could cause problems for Chinese companies and lead to lower sales and profits – especially in the US and Western markets.

Technical chart reviews and analyst opinions

From a chart perspective, the trading day was unsuccessful for BYD. According to experts, the price would have to exceed the 25 euro mark to initiate a trend change. Short-term expectations of Share in BYD therefore it is considered a challenge. However, there are many analysts who predict a positive development of the stock, which increases expectations and excitement in the market.