|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||11.28 - 11.45|
|52 Week Range||9.27 - 14.97|
|Beta (5Y Monthly)||1.04|
|PE Ratio (TTM)||40.74|
|Forward Dividend & Yield||0.06 (0.52%)|
|Ex-Dividend Date||Jun 09, 2019|
|1y Target Est||N/A|
(Bloomberg Opinion) -- For factories to reopen, people to get back to work and the coronavirus to stop spreading, China needs tens of millions of face masks each day. And yet the country’s sprawling bureaucracy is sending out mixed messages about its ability to provide them. The repercussions have been felt even in Hong Kong, where throngs of panicked shoppers cleared the shelves of masks and, more perplexingly, toilet paper last week.The world’s biggest mask producer is facing a severe shortage. Even running at full capacity, China can make only 20 million a day, nowhere close to meeting the needs of the 776 million who are slowly returning to work. As for prized surgical and N95 masks (which provide even more coverage), China can produce only about 2.2 million and 600,000 daily. The country has roughly 12 million medical professionals.In the last week of January, China had to purchase more than 56 million masks from overseas, the government said. Apple supplier Hon Hai Precision Industry Co. took matters into its own hands when it started to make masks for employees at its flagship factory in Shenzhen. Once again, China’s bureaucrats have proven their incompetence, starting with the government of Hubei province, whose slow response accelerated the viral spread in the first place.Even under lockdown, Hubei of all provinces shouldn’t be this short of protective medical gear. Xiantao, a provincial city there, is a major industrial hub for the non-woven products used in surgical masks. But last week, local officials told producers that unless their goods have been cleared for sale within China, factories can’t reopen until Feb. 14. This has created a social uproar. Many of these masks aren’t cleared for sale in the mainland because they’re exported. These businesses often lack domestic licenses precisely for this reason. Within days, the provincial government had to reverse course, because the proposed regulation would have shut downroughly half of Xiantao’s production capacity. In the manufacturing hub of Guangdong, meanwhile, officials went into overdrive, encouraging local businesses to switch to mask production by offering generous subsidies. Companies that purchased production lines and got online by Feb. 7 received as much as 80% in rebates from the government; those meeting a Feb. 20 deadline can have up to half of their equipment costs paid for. It's no surprise that companies are now making masks, including automakers such as BYD Co. and Guangzhou Automobile Group Co. But this shift has stoked its own form of panic. When China's fourth-largest tissue-paper brand, Guangdong-based C&S Paper Co., said it purchased five production lines with a daily capacity of about 350,000 masks, speculation was rife on social media about possible disruption to the paper-goods supply chain. This helps explain why Hong Kong had a toilet-paper run last week: The likes of C&S might just be too busy making surgical masks.Judging by how well the stock market is doing, it seems global investors have learned to forgive China. Many have argued that, of all countries, China with its centralized command system can weather this epidemic better than others.The reality is a lot murkier. We have one province so bogged down by licensing issues that its much-needed factories are lying fallow; another whose overly generous subsidies could be providing the wrong incentives and inadvertently stoking consumer panic. As it turns out, China’s bureaucracy is a lot less efficient than we imagined. Don’t be surprised if we see a diaper run, too. Even those manufacturers have switched to making masks. To contact the author of this story: Shuli Ren at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Germany and France set out a blueprint for a giant battery factory, advancing Europe’s 5 billion euro ($5.5 billion) bid to rival the capacity of Tesla Inc. China to supply the key part for electric vehicles.The announcement at Germany’s Economy and Energy Ministry units underscores determination by European Union nations to catch up with Asian competitors that dominate battery making. Battery cells and add-on electronic devices and software make up as much as half the value of EVs.The facility at Groupe PSA-Opel’s site in Kaiserslautern involves Total SA’s Saft Groupe in a plant that will be named the Automotive Cell Co. The plant will cost about 2 billion euros and will complement a French factory in the Hauts de France region.Germany and France “want to build the best and most sustainable batteries” in Europe, Economy and Energy Minister Peter Altmaier said in a statement from Berlin on Friday. “I’m convinced that battery cells made in Kaiserslautern will set new standards in their CO2 footprint.”Together, the factories will cost about 5 billion euros add production capacity to 48 gigawatt-hours of batteries.Backed by the European Commission, France and Germany dangled subsidies