(Yicai Global) Sept. 16 -- BYD’s shares soared in Shenzhen again today, smashing yesterday’s record high.
The stock [SHE: 002594] rose by more than 5 percent before closing up 4 percent at CNY105.4 (USD15.60). It climbed by the daily trading limit yesterday. BYD is also listed in Hong Kong and on the Nasdaq.
The surge came after the Chinese automaker confirmed that BYD Electronic International, in which it owns a major stake, will assemble Apple’s new iPad model that was unveiled yesterday, Shanghai Securities News reported.
Besides assembling the new iPad model, BYD Electronic is also expected to become the exclusive assembly supplier for iPod Touch, TF International Securities analyst Ming-Chi Kuo said earlier.
BYD Electronic is set to replace Guangda to become the sole assember of iPod Touch this year and get 10 percent to 20 percent of iPad orders, Kuo said in a research note. The firm is expected to get more assembly orders for iPad Wi-Fi tablet next year if it successfully ships iPads this year. The tablet made up 60 percent to 70 percent of total iPad shipments.
Shares of BYD Electronic [HKG: 0285] jumped nearly 8 percent today before closing down 3.2 percent at HKD39.10 (USD5.05) each.
Kuo pointed out that it could take up to five to six years for the BYD unit to get orders for the iPhone. The time period may become shorter if the assembly technique is downgraded from the Surface Mounted Technology to the less difficult ‘system in package’ technology.
BYD Electronic has been assembling products for various companies, including Huawei Technologies, Guangdong Oppo Mobile Telecommunications, Vivo Communication Technology, Lenovo, Apple, Google, Microsoft, Samsung Electronics and Nokia.
Its first-half operating revenue rose 35 percent to CNY31.4 billion (USD4.6 billion) from a year earlier and net profit jumped more than four-fold to CNY2.5 billion.
Editor: Peter Thomas