Breaking News: Company 603156 Diversifies and Invests in Storage Chip Giant!
The production and sales of new energy vehicles are thriving, with low PE, low PB, and undervalued high-performing stocks leading the charge.
Company Overview
On April 25, Yangyuan Beverage (603156.SH) announced an investment plan through its controlled entity, Wuhu Wenmingquan Hong Investment Management Partnership (Limited Partnership), to inject 1.6 billion yuan into Yangtze Memory Technologies Co., Ltd. (also known as Chang Kong Group). This investment accounts for over 90% of the company’s projected net profit for 2024.
The funds will be utilized for Chang Kong Group’s business operations and development, which includes business expansion, capital expenditures, and general working capital. Following this capital injection, Wenmingquan Investment will become the eighth largest shareholder of Chang Kong Group.
Chang Kong Group boasts a registered capital exceeding 100 billion yuan and fully owns Yangtze Memory Technologies Co., Ltd., a leader in the domestic 3D NAND market. The company provides various products and solutions, including 3D NAND flash memory wafers and consumer-grade solid-state drives, widely used across mobile communications, consumer electronics, and data centers.
Yangyuan Beverage stated that this investment aligns with its strategic development goals and will facilitate the exploration of equity investment business models, ultimately enhancing the company’s overall performance and providing greater returns for shareholders.
Financial Performance
Yangyuan Beverage specializes in the research, development, production, and sales of plant-based protein beverages made from walnut kernels. It is a leading player in the domestic plant protein beverage sector, with core products including Six Walnuts. The company achieved a net profit of 1.722 billion yuan in 2024, marking a growth of 17.35%. However, in the first quarter of this year, net profit fell to 642 million yuan, a decrease of 26.95%.
Government Guidelines for Electric Vehicles
Recently, ten government departments, including the Ministry of Transportation and the National Development and Reform Commission, jointly issued the Guiding Opinions on Promoting the Integration of Transportation and Energy Development. This document outlines the goal of having electric power account for 10% of the transportation sector by 2027 and establishing a clean, low-carbon energy consumption system by 2035, where pure electric vehicles will become the mainstream in new vehicle sales.
The guidelines emphasize promoting new energy and clean energy transport equipment, phasing out high-energy-consumption and high-emission vehicles, and enhancing the supply capability of green fuels for transportation.
Strong Performance in New Energy Vehicle Sales
According to data from the China Association of Automobile Manufacturers (CAAM), the production and sales of new energy vehicles in China reached 12.888 million and 12.866 million units respectively in 2024, signifying year-on-year increases of 34.4% and 35.5%, maintaining China’s leading position globally for the tenth consecutive year. In the first quarter of this year alone, production and sales totaled 3.182 million and 3.075 million units, demonstrating growth rates of 50.4% and 47.1%.
Notably, pure electric vehicle sales increased by 47.7%, while plug-in hybrid vehicle sales rose by 46.1%.
The CAAM forecasts total car sales in 2025 to reach 32.9 million, a 4.7% increase year-on-year, with new energy vehicle sales projected at 16 million, up 24.4%.
Financial Growth Among Industry Leaders
As the 2024 annual report disclosures approach completion, a review of the performance of new energy vehicle companies indicates that nearly half of the sector’s listed firms reported year-on-year net profit growth. By April 25, among A-shares with a market capitalization exceeding 10 billion yuan, six companies saw their net profit double in 2024, including Changying Precision, Shuanglin Technology, InnoLux, and others.
Leading new energy vehicle manufacturer BYD reported a net profit of 40.254 billion yuan in 2024, increasing by 34% and reaching a historic high. BYD held a 33.2% market share in 2024, ranking as the top car manufacturer in China and globally for new energy vehicle sales.
The leading battery manufacturer, CATL, achieved a net profit of 50.745 billion yuan, up 15.01% from the previous year, marking a consistent growth trend over six years.
As of April 25, the stock prices of several new energy vehicle companies that reported significant growth were down by more than 20% from their 2024 peaks, with a rolling PE ratio below 30 and a PB ratio under 2. Among these, Yun Aluminum Co. received the most bullish ratings from institutions, benefiting from a comprehensive green industry chain.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should exercise caution and bear all risks associated with their investment decisions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/yuan-beverage-invests-in-storage-chip-giant-as-chinas-new-energy-vehicle-sales-surge/
