[ad_1]
Source: Caijing.comAuthor: a Hideyoshi2020-12-04 18:24
To boost investor confidence, China Evergrande has increased its holdings in Evergrande Motors for two consecutive days.
On 2 and 3 December, China Evergrande increased its holdings in Evergrande Motors for two consecutive days, cumulatively increasing its holdings by 47.76 million shares, for a total amount of 1.3 billion Hong Kong dollars, and its holding ratio increased to 74.03%. A person close to Evergrande Motor told Caijing.com it will not increase its holdings today (Dec 4).
Yesterday, Evergrande Motor’s closing price was Hong Kong dollars 28.4 per share (approximately RMB 23.93), an increase of 4.03%, and the total market value exceeded 250 billion. Hong Kong dollars (approximately RMB 210.675 billion).
Experts believe China Evergrande’s rise in its holdings in Evergrande Motors is also a determination to build a car for its location. In addition, Hengchi will be mass-produced next year or will face more competitive pressure.
Share price increase
Evergrande’s share price has risen for two consecutive days, a cumulative 14% increase.
On December 2, Evergrande Motor’s growth rate reached 11%. Yesterday, Evergrande Motor’s share price climbed more than 9% to Hong Kong dollars 30 per share during the intraday session, reaching a three-month high. However, Evergrande Motor’s share price fell slightly today, the closing price at Hong Kong dollars 26.5 per share, down 6.69%.
The increase in Evergrande Motor’s share price in the first two days is mainly due to the increase in holdings by major shareholders. According to the latest information on Hong Kong Stock Exchange stock disclosure, China Evergrande has increased its holdings in Evergrande Motors for two consecutive days.
On December 2, China Evergrande increased its holdings in Evergrande Motor by approximately 22.33 million shares, for a total of HK $ 638 million. On December 3, China Evergrande again increased its holdings in Evergrande Motors, a two-day joint venture that increased its holdings by 47.76 million shares, for a total cost of approximately HK $ 1.3 billion.
At the same time, the general mood of the new energy vehicle industry is improving, which also benefits Evergrande.
Bai Yiyang, research department of CMB International, said that the domestic A-share market has experienced positive sentiment in the automotive sector, particularly in the new energy automotive sector. According to the National Securities New Energy Vehicle Index, today’s increase was 1.24%. New energy vehicle stocks like BYD, CATL, Geely, Inovance Technology have been showing an upward trend in recent times.
Evergrande Automobile’s current market value is five times that of March 27, 2020.
Some analysts have said that Evergrande Motors’ share price is in depression, currently only one seventeenth that of Tesla. In the areas of product planning and production capacity layout, Evergrande Motors has fully valued Tesla and has strong resistance in product development and production base planning. He believes Evergrande’s stock price has more room for growth.
On December 3, Eastern US time, Tesla’s closing price was $ 593.38 per share (approximately RMB 3,886.76) and the total market value was approximately $ 562.465 billion (approximately RMB 3,684.258 billion). .
It can boost investor confidence
The analysts cited above believe Evergrande’s share buyback by major shareholders this time around may also boost investor confidence. And as the Hengchi brand continues to mass produce next year, the share price is expected to rise further.
Bai Yiyang believes that China Evergrande’s increase in holdings is also a determination to build a voting machine. New energy vehicles are already the core business of the China Evergrande group.
A few days ago, the National Development and Reform Commission asked to investigate investments in new energy vehicles, check the local investment situation of some new energy vehicle companies since 2017, and name Baoneng Automobile and Evergrande Automobile. Affected by the news, Evergrande’s stock price plummeted at that time and the decline once expanded to 10%.
When the product is not in mass production, Evergrande plans to build ten intelligent manufacturing bases in Shanghai, Guangzhou and other places. Total planned production will be 1 million vehicles per year by 2025 and the total planned production capacity will be 5 million vehicles by 2035. / year. Bai Yiyang stressed that auto companies should be cautious about capacity expansion and be wary of the cyclical characteristics of the auto industry. Judging by recent actions, Evergrande intends to send a signal to the market to show its determination to build a car. “First, the news of the Evergrande parts factory in Shanghai has been updated; the second is the Hengchi 1 real automobile exhibition; and the other is Evergrande Group. Continue to increase holdings.”
