Hundreds of billions of Xiaomi, BYD at the same time plummeted because of one thing?

category:Finance
 Hundreds of billions of Xiaomi, BYD at the same time plummeted because of one thing?


On December 2, Xiaomi group fell 7.08% to HK $24.30. After the resumption of the straight-line diving, the drop once expanded to 11%.

On the same day, shares of BYD, the leader of new energy vehicles, fell 7.89%; and shares of BYD a fell 3.99%.

BYD announced on December 1 that it has submitted application materials for additional issuance of H shares to the CSRC and plans to issue no more than 20% of the total number of H shares issued. For the use of funds, the announcement said that the net raised funds will be used for: supplementary working capital, repayment of interest bearing debts, R & D investment and general enterprise purposes.

//Why is it necessary to issue additional shares? Are you really short of money? / /

According to Xiaomis Q3 financial report, Xiaomis cash reserves exceed 70 billion yuan, which is not short of money. However, it raised another 4 billion US dollars this time, which is incomprehensible. Industry analysis points out that, in fact, after financing, the fund is still limited. New glory now has hundreds of billions of funds in its hands. If it wants to compete with new glory next year, sufficient fund preparation is essential.

First finance quoted Wen Tianna, the non-executive chairman of Boda Financial Holdings, as saying that issuing bonds and placing shares before the end of the year was regarded by some investors as seizing the opportunity of high stock price and taking advantage of the situation to make large amount financing, which also led to the setback of short-term stock price, which made investors have certain accidents in the sensitive period at the end of the year. For investors who subscribe for convertible bonds, it is estimated that they do not want to bear short-term stock prices Volatility.

Xiaomis share price has risen by more than 127% since the beginning of the year. During this period, its share price reached HK $27.6, a new record high.

Millet has good fundamentals. Huaweis chip supply is under pressure, and Xiaomi quickly seizes the vacant market space. According to the report released by Gartner, Samsung is still the leader in mobile phone sales in the third quarter of this year, with a total of 80.8 million mobile phones sold in the third quarter, an increase of 2.2%. Huaweis sales volume dropped 21% and 51.8 million units, the market share shrank by 2.8% to only 14.1%. In the third place, Xiaomi replaced apple, with sales increasing by 35% to 44.4 million units, and the market share increased by 3.6% to 12.1%.

Xiaomis financial report is also brilliant. As many as 15 financial report data set a record high in a single quarter, far exceeding market expectations. Xiaomi achieved 72.2 billion yuan of revenue in the third quarter, with a year-on-year increase of 34.5%; adjusted net profit of 4.1 billion yuan, with a year-on-year increase of 18.9%; the total income of overseas market was 39.8 billion yuan, with a year-on-year increase of 52.1%.

Some institutions are cautious. According to Citigroups research report, the competition between glory and Xiaomi in the mainland is fierce, and the market and sales channels are overlapped to a great extent.

However, many well-known institutions are optimistic about millet. Recently, CICC, Credit Suisse, Bank of communications, Goldman Sachs and other institutions have upgraded their share price ratings, of which CICC raised the target price of millet to HK $34.

In a statement, S & P global ratings said Xiaomis rights issue and convertible bond issuance were opportunistic and rated it moderately positive.. S & P expects Xiaomis share of the global smartphone market will increase in the next two years with the help of improved partnerships with European operators.

//What will BYD do in the future//

It is worth mentioning that in the evening of December 2, FTSE Chinas A50 Index was newly incorporated into BYD and other stocks. The industry believes that the stock price may be supported.

BYDs revenue and net profit growth in the first three quarters of this year reached 11.94% and 116.83% respectively.

According to the statistics of CAAC, in October 2020, the sales volume of new energy vehicles will reach 160000 units, with a year-on-year increase of 113%. From January to October this year, the cumulative sales volume of new energy vehicles was 870000, a year-on-year decrease of 8%, and the decline rate was narrowed.

At present, Weilai, Xiaopeng automobile and ideal automobile, the three leading enterprises of new automobile manufacturing forces, have all delivered data in November. Three companies delivered record data.

Although on December 1, the shares of the three Chinese stocks listed in the U.S. suffered heavy losses, they were still favored by the institutions.

Weilai, ideality and Xiaopeng, three new forces of Chinas car manufacturing companies listed in the United States, have all released their third quarterly reports. According to the financial report, the gross profit margin of the three companies has turned positive, and the car sales show a substantial growth. Among them, in the third quarter, Weilai delivered 12206 vehicles, a year-on-year increase of 154%, a record high.

However, it is worth noting that with the traditional cars joining the electric vehicle battlefield one after another, the market competition will be more intense.

Guoxin Securities pointed out that it is expected that in 2021, the new automobile manufacturing forces will face the competition of Tesla, Volkswagen MEB and their own brands, and enter a large-scale large-scale period. The whole consumption structure of electric vehicles will shift from Operation Oriented to demand-oriented. It is suggested to pay attention to two opportunities: one is that the new force with high market value will enhance the domestic vehicle valuation center; the other is that the new vehicle manufacturing force with continuous increase in volume will drive the business performance of supporting auto parts plants up.