Core Viewpoint - The report from Credit Lyonnais indicates that BYD Electronics' performance in Q3 and Q4 will be impacted by changes in metal casing materials for American clients and a slowdown in BYD automotive shipments. However, strong growth in the metal casing business is expected by 2026, driven by foldable titanium alloy phone casings, while the AI server business will benefit from the shipment of liquid cooling systems and high-voltage direct current modules [1] Group 1 - BYD Electronics is anticipated to experience sustainable growth due to multiple driving factors [1] - The forecast for earnings from 2025 to 2027 has been revised down by 8%, 9%, and 10% respectively [1] - The target price has been adjusted from HKD 52.9 to HKD 48 [1] Group 2 - The metal casing business is expected to see strong growth primarily due to the demand for foldable titanium alloy casings [1] - The AI server business is projected to achieve breakthroughs through the shipment of liquid cooling systems and high-voltage direct current modules [1]

31 October 2025 | 6:57AM CST Equity Research BYD Co. (002594.SZ): 3Q25 First Take: Below expectation on declining sales volume but margin improvement qoq on cost reduction BYD reported below-expected 3Q25 results on both revenue and net profit. Key areas of surprise: Negatives: (1) revenue was -3% yoy/qoq and -11% vs. GSe. With no segment breakdown provided, we believe this is partly due to -2%/-3% yoy/qoq sales volume decline coupled with product mix shifting to lower-priced models in the quarter (e.g. Yua ...

Group 1 - The Hang Seng Index opened down 0.07%, and the Hang Seng Tech Index fell by 0.65%, with Alibaba and Xiaomi Group dropping over 1%, and BYD Company falling over 3% with a net profit of 7.823 billion yuan, a year-on-year decline of 32.6% [1] Group 2 - Guotai Junan Securities suggests that a significant style shift may occur in the Hong Kong stock market in the fourth quarter, with low-growth sectors like Hang Seng Tech potentially becoming relatively favorable [2] - According to China Merchants Securities, the recent adjustments in the Hong Kong stock market have been overly reactive to external shocks, and a rebound is expected as trade tensions ease and incremental policies provide marginal benefits [2] - Galaxy Securities indicates that the overall valuation of the Hong Kong stock market is at a historically high level, predicting wide fluctuations in the market, and recommends focusing on sectors such as precious metals and dividend assets [2] Group 3 - Huatai Securities reports that southbound capital has accumulated inflows exceeding 500 billion HKD since the second half of the year, but the momentum may slow down as the year-end assessment period approaches [3] - The sentiment indicators have returned to neutral, indicating that while there is balanced risk, high-risk investors may gradually build positions, but significant accumulation may still require waiting for better timing [3]

Core Viewpoint - Morgan Stanley analysts, including Tim Hsiao, indicated that the third-quarter performance showed improvement from the low point in the second quarter, aligning with management guidance. Despite the earnings not being particularly strong, the overall results were not surprising given the lowered market expectations [1] Group 1: Performance Analysis - The third-quarter results improved compared to the second quarter, meeting management's expectations [1] - Earnings performance was not outstanding, but the results were in line with reduced market expectations [1] Group 2: Market Sentiment and Stock Price - Investors remain cautious about BYD's market share decline in the domestic market by 2026, but recent negative factors have been absorbed by the market [1] - The stock price is expected to fluctuate around HKD 100 [1] Group 3: Future Outlook - Investors will continue to monitor BYD's overseas expansion progress and await the next major product upgrade in 2026 [1] - Attention is also on whether BYD will implement sales policies to address the 5% increase in the new energy vehicle purchase tax in 2026 [1] - The rating is maintained at overweight, with a target price set at HKD 130 [1]

Market Overview - In September, the overall market price change index was -2.64, with an average transaction price of 154,400 yuan, reflecting a month-on-month increase of 1,131 yuan or 0.74% [1] - The overall market discount change index was -0.5, with an average discount of 27,000 yuan, which increased by 428 yuan or 1.61% month-on-month [1] Segment Analysis - In the SUV market, the price change index was 1.07, with an average transaction price of 174,000 yuan, showing a month-on-month increase of 4,118 yuan or 2.42% [1] - The SUV market discount change index was -1.37, with an average discount of 25,800 yuan, which decreased by 14 yuan or 0.06% month-on-month [1] Company Developments - FAW-Volkswagen celebrated the production of its 30 millionth vehicle in Changchun on October 30 [2] - BYD's pure electric small truck T35 was globally launched at the Tokyo Motor Show, with plans for a 2026 release in Japan at a starting price of 800,000 yen (approximately 370,000 yuan) [3] - Zhejiang Li Auto Battery Co., Ltd. was established with a registered capital of 70 million yuan, focusing on battery manufacturing and electric vehicle charging infrastructure [4] Financial Performance - SAIC Motor reported a net profit of 2.083 billion yuan for Q3 2025, a year-on-year increase of 644.88%, with total revenue of 166.888 billion yuan, up 17.06% [5] - Seres reported a net profit of 2.371 billion yuan for Q3 2025, a year-on-year decrease of 1.74%, with total revenue of 48.133 billion yuan, up 15.75% [5] - BYD's Q3 revenue was 194.985 billion yuan, down 3.05% year-on-year, with a net profit of 7.823 billion yuan, down 32.60% [6]

