"JPMorgan Chase gave Bidiya an Overweight rating in its January report, with a target price of 100 Hong Kong Dollar.
In the February report, Credit Suisse maintained an outperform rating and a target price of 82 Hong Kong Dollar.
CICC maintained its recommendation rating in its June report.
Although some brokerages have recently lowered their target prices, none has issued a sell rating."
She paused and her voice slowed down a bit.
"Moreover, Bidiya is not just a car manufacturer. It also has a battery business, a mobile phone parts business, and a Semiconductors business.
The market is now only focusing on the subsidy reduction and has completely ignored the value of these businesses. When Market Reaction comes over, the stock price will no longer be 40 yuan."
Sun Zhengping was silent for a while, and then asked a more practical question.
"How do you plan to buy it? If it's less than 40 yuan, how much will you buy? How long will it take?"
Chen Xi Take a deep breath and switch to the seventh slide.
"Our plan is to apply for 1 billion yuan of self-owned funds, use 2.5 times leverage, and have a total capital of 2.5 billion yuan to invest in Bidiya.
The investment method is Secondary Market buying, and the buying price range is below 40 yuan."
She brought up a calculation form on the screen, pointed at the data and said:
"Bidiya A-share and H shares have a total share capital of approximately 2.728 billion shares. Calculated at a cost of 40 yuan, 2.5 billion yuan of funds can buy approximately 62.5 million shares, accounting for 2.29% of the total share capital.
Even if we buy it all, there is still a sufficient margin of safety from the 5% disclosure line."
She paused and added:
"The period for building a position is expected to be two to three months. Buy in batches and buy a little every day so as not to disturb the market.
If the stock price continues to fall, we can buy cheaper chips and dilute the cost."
Wu Hongyuan looked at the numbers on the screen and pushed up his glasses.
"2.29% is indeed far away from the 5% disclosure line. This position is within the safety margin."
Shen Jue remained silent. She waited until Chen Xi finished speaking before she spoke.
"Mr. Chen, you just said that Buffett is not for sale.
But have you ever thought about a question - just because Buffett doesn't sell, it doesn't mean he will continue to buy it at 40 yuan.
His cost was 8 Hong Kong Dollar, now it is 50 Hong Kong Dollar, and he has made six times the profit.
He doesn't hold on because he doesn't care about short-term fluctuations. But if we want to open a new position at this position, the logic is different."
The atmosphere in Meeting Room has changed.
The sense of relaxation brought by Shunxin Agriculture just now completely disappeared, replaced by a sharp scrutiny.
Chen Xi nodded.
"Director Shen is right. The holding cost of Buffett is 8 Hong Kong Dollar, and our cost is 40 yuan per person RMB.
This is not the same logic. But I think the value of BYD is far more than 40 yuan.
The impact of subsidy reduction is temporary. After this All Bad News Out, the market will re-price BYD.
The current position of 40 yuan will be the bottom area five years from now."
Shen Jue looked at her, was silent for two seconds, and then nodded slightly. "Continue."
Sun Zhengping was silent for a while, and then asked a more practical question:
"Mr. Chen, I understand everything you just said.
The data is accurate and the logic is clear, but there is a problem - if you invest 2.5 billion in funds, what will you do if the stock price continues to fall?"
Chen Xi said, "We build positions in batches, and the more they fall, the more we buy. We buy one batch below 40 yuan, one batch below 35 yuan, and another batch below 30 yuan.
As long as there is no problem with BYD and Fundamentals, everything that falls will rise again.
Moreover, we use 2.5 times leverage, with 1 billion of our own funds and 1.5 billion of financing.
As long as the guarantee ratio is maintained above the safety line, there will be no risk of liquidation."
Sun Zhengping glanced at Zhao Chen.
Zhao Chen leaned on the back of the chair, holding the teacup, and didn't say a word from beginning to end.
His expression was as calm as a pool of water, as if he was saying - This is Chen Xi's proposal, she will speak and she will answer.
I believe her.
Liu Mingyu looked around. "Directors, if there are no other questions, let's vote now."
Wu Hongyuan flipped through the report in his hand, glanced at the Buffett shareholding form on the screen, and then closed the report.
