New Energy Vehicles Promote Good Mechanisms to Fuse Lithium Battery Concept

BYD gains "a ride away"

Yesterday, a Zhongyang line wiped out the haze from the A-share market last week. The stock index regained 2,500 points and lost ground. At the same time, it also stood on the 5-day and 10-day moving averages. The stocks' daily rise and the daily limit were revived. There are 28 non-ST stocks in daily limit in Shanghai and Shenzhen.

The brightest yesterday was undoubtedly the lithium battery sector, which was stimulated by the new energy automobile policy. Yesterday, only one stock of lithium battery plate ran toward the daily limit, and there was a limit of 8 stocks to the close.

Institutional Funds Conceived by BYD Recently, the Ministry of Science and Technology, the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Industry and Information Technology formally issued the “Notice on Further Implementing the Pilot Work of Energy Conservation and New Energy Vehicle Demonstration and Promotion”, requesting pilot cities to actively study new energy vehicles. Exempted from license plate auctions, shakes, restrictions and other restrictions, and introduced parking fees, road tolls and other supportive policies.

Good news for new energy vehicles will benefit the most from the lithium battery segment. Shortly after the opening bell yesterday, the source of power, Yili lithium energy, BYD quickly rushed up to stop. Afterwards, Jiangsu Guotai, Chengfei integration, Desai battery, Xinwangda and Luxiang shares also all reached their daily limit.

Transactional Dragon and Tiger List shows that institutional funds also participated in the hype of the lithium battery sector yesterday, among which BYD, which has both the concept of lithium battery and the concept of new energy vehicles, is the most popular. According to statistics, in the daily limit of BYD on November 1, there were two institutions that had bought nearly 58 million yuan in bulk and were among the top two in the buy list. Although one agency sold 7.54 million yuan, the net purchase amount Still more than 50 million yuan. Yesterday, another institution bought BYD 18.47 million yuan.

Although there were two institutions buying in Xinwangda yesterday, there were also two institutions that sold them at the same time. Desai battery was bought by one institution, two institutions sold, and the institution sold nearly twice as much as the purchase price. Jiangsu Cathay Pacific bought the top five in all its hot money seats; institutional seats swept the top four sellers and sold a total of 59 million yuan.

Lithium-ion battery is a "fried rice"

The three quarterly reports recently released showed that BYD's performance was not satisfactory and its net profit decreased by 85.49% year-on-year. The net profit for the full year is expected to decline by 35% to 65% year-on-year (last year's net profit was 2.523 billion). Why is such a stock that has experienced slumping performances favored by institutional funds?

According to statistics, BYD has not been enthusiastically sought after by the institutions when the SME Board was issued. There are a total of 11 institutions under the net and the success rate under the net is 20.55%. In spite of this, as an authentic Buffett concept stock, the stock was still heavily hyped by the hot money when it went public, and the stock price even pulled two daily limit. However, the plunge in BYD's performance made its share price fall quickly. With the lifting of the ban on shares allocated on the agency's network on September 30, the stock price was even broken.

Founder Securities Wealth Management Center (Hangzhou) Investment Consultant Huang Zhenyu believes that the market's short-term speculation on the theme stocks generally does not focus on performance, but more emphasis on the trend. In fact, on October 24th, BYD has already walked out of the bottom and the moving average system has gradually taken a good step. Coupled with its unique concept of Buffett and the concept of new energy vehicles, it is not surprising that it is sought after by institutional funds. The possibility of participating in speculation.

From the lithium battery concept stock yesterday's performance point of view, after some time ago the bottom of the correction and heavy volume upside, Huang Zhenyu think that this plate still has room to rise. However, the speculation of the concept of lithium batteries has a long history, including Chengfei integration, Desai battery, and Jiangsu Cathay Pacific have all been over-hyped. Therefore, whether it is the time to rise or the duration of the market, this sector is better than new mining. Out of the cultural media section.