In contrast to the ideal, Cyrus’s market value topped the list of new powers

In the past few years, with the rise of the new energy vehicle wave, a new "wealth creation" myth has emerged in the capital markets, but after the return of value sentiment, the myths of various class A shares have gradually been shattered. When everything is calm, a stock has gradually accumulated strength and silently stood on the top of the market value of new forces.

On June 20, Sailis stock price closed at 101.19 yuan/share, with a total market value of 152.775 billion yuan, exceeding the market value of Li Auto Hong Kong stock and becoming the highest market value among new energy vehicle companies.

From Xiaokang to Cyrus Group, this enterprise has completed a historic transformation in the new energy era, and everyone has given credit to Huawei.

In 1986, the predecessor of Sailis Automobile, "Chongqing Baxian Phoenix Electrical Appliance Spring Factory", was established. It started its first entrepreneurial journey with parts, specializing in motorcycles and automobile shock absorbers. Twenty years later, after China entered the World Trade Organization, like Great Wall, Geely and other companies, the company also began to expand into the field of vehicle manufacturing, and established "Dongfeng Yu’an Vehicle Co., Ltd." in cooperation with Dongfeng Group.

It was not until 2007 that Chongqing Xiaokang Automobile Group Co., Ltd. was officially established and renamed Chongqing Xiaokang Industrial Group joint stock company in 2011, which is the predecessor of Cyrus. At this time, the main model of Cyrus is the well-known Dongfeng Xiaokang.

In the next wave of new energy transformation, Xiaokang began to enter the new energy field, releasing its own brand SERES, which symbolizes the Silk Road, and debuted its first model SF5 at CES in the United States, gradually transforming from traditional cars to a new car manufacturing force.

In the extremely invaded new energy market, like the vast majority of new car-making forces, Cyrus has not been able to get out of its own way, nor has it been able to get rid of the shadow of Dongfeng’s well-off society. The attention of the outside world is still stuck on the question of whether Microface can also develop new energy vehicles.

In 2019, Xiaokang and Huawei announced a cooperation, which aroused a thousand waves. In cooperation with Huawei, and Huawei led all the projects, and even the products went directly into Huawei’s supermarket flagship store, embarked on Huawei’s new product launch, and Huawei Yu Chengdong personally stood on the platform.

Under the background of that time, the decoupling of Sino-US trade entered the deep water area, and Huawei, as a sanctioned enterprise, directly carried the banner of China’s national industry. All stocks related to Huawei rose, and class A shares even appeared the concept of Huawei. And when Huawei entered the car, the emotions of the majority of investors almost all emerged into the stock price of well-off shares at one time.

In 2020, when the outside world gradually saw the cooperative relationship between Huawei and Cyrus, and Huawei’s important role in the cooperation between the two, Xiaokang’s share price could no longer be suppressed. From a long-term price of about 7 yuan, it achieved a continuous daily limit to double within a month.

In April 2021, at the Shanghai Auto Show, Huawei brought the first newly built model of the two sides, the M5, which officially opened the road to take off. The continuous word board once again created the myth in the history of class A share. The stock price of Xiaokang is a milestone breakthrough almost every day. 20, 30, 40… At the Shanghai Auto Show, the flagship stock price reached a high of 48 yuan, and in the next two months, it climbed to an unprecedented high of 83.83 yuan.

This is the charm of new energy, but also the blessing of Huawei. Some people say that the well-off has given up their soul and lost themselves in Huawei’s cooperation. But what is hard for the outside world to imagine is that they have not only got the precious opportunity to continue to retain the market, but also gained much more precious market value in the capital markets than the soul.

On August 2, 2022, the company’s name was changed from "Xiaokang Shares" to "Cyrus", officially waving goodbye to the past. To this day, there are still many friends who do not know that Cyrus used to build Dongfeng Xiaokang, but now it has become a large automobile group with five major sub-brands: Blue Electric, Dongfeng Xiaokang, Wenjie, Dongfeng Landscape, and Ruichi.

That is, during this year, the outside investment sentiment began to become rational, and the share price of Cyrus fell from a peak of 90 yuan per share to 25 yuan per share in June 2023.

In the first half of 2022, Sailis received at least nearly 150 institutions for research, and Chairperson Zhang Xinghai personally participated in the conference calls of many institutions for research. In July 2022, Sailis launched a new round of fixed increase, of which 17 institutions at the issue price of 51.98 yuan/share at that time helped Sailis to transfuse more than 7 billion yuan. That month, Sailis’s market value reached the peak of 100 billion.

On June 28, 2022, the share price of Sailis reached a maximum of 90.5 yuan/share, and the market value was as high as 135.479 billion yuan at that time. On June 20, 2023, the share price of Sailis fell to 25.36 yuan/share, which was 70% lower than the highest price.

Corresponding new car-making forces such as NIO, Xiaopeng, and Ideal all entered a phased low point during this period. Although the fall of Cyrus is closely related to the market background, it is also closely related to Huawei. In March 2023, Huawei founder Ren Zhengfei internally reiterated that "Huawei will not build cars" within five years, will not allow the combination of Huawei brand and car trademarks, and ban the logo "Huawei Inquires the World" and "HUAWEI AITO".

Sales of Cyrus also hit a trough at that time. From January to June 2023, the cumulative sales of Cyrus cars were 25,761. Compared with the same period last year, sales fell by 19.7%.

Until September 2023, at Huawei’s autumn new product launch conference, Yu Chengdong made a comeback with a new M7, and at that time, the huge potential of Huawei’s chip to break through the technical blockade once again flocked to Sailis. Sailis’s share price directly rose from 35 yuan per share to 100 yuan per share.

Since the beginning of this year, the big sale of Qinjie M9 has provided impetus for the market value of Sailis to rise. It is understood that since the beginning of this year, the indirect income of Qinjie M9 has brought about 45 billion yuan to Hongmeng Zhixing.

With the delivery of the new M5 and M7 Ultra, and other new models such as the M8 to be launched in 2024, the sales battle between Wenjie and Li Auto has entered a new stage.

It is worth noting that in this year’s Quarter 1, Cyrus’s attributable net profit turned positive, with a year-on-year growth rate of 135.12%. Cyrus, which was once regarded by the outside world as selling cars at a loss, still worked hard and tasted the sweetness.

After the market value surpasses the ideal, waiting for Cyrus will be the test from the end point market.