to win over sketics within the auto industry about investing in the technology. While German companies such as Volkswagen AG and BMW AG dominate car manufacturing in Europe, they’ve allowed Asian companies and Tesla to take the lead on making batteries.Contemporary Amperex Technology Co., or CATL, and BYD Co. Ltd. of China are among the leaders in making lithium-ion battery cells, while Tesla has invested in a string of “gigafactories” to supply its luxury electric cars.The European governments also aim to incorporate tighter emission standards in production and recycling stipulations, which may create hurdles for Asian products. European battery cells “won’t be comparable with cheap Chinese products,” Altmaier said last year.The Kaiserslautern factory will be up and running by 2024 and employ 2000 people, Opel’s management board head Michael Lohscheller said. The German and French cell production sites may serve 10% to 15% of demand in Europe, said Altmaier. Germany alone is targeting 7 million to 10 million electric cars on its roads by 2030.Some 13.8 million jobs representing 6.1% of the workforce may be linked to auto manufacturing in the EU. The market for battery cells may be worth as much as 250 billion euros by mid-decade, the EU Commission said.Still, the competition from Asia is likely to be tough.CATL has gained a foothold in Germany in a factory in Thueringia state with a plant with 16 gigawatt-hours of capacity. In 2018, the Chinese company said it aims to be close to the market for for production sites of BMW AG, Volkswagen AG and Daimler AG.LG Chem Ltd is building a battery cell gigafactory in Poland, close to Eastern German car production sites. Tesla Inc. said in November that it will open an electric car production site on the outskirts of Berlin, and Northvolt AB is building a plant in Sweden.(Fixes reference in third paragraph to show factory is at a site, not near headquarters.)To contact the reporter on this story: Brian Parkin in Berlin at firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, Lars PaulssonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Beijing’s announcement of several measures to support the anticipated stock-market bloodbath did little to help most sectors.
The so-called Tesla of China reportedly is near a new funding deal after warning of inadequate cash for operational needs in 2020.
(Bloomberg) -- Shares of electric-vehicle makers including Tesla Inc. and Warren Buffett-backed BYD Co. jumped after the government signaled it won’t continue reducing subsidies for the industry at the same pace this year.Miao Wei, the minister for industry and information technology, told an audience in Beijing on Saturday EV-purchase subsidies won’t be cut July 1, like they were on that date last year. Tesla, which is just starting to deliver locally built cars to customers, saw its stock climb above $500 for the first time as optimism about China combined with a bullish analyst report.“Please rest assured: There won’t be a further cut on July 1 this year,” Miao said in a speech at an industry forum. The audience, which included representatives from major automakers, applauded his statement.Though the minister later clarified his comments, investors and the industry interpreted his remarks as good news for EV manufacturers that were hit by subsidy reductions last year. Sales of new-energy vehicles have dropped for six straight months in China since the government scaled back handouts in July.A few hours after his speech, the minister’s amended statement was aired on China National Radio and the forum’s organizers asked reporters to refer to those comments.“In order to stabilize market expectations, and ensure the industry’s sustained development, subsidies on new-energy vehicles will stay relatively stable this year, and they won’t be scaled back significantly,” the radio station quoted the minister as saying.Shares of BYD and competitor BAIC BluePark New Energy Technology Co. surged by their daily trading limit of 10% Shenzhen and Shanghai, respectively.Tesla rose as much as 5.3% to $503.49 shortly after the start of regular trading in New York. An analyst at Oppenheimer & Co. raised his price target to a street high $612.Chinese electric-SUV maker NIO Inc., which also trades in the U.S., surged as much as 6% to $3.72.The minister didn’t say whether the subsidies will be fully gone by 2021, which is what the government has stated before. Wan Gang, a vice chairman of China’s national advisory body for policy making and an EV pioneer, told the forum that regulators should refrain from making subsidy changes this year so that carmakers can prepare for next year when they will be completely phased out.China, which began subsidizing EV purchases in 2009 to promote the industry, has been gradually reducing handouts in the past few years to encourage automakers focus on innovating and competing on their own.(Updates with Tesla stock milestone in second paragraph)To contact Bloomberg News staff for this story: Tian Ying in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Craig Trudell, Kevin MillerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the...
