14. September 2021 | 10:38 CET
BYD, EuroSports Global, NIO - The shooting stars of electric mobility
According to a study conducted by McKinsey & Company in early 2020, 51% of Germans surveyed seriously considered an electric car the last time they purchased one. Still, only 3% of them decided to buy one. 36% cited uncertainties about battery reliability and lifespan, as well as area-wide charging options, as reasons for not buying. By the end of 2020, 589,752 electrically powered passenger cars had been registered in Germany, according to the Federal Motor Transport Authority: 309,083 pure electric cars, 279,861 plug-in hybrid cars and 808 cars with fuel cells. Therefore, the targeted one million was missed by a wide margin, but 2021 has been a very dynamic year so far. The number of non-combustion cars has risen by more than 140% so far. We present three interesting e-players.
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ISIN: BYD CO. LTD H YC 1 | CNE100000296 , EuroSports Global | SG2G55000001 , NIO INC.A S.ADR DL-_00025 | US62914V1061
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
BYD - Best positioned as a one-stop shop
When we look at electric mobility, there is no avoiding the pioneer "Build your Dreams" (BYD). Protected for several years by the investment company Berkshire Hathaway, BYD is growing with great strides into the future. Its good positioning is due not least to its broad positioning. For years, the Chinese Company has been a one-stop shop for all important components.
Starting as a battery manufacturer, BYD put its own cars on the road a few years later and demonstrated a high level of technological competence in the configuration. Those who can produce 100% themselves in times of interrupted supply chains have the edge over the competition. Thanks to integrated production sites, manufacturing also takes place at reasonable prices. A clear advantage over other manufacturers is the Company's chips and good equipment features and ranges, because the argument of range and flexibility often thwarts the purchase of an electric vehicle.
The BYD share, which was already doing well, has repeatedly hit its head on the EUR 30 mark. If this line cannot be overcome, a chart-technical setback to the catch-up line at around EUR 25 or below is imminent, as it already went down to EUR 15 once in May.
EuroSports Global Ltd. - Rollout begins in the fall
Fast and agile e-motorcycles will soon be available from EuroSports Global Ltd. from Singapore. These are two-wheeled vehicles in the most modern edition, and the first models are to be officially unveiled in the third quarter. The holding company EuroSports Global owns 75% of the subsidiary Scorpio Electric Ltd. founded in 2021, which is still 25% in the hands of associated companies through various financing steps.
In addition to the new sector, EuroSport Holding has operated a functioning trade in luxury sports cars and other high-end items for years. The new segment of design runabouts, therefore, fits very well into the program. One wants to offer sustainable driving fun with electric drive for its clientele; the overpopulated cities of Asia will welcome this step to improve the air. While e-motorcycles are already firmly integrated into local transport in China, the market shares in Europe and the USA are still in single digits. For EuroSports Global, this offers an outstanding opportunity to score points over combustion models with favorable prices and convincing functionality.
After strong rises, the share is correcting somewhat. However, the management is using this opportunity for targeted share buybacks. Almost 6 million shares have already been acquired at prices of around SGD 0.20. The market capitalization is currently SGD 54.3 million, and the share is traded not only in Singapore but also in Frankfurt. With the upcoming market entry, the stock should be in high demand.
NIO - Big Announcements at the IAA
NIO has announced its all-electric sedans, unveiled in China earlier this year, for the first time in Germany and Europe. In China, it has already succeeded in positioning itself in the high-priced SUV market. Of course, the Company is still some way from seriously getting in the way of premium manufacturers, but the price difference of up to 35% is enough to make one or two consumers curious.
The technical data speaks for itself: The NIO ET7 puts a whopping 653 hp on the road with its all-wheel drive, and it has a range of up to 1,000 kilometers when the largest battery with 150 kWh is installed. In its own country, NIO is already pulling up its own charging network and scoring points with its innovative battery swap concept. NIO confirmed at the IAA that the ET7 will be the first model to be launched in Germany in late 2022; in Norway, the Company already sells the ES8 model.
However, investors might be somewhat deterred by the high share price: The market capitalization is currently just under USD 42 billion for rolling 12-month revenues of USD 4 billion. That puts NIO at 10 times its annual revenue. In recent weeks, the stock has corrected by 30%, but BYD still has a price-to-sales ratio of just 3.
The companies featured here all serve the emerging electric mobility market. Build Your Dreams (BYD) is a well-known standard stock. NIO is very dynamic and strives to innovate in the market. As a significant shareholder of motorcycle manufacturer Scorpio, EuroSports Global Holding is an interesting admixture from the booming sector.