Baidu, dynaCERT, BYD – Using the Trump hammer

Baidu – Affordable and broadly diversified

The stock of the Chinese technology company is currently attractively valued for 2025 compared to its peer group. Originally a search engine operator, Baidu has developed into one of the most diverse technology companies in China. It not only operates the largest internet search engine in the country in terms of user numbers and traffic but is also active in the field of autonomous driving with its Apollo platform and in the sector of artificial intelligence with its voice bot, ERNIE.

However, online advertising remains its main business area. Despite China's weakening economy and low consumer confidence, marketing spending has stagnated, and revenues have only increased by 2% to USD 11.4 billion over the last five years. However, the Chinese giant has made strong progress in terms of profitability. Last year, the Company generated net income of USD 3.02 billion, which corresponds to a net margin of 26.5%.

Baidu has liquid funds of USD 18.9 billion, corresponding to around 60% of its market capitalization. The sum of the valuations for the search engines Apollo and ERNIE is, therefore, only USD 11.4 billion. From a chart perspective, Baidu shares broke through the 200-day moving average at USD 93.03 but fell back below it in yesterday's sell-off. There are prominent support lines in the USD 82 range, which could offer an attractive entry opportunity.

dynaCERT – Hydrogen pioneer with outstanding positioning

In recent months, the globally active hydrogen innovator has been able to impress with further follow-up and new orders. The Company, valued at around CAD 70 million, is not tied to any one region; instead, demand comes from all parts of the world, such as Peru, Mexico, Australia, Brazil, and Canada. dynaCERT has received major orders primarily from the oil and gas and mining industries, which recognize the significant added value of the HydraGEN™ units in terms of increased efficiency and reduced emissions after trial operation and are now retrofitting them on a large scale.

dynaCERT's technology enables significant savings in fuel consumption while simultaneously reducing CO2 and nitrogen oxide (NOx) emissions. Vehicles equipped with the HydraGEN™ technology can reduce their fuel consumption by at least 5%. This not only offers economic advantages but also helps to meet stricter environmental standards. The savings in the customer's operating costs mean that the amortization period is less than a year.

Another significant advantage is dynaCERT's ability to generate CO2 credits through VERRA certification. These carbon credits can be sold, providing an additional source of income and further increasing the attractiveness of the technology.

The dynaCERT share has barely been able to reflect the highly positive business performance of the recent past and is currently trading at CAD 0.165. If further orders, including from larger fleet operators, are added to the books, a jump over the horizontal resistance at CAD 0.20 is only a matter of time.

BYD bucks the market trend

When it comes to punitive tariffs, the Chinese market leader in electric vehicles knows its way around. In addition to the US, the European Union is also trying to curb the market dominance of Chinese companies in order to support the domestic auto industry. Although import tariffs on Chinese products in the US are to be raised by a further 10%, yesterday's trading saw the BYD share buck the trend and rise.

The reason for this is obvious: the monthly delivery figures for January rose by 49.2% year-on-year to 300,538 units. Vehicle production also improved further, with growth of as much as 59.5%. Overall, the number of vehicles produced rose to 327,864.

A clear trend emerged in the sales figures for the various vehicle types. Despite the Chinese government's efforts to achieve a virtually emission-free vehicle fleet, demand for hybrid vehicles is growing. Sales of these vehicles rose by 78.7% to 171,069. By contrast, sales of fully electric vehicles grew by "only" 19.1% to 125,733 units.

In line with demand, BYD has adjusted its production capacity. The 125,377 sales are matched by a production of 136,931 fully battery-powered vehicles, an increase of 19.7%.

The Company achieved a particularly strong percentage increase in commercial vehicles. Sales increased from 474 in the same month last year to 4,092, an increase of 763.3%. While slightly fewer buses were sold than 12 months ago, demand and production of specialty vehicles such as forklifts and street sweepers, which BYD offers in fully electric versions, exploded.

The announcement of punitive tariffs hit the stock markets hard on Monday. Baidu is cheaply valued after another dip compared to the industry average. BYD was even able to gain ground due to strong delivery figures. dynaCERT reports increasing demand for its HydraGEN™ technology.