Byd's electric-vehicle sales appear below target so far for , but are likely to pick up strongly in the second half. Byd's strength is its Chinese location and product diversity: For , it is currently No.

China's Byd Is A Great Buy - BYD Co., Ltd. (OTCMKTS:BYDDF) | Seeking Alpha

Byd stock looks undervalued on a e PE of just Build Your Dreams NYSE: BYD is a Chinese company based in Shenzhen, China. Its business is based around battery manufacturing, with expansion in recent years into conventional and electric car production.

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They also have energy storage, solar PV , IT and lighting divisions. EV sales, with around 60, sold.

TSLA was number 2 with around 50, sales in I have written previously on Seeking Alpha about Byd, which you can read here , here and here. Since my first article on Byd, things continue to get better. The number of public charging piles grew from 1, to 49, at a CAGR of All three items above have huge benefits for Byd as they are primarily a battery and EV company, with energy storage using lithium ion batteries as a growing new business, much like Tesla.

The graph below shows the massive year on year. Byd has had a typical slow start to sales for , especially given its target for , sales in At the current rate of 16, for the first quarter, yearly sales would extrapolate to 67, Better than , but nowhere near the K target.

I would expect things to speed up otherwise the , target is in trouble. The graph above shows Byd's sales accelerated strongly throughout The company has previously stated that they cannot keep up with demand especially for electric buses and taxis. Also CEO Wang stated just last March in Hong Kong, that he thought Byd would sell , EVs in There was also some negative press in the past few months with some Chinese EV car companies allegedly cheating the subsidy system, however Byd was not involved.

Byd's has huge potential to supply the world with electric taxis and buses. In , BYD aimed "to sell about 15, electric cars to taxi fleets and about 6, electric buses this year, according to Hou Yan, the company's head of sales. Spread over say 20 years to replace the fleet that would be K EV sales per annum to Byd, just to supply the global taxi market. Additionally, the taxi market and ride hailing app companies are seen to have huge potential, an example being Apple's NASDAQ: These companies will compete fiercely to cut running costs.

Whilst these are just my best guesstimates, the purpose is to understand the enormous potential for Byd just in etaxi K per annum and ebus Motor coaches will outpace other types based on increasing private sector use, and on their greater comfort, safety and onboard services. My best guesstimate of a potential In any event, the point is that Byd has a large potential market going forward for both etaxis and ebuses.

This is really just icing on the cake, on top of their regular electric car sales. It is said history often repeats itself. Electric taxis are coming back from the dead. New York City's first taxicab firm was the Electric Carriage and Wagon Company, which started in In London, Walter C.

Bersey designed a fleet of such electric cabs and introduced them to the streets of London in They were soon nicknamed 'Hummingbirds' due to the idiosyncratic humming noise they made. Chinese competitors include BAIC OTC: KNDI , Geely OTCPK: Foreign competitors are Tesla, Nissan OTCPK: NSANY , General Motors NYSE: GM , Mitsubishi OTCPK: MIELY , and other ICE companies.

Most of these have difficulties selling in China, as seen by only Tesla making the top ten, finishing in 8th position in China, so far up until the end of March Byd's top and bottom line have been steadily improving and forecast to improve going forward. In Byd achieved USD Debt levels are manageable at Net profit margins are a bit tight at 3.

Cap Ex CNY 5. The above PEs are based on the Shenzhen listing of Byd which trades at a richer valuation than in Hong Kong or the US.

EPS will have almost tripled from if estimates are met.

Byd's current market cap is HKD Both companies are on a similar pathway with their EV sales ramp up. If you believe in the future of EVs and energy storage, then Byd is exceptionally well positioned to benefit from this. Byd is the global No 1 in EV sales, the global No 1 in ebus sales, and a dominant force growing in energy storage and to a lesser degree solar.

Byd has an astounding potential to grab a huge market share in etaxis and ebuses and is doing that already. Add to that we are quite likely just at the beginning of the EV adoption S curve, as I discussed here. The stock is not expensive trading on a PE of Analyst consensus targets for end are for Byd HK: I view these targets as conservative, and not yet fully factoring in the EV sales ramp up to , in , and around , in Of 22 analysts 9 rate Byd a buy, 5 an outperform, 3 a hold, 3 an underperform, and 2 a sell.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.

The information in this article is general in nature and should not be relied upon as personal financial advise. Please be aware of the risks associated with these stocks. Long Ideas Short Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Picks. China's Byd Is A Great Buy May. Summary Byd's electric-vehicle sales appear below target so far for , but are likely to pick up strongly in the second half.

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The Real Reason Warren Buffett Invested In BYD Auto - Business Insider

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