To The Moon

$BYD COMPANY(01211)$ Recent News: Price Cuts & Margin Pressure

• BYD recently implemented steep EV price reductions—10% to over 30% on at least 22 models—including its low-end Seagull (discounted ~20%) and Dynasty Qin DM‑i (~34%) to HKD CN¥63,800

• Industry figures confirm the EV price war has driven net margins down to below 4% in China, and regulators have intervened—mandating auto makers including BYD to commit to paying suppliers within 60 days

Technical Context: BYD Weekly Chart

• The weekly pattern resembles a classic head and shoulders structure—a common reversal pattern.

• Should price confirm a break below the neckline, it may imply a potential slowdown or reversal in the prior uptrend—especially given cohesion with weaker earnings or structural margin pressure.

• Expected earnings on 27 Aug 2025.

Key Implication

• When price breaks below the neckline after forming the right shoulder, it often signals a reversal from an uptrend to a downtrend.

Why It Matters

• It suggests buying momentum is weakening, and sellers are gaining control.

• Often used by traders to anticipate potential trend shifts and manage risk.

How to Use DLCs for Short-Term Trading

Bearish view: A break and hold below the neckline may support the use of Short DLCs ( $BYD 5xShortSG270331 ( $BYD 5xShortSG270331(5C3W.SI)$ )$ ) to gain leveraged exposure to potential downward momentum.

Bullish view: If price holds above the neckline and performs a clean rebound, Long DLCs (e.g. $BYD 5xLongSG251216 ( $BYD 5xLongSG251216(VLSW.SI)$ ) ( can be considered to trade the potential stabilization or bounce.

As always, DLCs are leveraged and intended for short-term use only—risk management and position sizing are essential.

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Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.