Hi Folks, welcome back to Investment Income for
Life. Quick update today on a name I've been building up since October 2025-BYD Company Limited,
listed in Hong Kong (1211.HK). The lightning fast charging technology for Blade
2.0 generation batteries is amazing and makes refuelling EV almost similar to
Internal Combustion Engine (“ICE”) vehicles in terms of time. Also, its
operating results such as topline has actually improved tremendously with more
overseas sales.
1.
My Entry Points
I started built up my BYD stocks gradually with an average price of HKD100 per share. When BYD dropped to HKD85.00 on September 3, 2026, I added to it. Then nibbled more when the stock plunged to HKD79.25 recently (September 10, 2026).
I started built up my BYD stocks gradually with an average price of HKD100 per share. When BYD dropped to HKD85.00 on September 3, 2026, I added to it. Then nibbled more when the stock plunged to HKD79.25 recently (September 10, 2026).
2.
First-Half Results — Softer Than Last Year
No sugarcoating it: BYD's first-half results came in weaker year-on-year, with margins squeezed by China's ongoing EV price war. On the surface, not a print that gets investors excited.
No sugarcoating it: BYD's first-half results came in weaker year-on-year, with margins squeezed by China's ongoing EV price war. On the surface, not a print that gets investors excited.
3.
But the Month-to-Month Trend Is Improving
Here's the nuance — breaking it down month-to-month rather than just year-on-year, the trend line is actually improving. Each successive month within the half shows incremental strengthening, suggesting the business is finding its footing again.
Here's the nuance — breaking it down month-to-month rather than just year-on-year, the trend line is actually improving. Each successive month within the half shows incremental strengthening, suggesting the business is finding its footing again.
4.
Why My Sentiment Is Turning More Constructive
Year-on-year numbers are backward-looking; month-to-month trends tell me where the business is heading right now. As the sequential improvement continues, I expect market sentiment to catch up with that underlying trend. The fast charging 2.0 Generation Battery technology will be driving the growth of BYD vehicles back in China and also overseas. Look at the numerous BYD authorised dealers in Singapore and also the sheer number of BYD EVs on our roads.
Year-on-year numbers are backward-looking; month-to-month trends tell me where the business is heading right now. As the sequential improvement continues, I expect market sentiment to catch up with that underlying trend. The fast charging 2.0 Generation Battery technology will be driving the growth of BYD vehicles back in China and also overseas. Look at the numerous BYD authorised dealers in Singapore and also the sheer number of BYD EVs on our roads.
5.
My Take Going Forward
This isn't an all-clear call — EV sector risks
remain in play. But for a position entered at levels I felt were sensible
(HKD85.00 and HKD79.25), I'm comfortable holding through this transition
period. As always, this isn't a buy recommendation — do your own due diligence.
Ok folks, that's all from me today!
No comments:
Post a Comment