SEHK:1211

Stock Analysis Report

Executive Summary

BYD Company Limited, together with its subsidiaries, engages in the rechargeable battery and photovoltaic, handset components and assembly, and automobile businesses worldwide.

Rewards

Earnings are forecast to grow 17.9% per year

Earnings grew by 0.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Limited growth with questionable track record.


Similar Companies

Share Price & News

How has BYD's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1211 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1211

2.3%

HK Auto

0.9%

HK Market


1 Year Return

-32.0%

1211

-0.9%

HK Auto

-1.5%

HK Market

Return vs Industry: 1211 underperformed the Hong Kong Auto industry which returned -0.9% over the past year.

Return vs Market: 1211 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1211IndustryMarket
7 Day0%2.3%0.9%
30 Day-5.8%-3.0%-4.2%
90 Day-11.4%5.6%-0.2%
1 Year-31.6%-32.0%2.7%-0.9%2.0%-1.5%
3 Year-13.5%-14.6%8.9%-0.4%17.3%5.4%
5 Year-2.6%-4.6%12.8%-2.1%17.1%-2.2%

Price Volatility Vs. Market

How volatile is BYD's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BYD undervalued compared to its fair value and its price relative to the market?

35.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1211 (HK$37.15) is trading above our estimate of fair value (HK$2.7)

Significantly Below Fair Value: 1211 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1211 is poor value based on its PE Ratio (35.1x) compared to the Auto industry average (11.1x).

PE vs Market: 1211 is poor value based on its PE Ratio (35.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1211 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 1211 is overvalued based on its PB Ratio (1.6x) compared to the HK Auto industry average (0.7x).


Next Steps

Future Growth

How is BYD forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1211's forecast earnings growth (17.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1211's earnings (17.9% per year) are forecast to grow faster than the Hong Kong market (11.9% per year).

High Growth Earnings: 1211's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1211's revenue (8.7% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 1211's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1211's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has BYD performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1211 has a large one-off gain of CN¥1.3B impacting its September 30 2019 financial results.

Growing Profit Margin: 1211's current net profit margins (2.1%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 1211's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: 1211's earnings growth over the past year (0.9%) is below its 5-year average (16% per year).

Earnings vs Industry: 1211 earnings growth over the past year (0.9%) exceeded the Auto industry -11.2%.


Return on Equity

High ROE: 1211's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BYD's financial position?


Financial Position Analysis

Short Term Liabilities: 1211's short term assets (CN¥111.6B) exceed its short term liabilities (CN¥109.1B).

Long Term Liabilities: 1211's short term assets (CN¥111.6B) exceed its long term liabilities (CN¥26.7B).


Debt to Equity History and Analysis

Debt Level: 1211's debt to equity ratio (127.4%) is considered high.

Reducing Debt: 1211's debt to equity ratio has increased from 107.4% to 127.4% over the past 5 years.

Debt Coverage: 1211's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: 1211's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: 1211 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1211's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is BYD's current dividend yield, its reliability and sustainability?

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.2%markettop25%6.3%industryaverage3.1%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: 1211's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1211's dividend (0.61%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.31%).


Stability and Growth of Payments

Stable Dividend: 1211 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1211 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1211 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1211's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of BYD's salary, the management and board of directors tenure and is there insider trading?

11.5yrs

Average board tenure


CEO

Chuan-Fu Wang (53yo)

0yrs

Tenure

CN¥5,667,000

Compensation

Mr. Chuan-Fu Wang serves as the President, Chief Executive Officer and Chairman of BYD Auto Co., Ltd. Mr. Wang serves as the Chairman and Chief Executive Officer of BYD Company Ltd. and served as its Presi ...


CEO Compensation Analysis

Compensation vs Market: Chuan-Fu's total compensation ($USD803.82K) is about average for companies of similar size in the Hong Kong market ($USD787.36K).

Compensation vs Earnings: Chuan-Fu's compensation has been consistent with company performance over the past year.


Board Age and Tenure

11.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 1211's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥33,817,04931 May 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares713,500
Max PriceCN¥47.40

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jing-Sheng Wu (56yo)

    Consultant

    • Tenure: 0.6yrs
  • Chuan-Fu Wang (53yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥5.67m
  • Zhen Wang (43yo)

    Officer of the President’s Office & Supervisor

    • Tenure: 17.5yrs
    • Compensation: CN¥1.26m
  • Yu-bo Lian (55yo)

    Chief Engineer of the Automobile Business

    • Tenure: 0yrs
  • Qian Li (46yo)

    Secretary to the Board

    • Tenure: 0yrs
  • Ya-Lin Zhou (42yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Jie Wang (55yo)

    VP & CEO of Commercial Vehicles Division

    • Tenure: 0yrs

Board Members

  • Zuoquan Xia (56yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥200.00k
  • Chuan-Fu Wang (53yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥5.67m
  • Xiang-Yang Lv (57yo)

    Vice Chairman

    • Tenure: 17.5yrs
    • Compensation: CN¥200.00k
  • Zhen Wang (43yo)

    Officer of the President’s Office & Supervisor

    • Tenure: 17.5yrs
    • Compensation: CN¥1.26m
  • Jun-Qing Dong (85yo)

    Chairman of Supervisors

    • Tenure: 17.4yrs
    • Compensation: CN¥50.00k
  • Tom Zou (46yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥200.00k
  • Yong-Zhao Li (58yo)

    Independent Supervisor

    • Tenure: 11.5yrs
    • Compensation: CN¥50.00k
  • Zi-Dong Wang (61yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥200.00k
  • Ran Zhang (42yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥200.00k
  • Huang Jiang-Feng (39yo)

    Supervisor

    • Tenure: 5.3yrs
    • Compensation: CN¥15.00k

Company Information

BYD Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BYD Company Limited
  • Ticker: 1211
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$122.802b
  • Shares outstanding: 2.73b
  • Website: https://www.byd.com/en/index.html

Number of Employees


Location

  • BYD Company Limited
  • No. 3009, BYD Road
  • Pingshan New District
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BYDD.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 2002
BY6WBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEURJul 2002
BY6DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 2002
0VSOLSE (London Stock Exchange)YesForeign Shares-Foreign ListedGBEURJul 2002
1211SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2002
1211SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2002
BY6ADB (Deutsche Boerse AG)UNSP ADR EACH REPR 2 ORDDEEUROct 2008
BYDD.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 2 ORDUSUSDOct 2008
0HKYLSE (London Stock Exchange)UNSP ADR EACH REPR 2 ORDGBUSDOct 2008
2594XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)Domestic SharesCNCNYJun 2011
2594SZSE (Shenzhen Stock Exchange)Domestic SharesCNCNYJun 2011

Biography

BYD Company Limited, together with its subsidiaries, engages in the rechargeable battery and photovoltaic, handset components and assembly, and automobile businesses worldwide. It operates through three se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 12:43
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.