$NIO Inc (NIO.US)$ (Turn) First, the trend of electrificatio...

First, the trend of electrification of electric vehicles has only just begun, and now it has just reached a definite critical point. What I've talked about before is all about expectations. This year is the beginning of a real major trend in industrialization.

This industry should be said to be very clear when looking at 5, 10, or more years. The global penetration rate of electric vehicles is probably only 5 or 6 points. In the future, I think 50 points or even 100 points is just a matter of time.

You look expensive now, and if you consider that space is actually not expensive, after all, major industrial trends have been established now.

In the past, stocks that speculated on new energy vehicles did rise almost as much. People took a break at the beginning. The reason for taking a break was because in the past, they were driven by policies, and generally wave by wave.

The main reason is that the sales volume is too good, and the policy needs to be accelerated. After a period of time, sales volume was poor, and the company's performance was also relatively poor, so we pulled back again, waited until the adjustments were completed, and then started a new round.

Second, in the past, speculating on electric cars was usually the best target first, but in this round, they were all good companies. In the past, storytelling companies didn't rise. Why?

Because now everyone is more professional, from an industrial point of view, leading companies with technical advantages and cost advantages. Looking at this kind of company for 5 or 10 years, its certainty is quite clear. This kind of asset is definitely also a core asset, and it is a relatively scarce asset.

Pharmaceuticals and liquor are all core assets. I don't think leading electric vehicle companies are currently offering that many core assets; it is possible that this direction will become more and more clear in the future.

Third, I don't think the valuation is that exaggerated.

Currently, the predicted profit for 2021 is between 40-50 times, and some are still slightly cheaper. Of course, there are also some tables that are more expensive to look at.

However, we think that in the short term, the fundamentals of 2021 may further exceed expectations, because according to short-term observations by some leading companies, the first quarter data all exceeded expectations, and the valuation to core assets ratio was not very high.

The other one is that it takes a long time. If you look at it, many stocks are probably only a few times better, or a very cheap valuation. Of course, this requires being a friend of time.