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Summary
- BYD Co’s Hong Kong-listed shares advanced approximately 2 per cent on Thursday.
- The company has concluded the share sale worth equivalent to $3.86 billion.
- BYD Co shares have registered a massive spike in the last one year with the stock returning more than 400 per cent to-date.
The Hong Kong-listed shares of the Shenzhen-headquartered diversified automaker BYD Co Ltd (HKG: 1211) rose nearly 2 per cent, while the Shenzhen Stock Exchange-floated component (SHE: 002594) jumped a little more than 6 per cent, on Thursday. The Warren Buffett-backed carmaker has sold a portion of Hong Kong-listed equity shares worth around $3.86 billion at a price of HKD 225.
Share sales
The effective share price of HKD 225 was at a discount of 7.8 per cent, as compared to the closing price of HKD 244 as on Wednesday, 20 January. With an upsized sale of equity shares, BYD Co has garnered substantial gains as the stock has rallied more than 400 per cent in the last 12 months.
Berkshire Hathaway Energy Company, previously known as MidAmerican Energy Holdings Company, a controlled corporation of Berkshire Hathaway Inc, directly holds 225 million shares of BYD’s Hong Kong-listed entity, representing 8.25 per cent of BYD Co Ltd.
BYD Co’s massive gain
Surprisingly, the stock of BYD has skyrocketed 640 per cent to-date from the yearly closing low of HKD 33.55 as on 23 March 2020, due to the pandemic-led stock market crash. According to the historical data available with the Hong Kong Stock Exchange, BYD Co shares have surged 423.50 per cent to HKD 248.40 (21 January) from a share price level of HKD 47.45 as on 22 January 2020.
The Shenzhen-listed shares of BYD at present stand with a yearly gain of 297 per cent after zooming as much as 389 per cent from the Covid bottoms.
(Image source: ©Kalkine Group 2020)
BYD’s recent project
BYD Co has been venturing into various areas including battery production, hybrid vehicles, conventional vehicles, as well as commercial vehicles. Recently, the Larbert-headquartered bus building enterprise Alexander Dennis Limited (ADL) partnered with BYD Co to design and assemble the chassis of electric single and double deck buses being jointly developed by ADL and BYD.
The electric buses, being manufactured for the British market, will be manufactured in ADL’s facilities situated in the UK. The production is slated to start in the second half of 2021 marking a significant step in Britain’s effort to minimise the carbon emissions. Separately, BYD has won the tender to produce 1,002 pure electric buses for Bogota, Colombia.
December sales
In December itself, BYD sold 28,841 new energy vehicles including 19,482 battery-powered units and 8,112 plug-in hybrid units. Earlier in December 2019, the company sold 13,099 new energy vehicles. The conventional oil fuel vehicle sales for the reporting month stood at 27,481, slightly lower from 30,080 units sold in the same month of the previous year.
Investors’ attention
Investors have been eyeing prospective opportunities in the green energy sector with the enterprises involved in electric vehicles in focus. At the current market price of HKD 248.40, BYD Co commands a market capitalisation of $92.58 billion. On the other hand, the Elon Musk-controlled automotive giant Tesla Inc (NASDAQ:TSLA) has a market cap of $806.14 billion.
(Source: Refinitiv, Thomson Reuters)