(Bloomberg) -- Tesla Inc. cut the starting price of its China-built Model 3 sedans by 9%, as it steps up efforts to lure customers in the world’s biggest electric-vehicle market after opening a factory on the outskirts of Shanghai.The price was lowered to 323,800 yuan ($46,500) from 355,800 yuan. After subsidies from the Chinese government, prices start from 299,050 yuan, Tesla’s website showed. That puts the cars closer to some produced by domestic EV makers, such as Xpeng Motor’s latest P7 sedan, which starts at 240,000 yuan. NIO Inc.’s electrified SUVs start from as high as 358,000 yuan.California-based Tesla, which handed over the first of its Chinese-made cars to 15 employees on Dec. 30, will start delivering local models to the public on Jan. 7, it said on its official WeChat account. That’s just one year after breaking ground at the Shanghai plant, Tesla’s first factory outside the U.S.“This price cut shows Tesla’s confidence in cost control and determination in rapidly expanding its market share,” said Yale Zhang, managing director of Autoforesight, a Shanghai-based consultancy.Elon Musk’s company is also lowering the cost of optional extras, from body color to high-performance wheels, according to a statement. Home-charging services aren’t included, and cost an extra 8,000 yuan. Tesla is already assembling more than 1,000 cars a week at its China facility and plans to double that rate over the year, according to Song Gang, the manufacturing director of the plant.Musk has said weekly production of 3,000 cars in Shanghai is a target at some point.Tesla plans to increase local sourcing to 100% in Shanghai by the end of the year, from about 30% now, Song said. That should help lower costs as Tesla and other ambitious EV makers face a challenging market in China, where auto sales have been slowing.Last month, people familiar with the matter said localization would help Tesla cut prices by 20% or more in 2020. The company has been exempted from a 10% purchase tax for its locally built sedans, posing more of a threat to the likes of NIO, Xpeng and BYD Co.(Updates with details on Chinese carmaker models in second paragraph and adds chart)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Will Davies, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
BEIJING/SHANGHAI, Dec 10 (Reuters) - Auto sales in China fell for a 17th consecutive month in November, with the number of new energy vehicles (NEVs) sold contracting for a fifth month in a row, data from its biggest auto industry association showed on Tuesday. Total auto sales in the world's biggest auto market fell 3.6% from the same month a year earlier, the China Association of Automobile Manufacturers (CAAM) said. Car sales in the country contracted last year for the first time since the 1990s against a backdrop of slowing economic growth and a crippling Sino-U.S. trade war.
High activity level in the United States and expansion efforts in Canadian and European markets are expected to have boosted Copart's (CPRT) revenues in the fiscal first quarter.
BEIJING/SHANGHAI, Nov 11 (Reuters) - China's auto industry executives met with government officials over the weekend to discuss ways to promote higher car sales in rural areas, sources familiar with the matter said. The country's car manufacturers are grappling with the pressures of falling sales in the world's largest car market and are seeking new policies. A senior official at the China Association of Automobile Manufacturers (CAAM), Zeng Guang, confirmed to Reuters that the meeting had been organised in Beijing by the association's magazine Auto Review.
TOKYO/SHANGHAI (Reuters) - Chinese electric car maker BYD Co Ltd and Japan's Toyota Motor Corp said on Thursday they planned to set up a joint venture to design and develop battery electric cars as they ramp up efforts to produce zero emissions vehicles. The two companies said in a statement that they would each invest 50% of the capital needed to establish the company, which will be set up next year and be based in China. Widely considered a late comer in embracing battery EVs, compared with rivals including Nissan , Toyota had flagged in June that it aimed to get half of its global sales from EVs, including gasoline hybrids, by 2025, five years ahead of schedule.
TOKYO/SHANGHAI, Nov 7 (Reuters) - Chinese electric car maker BYD Co Ltd and Japan's Toyota Motor Corp said on Thursday they planned to set up a joint venture to design and develop battery electric cars as they ramp up efforts to produce zero emissions vehicles. The two companies said in a statement that they would each invest 50% of the capital needed to establish the company, which will be set up next year and be based in China. Widely considered a late comer in embracing battery EVs, compared with rivals including Nissan, Toyota had flagged in June that it aimed to get half of its global sales from EVs, including gasoline hybrids, by 2025, five years ahead of schedule.