Previously, Evergrande Automobile’s two main production bases in Shanghai and Guangzhou also started trial production.
On November 12, Evergrande Automobile announced that the two main production bases in Shanghai and Guangzhou have fully started trial production and commissioning. Both bases are built in accordance with Industry 4.0 standards and can produce 1 vehicle in 1 minute after full production.
To support Hengchi’s vehicle production, Evergrande plans to build a new project with an annual output of 100,000 sets of parts.
On November 25, the Shanghai public enterprises and institutions environmental information disclosure platform showed Evergrande Hengchi New Energy Automobile will build a new energy vehicle body parts construction project, which will mainly produce large-scale exterior body panels scale and key molded parts, bodywork assemblies and other automobiles Annual production capacity is 100,000 sets of components.
The mass production plan of the Hengchi brand is also underway.
Hengchi’s mass production accelerates and faces increased competitive pressure
A few days ago, the first model of the Hengchi Hengchi 1 brand was exhibited, a step closer to mass production.
The aforementioned relevant person revealed to Caijing.com Automobile that the Hengchi 1 is positioned as a D-class pure electric luxury sedan. According to the Hengchi series naming rules, the car should be named “Hengchi 1 SS” and the fascia of price is 250,000-500,000.
The specific name of the models listed on the Hengchi brand is composed of “Hengchi + number + two English letters”. Between the two English letters, the first English letter represents the grade of the model and “L”, “S” and “F” represent luxury models, ultra-luxury models and top models respectively. Prices are below 250,000 and 250,000 yuan for 500,000 yuan, 500,000 yuan and more.
The second English letter represents the three categories of models. Use “S” for car models, “X” for SUV models and “M” for MPV models.
Zhou Lijun, an analyst at the Auto Research Institute, said Hengchi’s naming rule is currently the “traditional naming method of car manufacturers.” For example, brands like Lynk & Co, WEY, and Audi also use “numbers + letters” to name their models.
However, as Evergrande’s mass-produced models have not yet launched, Bai Yiyang said he remains cautious and optimistic about Evergrande’s prospects.
On October 27, when Haitong Securities, Evergrande’s listing advisory agency, revealed the progress of the first phase of the advisory work, it said that development of Evergrande’s new energy vehicle project has not been completed for now. and is not expected to reach mass production status during the review phase of the Science and Technology Innovation Board. .
Specific reminders include mainly: the risk of approval of production and access to the product has not yet been obtained; the development cycle of the new car is long, the cost is high and the result is uncertain; the company develops more models globally and it is expected that investments in large-scale research and development will be required in the future; The model launch plan is lower than expected risk, the new “Hengchi” brand market expansion risk.
The Hengchi brand will be launched into mass production next year and will face increased competitive pressure.
In 2021, in addition to the Hengchi brand, competitors such as Tesla’s second model Y domestic model, FREE Lantu Motors’ first midsize and large pure electric SUV and Weilai’s fourth product will reach mass production and delivery. New automotive manufacturing forces such as Tesla, NIO and Ideal have already gained a certain amount of market build-up by anticipating their deployment into the high-end electric vehicle market.
Taking Tesla as an example, the cumulative sales of the Tesla Model 3 as of October 1 this year reached 92,000, ranking # 1 in new energy vehicle sales. And with the Model Y delivered nationwide next year, Tesla is expected to see further increases.
Among traditional automakers, the Aeon GAC series initially opened its doors, with cumulative sales of over 30,000 vehicles on November 1 this year. Lantu Motors is backed by Dongfeng Motors and has clear advantages in the market and technology. Furthermore, SAIC Zhiji Automobile is accelerating its march, and FAW and Changan are also preparing high-end electric brands. Luxury brands such as BMW, Mercedes-Benz and Audi are also accelerating their take-up in the luxury electric vehicle market.
This presents a challenge for the Hengchi brand.
Source link
