BYD suddenly issued an announcement at noon yesterday that the company received the "Letter on Proposing to Repurchase the Company's A Shares" on the same day, and the proposer was Wang Chuanfu, the actual controller, chairman and president of the company. Wang Chuanfu proposed that BYD would use its own funds of 200 million yuan to repurchase part of the company's A shares through centralized bidding transactions.
Seeing this, everyone was actually pleasantly surprised and seemed a little disappointed. What is more surprising is that BYD's A-share share price has indeed suffered a heavy fall recently, from 240 yuan to below 200 yuan, in the short term, the ** range is slightly larger, but at this time, ushered in the company's repurchase, in any case, this is a bit of a rainbow after the storm.
It is more disappointing that the company with an annual profit of more than 10 billion yuan has only taken out 200 million yuan to repurchase, according to the volume of BYD, it is almost the same to take out 2 billion yuan to repurchase, which may have some impact on the stock price, and this volume of 200 million yuan is not a short-term repurchase, but will be completed in the next 12 months, which weakens the positive force of this repurchase plan.
However, one of the more interesting points in this announcement is that the repurchased shares will be used for employee stock ownership plans, Equity incentive or reduction of registered capital, etc., this is interesting, everyone generally has a view on the repurchase of employee stock ownership plans and equity incentives, that such a repurchase does not have much significance, the key is not to increase shareholders' equity, only the cancellation of the reduction of registered capital is good, this time BYD also mentioned or reduce the registered capital, but in the end which way will be used to deal with the repurchased shares is not clear.
BYD is undoubtedly the global champion of new energy vehicle sales, especially this year to accelerate the layout of overseas markets, and overseas sales have exceeded 200,000 units, in this case, BYD's stock price is increasingly moving downward, especially the current limited repurchase of 200 million yuan, what do you think?
I feel that this is more or less the recession of the entire industry, which has led to a decline in the market's confidence in new energy vehicle manufacturers, especially the continuous sharp decline in lithium carbonate, which has made people see the overproduction of the new energy industry, so it is natural to question the future profit prospects of the company, I think at this time we have to see the changes after the future industry competition, there is a high probability that there are not many companies left in this industry, and the influence of the giants will only expand and not decrease, we should give more confidence to BYD's company, and the key point in the future is whether BYD will make a breakthrough in the field of intelligence。
There is also BYD should maintain more of the company's image in the world, the best way is to expand the company's popularity in the world by maintaining the stock price, before Nvidia's stock price continued to reach new highs, so that people realized the value of this chip research and development company, because your profits and sales champion is really reflected in the stock price, this advertising effect will bring about continued growth in sales, will show a good cycle effect, perhaps someone has seen the continuous rise of BYD's stock price, and there is a high probability that the company is strong, and there is also a new energy vehicle to buy BYD, so that the company's brand promotion effect will naturally expand, the global sales supremacy will be proudly consolidated.
Disclaimer: The content in this article is for reference only and does not constitute any operational advice or tips