Chinese electric car maker BYD Co Ltd said on Tuesday it expected full-year net profit to fall by as much as 43%, as sales of new energy vehicles in the world's biggest auto market plunged following a cut in government subsidies. The Shenzhen-based company, which is backed by U.S. investor Warren Buffett and whose products include battery electric and plug-in hybrid vehicles, posted net profit of 119.72 million yuan ($16.95 million) in the third quarter, down 88.6% from 1.05 billion yuan a year earlier. It said 2019 profit would be between 1.58 billion yuan and 1.77 billion yuan, down from 2.78 billion yuan a year earlier.
Tesla and BYD are in a race to dominate the global EV market and, with Musk and Buffett backing their respective companies, this billionaire battle won’t slow down any time soon
A look at the shareholders of BYD Company Limited (HKG:1211) can tell us which group is most powerful. Insiders often...
(Bloomberg) -- Shares of Chinese electric-vehicle makers and suppliers fell after a worse-than-expected quarterly loss for NIO Inc., the country’s answer to Tesla Inc., exacerbated concerns that a bubble in the world’s largest EV market may be bursting.BAIC Motor Corp., which BloombergNEF says brought in more than $4 billion in EV revenue last year, dropped 1% in Hong Kong, while BYD Co. closed down 4.1%, its biggest loss in over a month. Wuxi Lead Intelligent Equipment Co. retreated 4.5% in Shenzhen. NIO plunged 20% to a record low of $2.17 in New York on Tuesday after announcing its results and thousands of job cuts.The dire situation has prompted NIO, which is backed by technology giant Tencent Holdings Ltd., to raise $200 million from founder William Li and a Tencent affiliate, and to plan the spin off some businesses. The company’s U.S.-listed shares are down more than 80% from their peak following last year’s IPO.“People are wondering whether the company can continue to survive,” said Jason Chen, an analyst from Blue Lotus Capital Advisors. Bernstein analyst Robin Zhu struck a similar tone with a report titled “Tick Tock, Tick Tock,” estimating that NIO has only a few weeks of liquidity left.The issues specific to Shanghai-based NIO include cost overruns and major recalls.The company said Wednesday it has rescheduled its earnings conference call to 8 a.m. New York time after canceling the original one planned for Tuesday.More broadly, the automaker’s struggles lend credence to mounting concerns that China’s state-sponsored support of the industry inflated a bubble that’s poised to pop. The nation’s sales of EVs and “new-energy” vehicles fell for a second straight month in August as the government scaled back subsidies. China accounts for half of the world’s EV sales.“The latest industry sales and pricing data have not shown improvement, prompting us to fear the anticipated recovery in industry demand in September and 4Q may prove more modest than expected,” JPMorgan analysts Ryan Brinkman and Rebecca Wen wrote in a note, where they also withdrew their price target on NIO.NIO’s second-quarter net losses increased 83% from a year earlier to 3.29 billion yuan ($462 million), according to a statement. The deficit was worse than the 2.6 billion yuan average estimate of two analysts surveyed by Bloomberg, and it was the company’s second-largest based on available data dating back to 2017.NIO has accumulated about $6 billion in losses since it was founded by Li, who is also the chief executive officer, in 2014. Fire risks led to a mass callback of nearly 5,000 vehicles in June, a significant portion of the 17,550 units NIO had sold as of the end of May.Li said in the statement that a target has been set to reduce global headcount to 7,800 by the end of the third quarter, from more than 9,900 in January. There will be additional restructuring and some non-core businesses will be spun off by the end of the year, he said, without elaborating.A Tencent affiliate and Li agreed to buy $200 million of convertible notes through a private placement that’s expected to close before the end of the month, NIO has said. The company canceled its earnings conference call without explanation, a move Chen called “very strange.”Though revenue surged more than 3,000% from a year earlier, that was a time when the company was just getting started to sell cars. It fell 7.5% from the first quarter.NIO delivered 11% fewer vehicles compared with the first quarter, but it forecast the number will rebound to between 4,200 and 4,400 units in the third quarter. Third-quarter revenue will rise as much as 10% from the previous three months, the company said.NIO previously scrapped plans for a manufacturing plant in Shanghai after the government decided to provide support to Tesla, which aims to start production in China this year -- another challenge for Li’s company. Annual capacity at the Tesla facility could eventually top 1 million vehicles, chief executive Elon Musk has said.