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 a straight dive, the drop was 11%.

The company has previously announced that it plans to raise about US $4 billion through the issuance of convertible bonds and rights issues, of which US $3.1 billion will be raised through rights issue. The share price is HK $23.70 per share, about 9.4% discount from the closing price of the previous trading day.

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

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

In the afternoon of December 2, Xiaomi group announced a US $4 billion portfolio financing plan. It plans to allocate about 1 billion shares in the way of old before new, which is equivalent to about 4.1% of the total number of shares issued on the announcement date, and about 4.0% of the total number of shares issued after the completion of the subscription. The placement price is HK $23.7.

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%.

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.

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.

For the entire auto sector, Tianfeng Securities believes that this strong beta cycle of the auto sector is expected to continue to 2021, and the growth peak may appear in the first quarter of next year. The superimposed annual report and first quarter report are expected to continue to exceed the expected impact, and are optimistic about the cross year opportunities of the auto sector. In the environment of Pro cycle and pro trend, it is still necessary to grasp the opportunity of main line vehicle and stagflation parts. 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. Source: Wind Information Editor: Yang Bin_ NF4368

For the entire auto sector, Tianfeng Securities believes that this strong beta cycle of the auto sector is expected to continue to 2021, and the growth peak may appear in the first quarter of next year. The superimposed annual report and first quarter report are expected to continue to exceed the expected impact, and are optimistic about the cross year opportunities of the auto sector. In the environment of Pro cycle and pro trend, it is still necessary to grasp the opportunity of main line vehicle and stagflation parts.

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.