"I agree."
Xu Yong also nodded.
"The data is sufficient and the logic is clear. I agree."
Shen Jue picked up the tea cup, took a sip, and then put it down.
"Chen Xi, after investing this money, when do you plan to withdraw?"
Chen Xi thought for a while.
"There is no specific exit time. Bidiya is not a staged opportunity like Shunxin Agriculture, it is a long-term opportunity.
Let's hold on and wait. Wait until the penetration rate of New Energy cars rises from less than 2% now to more than 20%, wait until the market gives Bidiya a reasonable valuation, and wait until the stock price reflects its true value.
Then consider quitting at that time. It may be three years, it may be five years, or it may be longer."
Shen Jue looked at her, was silent for two seconds, and then nodded. "I agree."
Vote. Passed unanimously.
Zhao Chen leaned on the back of the chair, holding the teacup, and didn't say a word from beginning to end.
The motion was proposed by Chen Xi, the data was provided by Chen Xi, the questions were asked by the directors, and the answers were given by Chen Xi.
He just raised his hand during the final vote.
After the meeting, Shen Jue walked up to Zhao Chen and whispered, "Chen Xi is growing up very fast."
Zhao Chen nodded.
"She is the general manager of Henglong Capital. She should be the one to do these things."
Shen Jue glanced at him, smiled, turned around and left.
Only Zhao Chen and Chen Xi are left in Meeting Room.
Chen Xi stood in front of Projection Screen, not yet completely relieved from the tension just now.
"Zhao Zong, is there anything wrong with what I just said?" she asked.
Zhao Chen stood up, walked next to her, and looked at the Buffett shareholding form on the screen.
"No. The data is accurate, the logic is clear, and the rhythm is steady. You answered all the directors' questions without leaving any blind spots."
Chen Xi breathed a sigh of relief.
"Then Director Shen asked Buffett if it doesn't sell, does that mean we want to buy it? I almost got stuck."
Zhao Chen smiled.
"But you answered right. You said the cost of Buffett is 8 Hong Kong Dollar, and our cost is 40 yuan. The logic is different.
This sentence is very true, Shen Jue also nodded after hearing this sentence."
Chen Xi thought for a while and suddenly asked. "Zhao Zong, how much do you think Bidiya will fall?"
Zhao Chen looked out the window and was silent for a while.
"I don't know. Maybe 35, maybe 30, maybe lower. But it doesn't matter.
We opened positions in batches, buying more as the price dropped.
You can buy without thinking if it is below 40 yuan. As long as there is no problem with BYD and Fundamentals, anything that falls will rise back up."
He turned around and looked at Chen Xi.
"Bidiya, this investment is different from Shunxin Agriculture. Shunxin Agriculture is a staged opportunity. Once you make money, leave.
Bidiya is a long-term opportunity, so you have to hold on to it. After you build the position, you don't have to keep an eye on it every day. Hold it and wait."
Chen Xi nodded. "I understand."
Zhao Chen walked back to his seat, picked up the cup of cold tea, and took a sip.
"One billion yuan is enough for you to buy for a while. Don't be in a hurry, take your time.
The best buying point will be when Bidiya falls and the market is at its most panicked."
In the afternoon, Chen Xi returned to Trading Room of Henglong Capital and filed the resolution document passed by Board of Directors.
Su Wantang came in with a cup of tea and placed it on her table.
"How does it feel after the proposal is passed?" Su Wantang asked.
Chen Xi nodded. "I am very frightened. One billion is not a small number."
Su Wantang sat down opposite her. "Are you nervous?"
Chen Xi thought for a while. "A little bit. But since your Zhao Zong is here, I'm not afraid."
Su Wantang smiled. "He is here, no one is afraid."
Shan City in July, summer is in full swing.
Chen Xi Turn on the computer and bring up K-line Chart of Bidiya.
On the daily chart, the stock price has dropped from more than 60 yuan at the beginning of the year to 41 yuan, with a downward diagonal line, like a slide without brakes.
She knew that the slide would continue to slide down.
But she is not worried. Because Zhao Chen said that the best time to buy is when the market is most panicked.