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Analysis of BYD stock (1211.HK)
01 Nov 2021 (537 views)  

BYD is an electric car manufacturer based in Shenzhen, China. They have a lead in battery technology. They have produced electric vehicles for many years.

In my view, BYD is able to produce EV at a competitive price and compete effectively against Tesla. 

I read a report that they have signed a big contact to provide battery for Tesla. This will be an important source of their future profit.  

I analyzed the financial figures for BYD.

Their historical PE ratio is 214 and their forward PE ratio is 98. The profit for the next financial year is expected to increase by 118%.
The dividend yield is 0.06%. 
The current share price of HK$287.80 is 11% below the peak price of $324.60
The total debt to equiry is 48%, which is acceptable. 

I consider the price of BYD to be too high. I have decided not to invest in BYD at this price. I will be interested when the price drop by 35% (i.e. HK$186), giving a forward PE ratio of 64. 

It is not likely to reach this low level.

Tan Kin Lian

Note - this is a personal opinion. I am not giving investment advice about this stock.


 


Analysis of BYD stock (1211.HK)
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BYD is an electric car manufacturer based in Shenzhen, China. They have a lead in battery technology. They have produced electric vehicles for many years.

In my view, BYD is able to produce EV at a competitive price and compete effectively against Tesla. 

I read a report that they have signed a big contact to provide battery for Tesla. This will be an important source of their future profit.  

I analyzed the financial figures for BYD.

Their historical PE ratio is 214 and their forward PE ratio is 98. The profit for the next financial year is expected to increase by 118%.
The dividend yield is 0.06%. 
The current share price of HK$287.80 is 11% below the peak price of $324.60
The total debt to equiry is 48%, which is acceptable. 

I consider the price of BYD to be too high. I have decided not to invest in BYD at this price. I will be interested when the price drop by 35% (i.e. HK$186), giving a forward PE ratio of 64. 

It is not likely to reach this low level.

Tan Kin Lian

Note - this is a personal opinion. I am not giving investment advice about this stock.