BYD stock | Stock Price Prediction 2024 – 2050 (Detail Analysis)
A Chinese multinational corporation, BYD Co., Ltd. has been in the spotlight recently for its meteoric rise in the EV and battery technology industries. The world is moving towards more environmentally friendly transportation options, and BYD is well positioned to be a part of it.
We will examine BYD business strategy, projected stock price, financial results, and potential growth drivers in this research.
What is BYD Ord Shs A SHE: 002594?
BYD Co., Ltd. trades as 002594 on the Shenzhen Stock Exchange. Established in 1995, the firm first made rechargeable batteries. BYD eventually made electric cars, solar panels, and energy storage technologies. BYD means Build Your Dreams, reflecting the company’s lofty renewable energy and transportation aspirations.
In 2008, Warren Buffett Berkshire Hathaway bought 10% of BYD. This investment improved BYD reputation and finances.
BYD Stock Price Prediction 2024, 2025, 2030, 2040, 2050
| Year | Bull Case | Base Case | Bear Case |
| 2024 | CNY 500 600 | CNY 400 500 | CNY 300 400 |
| 2025 | CNY 700 800 | CNY 600 700 | CNY 500 600 |
| 2030 | CNY 1,500 2,000 | CNY 1,200 1,500 | CNY 1,000 1,200 |
| 2040 | CNY 5,000 6,000 | CNY 4,000 5,000 | CNY 3,000 4,000 |
| 2050 | CNY 15,000 20,000 | CNY 12,000 15,000 | CNY 10,000 12,000 |
Is BYD stock good to buy? (bull case & bear case)
Bull Case
- BYD, a renowned EV producer in China, is expanding abroad.
- BYD vertical integration approach, which includes battery and component manufacture in-house, provides them a cost and supply chain edge.
- The Chinese government’s focus on renewable energy and sustainable transportation helps BYD thrive.
- BYD research and development has improved battery technology and EV performance, which may help them remain ahead.
Bear Case
- BYD competes with traditional automakers and EV startups in China and internationally.
- Government EV and renewable energy subsidies might affect BYD operations.
- Trade and geopolitical issues between China and other nations might impact BYD worldwide growth.
- Lithium and cobalt prices might affect BYD profitability.
Key Details About BYD
- Headquarters: Shenzhen, Guangdong, China
- CEO: Wang Chuanfu
- Number of Employees: Approximately 229,000 (as of 2021)
- Market Capitalization: CNY 758.6 billion (as of March 2023)
- Business Segments: Electric Vehicles, Batteries, Solar Panels, Energy Storage Systems
BYD FINANCIAL (Balance Sheet)
| (in millions CNY) | 2022 | 2021 | 2020 |
| Revenue | 353,245 | 216,142 | 153,469 |
| Gross Profit | 55,801 | 32,821 | 26,383 |
| Net Income | 16,624 | 3,045 | 4,234 |
| Total Assets | 536,310 | 407,287 | 286,059 |
| Total Liabilities | 335,597 | 247,311 | 185,672 |
| Total Equity | 200,713 | 159,976 | 100,387 |
KEY Performance Indicator
| KPI | 2022 | 2021 | 2020 |
| EV Sales Volume | 1,863,494 | 603,783 | 426,972 |
| Battery Capacity Installed | 51.71 GWh | 32.83 GWh | 22.11 GWh |
| Gross Margin | 15.8% | 15.2% | 17.2% |
| Net Profit Margin | 4.7% | 1.4% | 2.8% |
| Return on Equity (ROE) | 9.2% | 2.1% | 4.4% |
Comparison with listed peers
| Company | Market Cap (2023) | Revenue (2022) | P/S Ratio (2023) |
| BYD Co., Ltd. | CNY 758.6 billion | CNY 353.2 billion | 2.1 |
| Tesla, Inc. | $615.5 billion | $81.5 billion | 7.6 |
| NIO Inc. | $23.7 billion | $5.7 billion | 4.2 |
| Xpeng Inc. | $11.6 billion | $3.4 billion | 3.4 |
| Li Auto Inc. | $23.5 billion | $4.1 billion | 5.7 |
Positive & Negative Factors to Invest in BYD
Positive Factors
- BYD competes with traditional automakers and EV startups in China and internationally.
- Government EV and renewable energy subsidies might affect BYD operations.
- Trade and geopolitical issues between China and other nations might impact BYD worldwide growth.
- Lithium and cobalt prices might affect BYD profitability.
Negative Factors
- BYD competes with Chinese and international automakers and EV startups.
- Government EV and renewable energy subsidies might affect BYD operations.
- Trade wars and geopolitical conflicts might hinder BYD worldwide development.
- Battery raw material pricing volatility might hurt BYD profitability.
Conclusion
With a strong position in China and a rising worldwide presence, BYD Co., Ltd. is a key leader in electric car and battery technologies. Vertical integration, technology, and government backing boost the company’s long-term success. When assessing BYD stock, investors should examine severe competition, regulatory changes, geopolitical issues, and raw material price volatility.
Before making any investment, it is important to study, evaluate objectives and risk tolerance, and contact a financial expert.
FAQs
What products does BYD manufacture?
BYD produces solar panels, electric cars, batteries, and methods for storing energy.
Who are BYD main competitors in the EV market?
A few of BYD key rivals include Li Auto, Xpeng, Tesla, and NIO.
Does BYD have any notable investors?
In 2008, Warren Buffett Berkshire Hathaway did, in fact, purchase a 10% investment in BYD.
What is BYD market capitalization?
The market valuation of BYD was over CNY 758.6 billion in March 2023.
What is BYD strategy for growth?
BYD plans to increase its market share in electric vehicles (EVs) throughout the world, improve the efficiency and performance of its batteries and EVs via R&D investments, and keep its cost advantages and supply chain under control through vertical integration.