(Updates share-price moves.)\--With assistance from Courtney Dentch.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, ;Young-Sam Cho at firstname.lastname@example.org, Will Davies, Kevin MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.It took Tesla Inc. about 15 years to rack up $5 billion in losses. The company some regarded as China’s Tesla did it in four.And the bleeding continues. Shanghai-based NIO Inc. is poised to report Tuesday that it lost another 2.6 billion yuan ($369 million) — around $4 million a day — during the second quarter, according to the average of two analysts’ estimates. That would bring accumulated losses at the company, which is backed by technology giant Tencent Holdings Ltd., to about $5.7 billion since William Li founded the carmaker in 2014.Cost overruns, weak sales, and major recalls have led NIO to plunge about 74% since its market value hit a record $11.9 billion about a year ago. More broadly, the company’s reversal of fortune illustrates why concerns are mounting that China created an electric-vehicle bubble that may be about to burst.“This year and the next, there’s going to be a lot of card-shuffling for these EV startups,” said Siyi Mi, an analyst at BloombergNEF. “Before, venture capital chased after them, but it’s not the case any more.”NIO’s U.S.-listed shares fell as much as 4.6% to $2.90 shortly after the open of regular trading Monday in New York.Total EV sales in China, where half of the world’s electric cars are sold, fell for the first time in July after the government scaled back subsidies. Deliveries dropped again in in August, raising doubts that one of the final respites of strength in China’s auto market — which has fallen 14 out of the past 15 months — is wavering.China has gradually scaled back subsidies for new-energy vehicles — all-electrics, fuel-cell autos and plug-in hybrids — since 2017 to help the industry stand on its own two feet and avoid a bubble. That’s undermined growth, prompting the likes of top Chinese electric-carmaker BYD Co. to warn recently that earnings will wane.At NIO, pressure is building for the company to raise more funds. The carmaker is seeking to reduce its workforce by 14% to 7,500 by the end of the month. Incidents involving batteries catching fire or spewing smoke forced NIO to recall about 4,800 vehicles — more than 20% of all the cars it’s ever sold. Second-quarter deliveries dropped from the preceding three-month period.The company also scrapped plans for a manufacturing plant in Shanghai after the government opted to provide financial support to Tesla. Instead, NIO farms out production of its ES6 and ES8 cars to Anhui Jianghuai Automobile Group Co.While Tencent and Li each plowed $100 million into NIO this month, the capital-intensive nature of the auto industry means that “this much money won’t last long,” said Bill Russo, founder and CEO at Automobility Ltd., a Shanghai-based auto advisory firm.Li has played down his company’s challenges, saying in an interview in June that NIO’s stock rout was “no big deal” and that investors needed to understand that making new cars costs money.But money is in short supply for the carmaker, which is now counting on receiving as much as 10 billion yuan in funding from an investment firm backed by the Beijing city government.Another looming challenge for NIO is Tesla, which plans to start production in China later this year, allowing the U.S. company to cut prices of its vehicles sold in the country.“NIO didn’t position itself in the right place,” said Yale Zhang, founder and CEO of the consultancy AutoForesight. “I’m not optimistic about its future in the long run.”(Updates with U.S. shares trading in fifth paragraph)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, ;Craig Trudell at email@example.com, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.In 2015, the shares of Indonesia’s largest cab company were soaring, while its revenue reached a record high. Then came Uber, followed by Grab and Gojek, Southeast Asia’s answer to the revolutionary ride-hailing app.Competition from the technology titans wiped out $1.7 billion, or almost 80%, of PT Blue Bird’s market value from a peak. Revenue plunged 23% in three years and the latest quarterly earnings fell to a record low. But rather than give up, the 54-year-old cab operator is now seeking to turn the tide. Leading the effort is Noni Purnomo, who succeeded her father in May as president.Four months into her new job at the Jakarta-based company, Purnomo is banking on technology to transform the flagging business her late grandmother started in 1965. Her plans include focusing on electric vehicles made by Tesla Inc. and BYD Co. to cut fleet ownership costs and improve efficiency using data.