Matters:
Byd Company Limited(002594) recently announced to stop the production of fuel vehicles. In the future, Byd Company Limited(002594) vehicles will focus on pure electric and plug-in hybrid vehicles. On the same day, the company announced that the production and sales of new energy vehicles exceeded 100000 in March 2022, a record high.
Ping An View:
Byd Company Limited(002594) green dream never changes its original intention, bid farewell to pure fuel oil and water to qucheng. At present, the monthly sales of Byd Company Limited(002594) pure electric vehicles and plug-in hybrid vehicles have exceeded 50000 units, and will compete with Tesla for the top 1 global new energy vehicle enterprise in 2022 As early as 2008, the company put forward three green dreams. It has been building cars for nearly 20 years. The original intention of the green dream has not wavered. It has continuously accumulated the core technology of the electric vehicle industry chain, achieved double breakthroughs in the scale effect and brand upgrading of new energy vehicles, and took the lead in overtaking in corners.
The industry is ripe – the hybrid motor car is at the critical point of explosion. The driving force has shifted from policy to market, and the penetration rate of new energy vehicles has entered an accelerated period. By the end of the first quarter of 2022, the proportion of ownership is still less than 3%. At present, China’s hybrid cars have a small base, large space and strong scene adaptability, and are at the critical point of explosive growth. Hybrid cars will start a comprehensive replacement of pure fuel.
Own strength – profound technology accumulation + comprehensive brand matrix Byd Company Limited(002594) holds three technical trumps, namely blade battery, DM-I hybrid, E3 0 pure electric platform, the company’s hybrid car product matrix and pure electric car have successfully entered the hinterland of joint venture fuel vehicles. Dynasty network, Ocean network and comprehensive new energy vehicle price belt layout form a trend of attack across the board. Han has successfully realized the “waist rise” of Byd Company Limited(002594) brand, E3 0 platform new seals and sea lions are ready to go. Opening up the supply chain of electric vehicles and realizing the neutrality of accessories will help reduce the cost of their own single car, feed R & D, carry out technical iteration and form a positive cycle.
Accelerating the penetration of hybrid cars is conducive to the realization of “waist rise” of brands. The time has come for some models or brands of traditional car enterprises to realize full range hybrid. The consumption structure of new energy vehicles is transitioning from the initial “dumbbell type” to “spindle type”. The base sector of pure fuel is large and there is huge space to replace. Traditional automobile enterprises and new energy vehicle brands urgently need to achieve “waist rise” and break into the mainstream price belt of household vehicles Byd Company Limited(002594) has taken the lead in proving that Chinese brands can overtake in the curve of scale and brand in the new energy vehicle track. At present, other pure electric brands of traditional car enterprises are still in the exploration period of market segmentation. Accelerating the penetration of hybrid cars is conducive to faster brand upward attack. The price gap between pure fuel vehicles and plug-in hybrid vehicles of the same model is too large, which is not conducive to the formation of a clear brand awareness. The time has come for some models or brands of traditional car enterprises to realize full range hybrid.
Investment suggestion: we are optimistic about the leading automobile enterprises with mainstream price, pure electric vehicle brand and new generation hybrid technology. With the large number of new generation hybrid models listed, the “waist rise” of new energy brand is expected to accelerate. We strongly recommend Great Wall Motor Company Limited(601633) (2333. HK), Geely automobile (0175. HK) and ideal automobile 2015 HK), etc.
Risk tips: 1) the supply chain of core components such as chips and batteries is in short supply; 2) The price rise of raw materials exceeded expectations; 3) The epidemic situation in China affects the production, logistics and purchase of new energy vehicles. 4) Traditional car enterprises failed to upgrade the brand of new energy vehicles.