“We decided to take a huge leap,” Purnomo, 47, said at her office in Jakarta last week. “With this leap, we hope we can address our shortcomings” and catch up with rivals.While sustainability is her immediate priority, Purnomo’s goal eventually is to beat the ride-hailing giants that have upended what was once an industry renowned for its steady revenue and dominated by small owners and families like Purnomo’s. She’s up against Singapore-based Grab, the regional giant that bought Uber Technologies Inc.’s Southeast Asian operations last year.Purnomo’s toughest challenge yet may be convincing investors that her company is here to stay and thrive. Blue Bird’s shares traded at 2,580 rupiah (18 cents) in Jakarta on Monday. They reached an all-time high of 12,500 rupiah in January 2015, months after Blue Bird raised a modest $200 million from an initial public offering.Purnomo has already added about two dozen EVs to Blue Bird’s almost 30,000-strong fleet of cabs that operate in the cities of Java, Sumatra, Bali, Lombok and Batam. Eventually, the plan is to have 2,000 of the zero-emission taxis from Tesla and Chinese maker BYD, she said.EVs may give her company an edge as initial data have shown encouraging signs, she said. The vehicles cost 40% less to operate than fossil fuel-powered cars, and generate 30% more revenue, according to her.Besides, her rivals can’t replicate this model easily, Purnomo said. Their asset-light model would require drivers to bear the financing costs of an expensive EV, a risky proposition for most individuals, she said. A representative for Grab didn’t respond to request for comments.“We have a different business model and the company can take the risk instead of the individual,” she said.Charging StationsThe lack of charging infrastructure in the Southeast Asian country could pose a hurdle. Right now, Blue Bird has facilities at its main office in Jakarta, while there’s one available at the city’s airport. President Joko Widodo‘s government is trying to ramp up charging stations in malls and other public places to help boost sales of EVs.Read about Indonesia’s plan to form electric-car hub Blue Bird will also invest in the internet of things -- an emerging technology that links machines and gadgets and likely to get a boost with the roll out of 5G wireless networks. IoT will help Blue Bird collect data and improve operational efficiency and help implement dynamic pricing, a variable fare model popular with the likes of Uber, Lyft Inc. and Grab.Purnomo said the company now has the technical capability to fight back and the financial resources to challenge them, without elaborating on how she plans to raise capital. On the other hand, Grab has money to burn. Valued at $14 billion, it is planning to raise more than $4.5 billion in its latest funding round.“Gojek and Grab’s low fares have caused a major churn for these taxi companies,” said Kenny Liew, an analyst at Fitch Solutions. “The taxi companies need to look at new business models, even partnerships with ride-hailing players, to stay relevant.”Rival TiesBlue Bird already has an alliance with Gojek, operated by PT Aplikasi Karya Anak Bangsa, that allows its fleet to be available on the Gojek app. While it opens up the customer base, it also has the disadvantage of lower margins, Liew said. Gojek offers both motorcycle and cab rides.A representative for Gojek said the company has also started a pilot project for electric motorcycles and cars in Indonesia. If the vehicles can save costs, that will help drivers, she said in an email.Purnomo started working at Blue Bird in the mid-1990s. Groomed by her father for a key role in the family business, the engineering graduate held positions in maintenance, customer service and sales before taking a break to finish her master’s in business administration at the University of San Francisco.Competition brought about by ride-hailing companies in the traditional taxi business is “nearing equilibrium,” Purnomo said, adding some customers and even drivers who previously left Blue Bird to try rivals have returned.While investors have pummeled Blue Bird’s shares, analysts have been more optimistic. All six tracked by Bloomberg recommend buying it.“The worst appears to be behind them,” said Richard Suherman, an analyst at PT Sinarmas Sekuritas. “Their transformation, including their plan to build up a better technology platform and dynamic pricing, should help their competitiveness and profitability.”\--With assistance from Tassia Sipahutar.To contact the reporters on this story: Fathiya Dahrul in Jakarta at firstname.lastname@example.org;Harry Suhartono in Jakarta at email@example.comTo contact the editors responsible for this story: Sam Nagarajan at firstname.lastname@example.org, ;Young-Sam Cho at email@example.com, ;Thomas Kutty Abraham at firstname.lastname@example.org, Jodi SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.