比亚迪2025年第三季度业绩下降，存货余额再超1500亿元 2025年第三季度，比亚迪的归母净利润、扣非后净利润分别为78.23亿元、68.91亿元，同比分别下降32.60%、36.65%。 这是2022年以来比亚迪季度业绩首次同比下降，并且拖累其2025年前三季度的归母净利润、扣非后净利润同比分别下降7.55%、11.65%。 截至10月30日收盘，比亚迪A股股价报103.61元/股，下跌0.87%，总市值为9130亿元。 中国基金报记者 邱德坤 10月30日晚间，新能源汽车龙头比亚迪发布2025年三季报。 比亚迪2025年第三季度营业收入同比下降3.05%至1949.85亿元，是自2022年以来首次出现季度营业收入同比下降。 | | 本报告期 | 本报告期比上年同期 增减 | 年初至报告期末 | 年初至报告期末比 上年同期增减 | | --- | --- | --- | --- | --- | | 营业收入(元) | 194,984,598,000.00 | -3.05% | 566, 265, 546, 000. 00 | 12. 75% | | 归属于上市公司股东的净 利润(元) | 7,822,64 ...

Core Insights - BYD's Q3 revenue reached 194.99 billion yuan, with a net profit of 7.82 billion yuan, showing a 23% quarter-on-quarter increase but a 32.6% year-on-year decline [2] - For the first three quarters, BYD's revenue was 566.27 billion yuan, a 13% year-on-year increase, while net profit decreased by 7.55% to 23.33 billion yuan [2] - R&D expenses surged by 31% to 43.75 billion yuan, significantly exceeding net profit for the same period [2] Sales Performance - BYD's global sales reached 3.26 million units from January to September, marking an 18.64% year-on-year increase and achieving 70.87% of the annual target of 4.6 million units [2] - Intelligent models have become the main sales drivers, with over 1.7 million units equipped with the "Tian Shen Zhi Yan" driver assistance system sold since its launch [2] International Expansion - BYD's overseas sales reached 701,600 units in the first nine months, a remarkable 132% year-on-year increase, with products now available in 117 countries and regions [3] - BYD has maintained its position as the global leader in pure electric vehicle sales for four consecutive quarters, with 1.61 million units sold in the first three quarters, surpassing Tesla's 1.22 million units [3] Market Strategy - BYD introduced the K-EV BYD RACCO at the Tokyo Motor Show, tailored for the Japanese market, and launched its first plug-in hybrid model, the Sea Lion 06DM-i, to accelerate market penetration [4] - The company has unified supplier payment terms to within 60 days, reflecting a commitment to industry collaboration and a healthier supply chain ecosystem [4] Future Outlook - Citigroup's latest report forecasts BYD's sales to reach 4.67 million and 5.39 million units in the next two years, driven by high-end brand growth, technological advantages in plug-in hybrids, and strong overseas sales [4]

Core Viewpoint - BYD (002594.SZ) reported a revenue of 566.266 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 12.75%. However, the net profit attributable to shareholders decreased by 7.55% to 23.333 billion yuan, and the net profit after deducting non-recurring gains and losses fell by 11.65% to 20.49 billion yuan [1]. Financial Performance - The company achieved a total operating revenue of 566.66 billion yuan in the first three quarters [1] - Year-on-year revenue growth was recorded at 12.75% [1] - Net profit attributable to shareholders was 23.333 billion yuan, showing a decline of 7.55% compared to the previous year [1] - The net profit after excluding non-recurring items was 20.49 billion yuan, which represents a decrease of 11.65% year-on-year [1]

Core Insights - BYD's Q3 2025 performance shows a decline in net profit and revenue, marking the first year-on-year decrease since 2022 [2][4] - The company's inventory balance has exceeded 150 billion yuan, indicating potential operational pressures in a competitive market [7][8] Financial Performance - In Q3 2025, BYD's net profit attributable to shareholders was 7.82 billion yuan, down 32.60% year-on-year, while the net profit after excluding non-recurring items was 6.89 billion yuan, down 36.65% [5] - The total revenue for Q3 2025 was 194.99 billion yuan, a decrease of 3.05% compared to the same quarter last year, marking the first decline in quarterly revenue since 2022 [4][5] Inventory and Sales Trends - As of the end of Q3 2025, BYD's inventory balance reached 152.97 billion yuan, a 31.83% increase from the end of Q4 2024 [8] - The sales volume of BYD's new energy vehicles showed a significant slowdown in Q3 2025, with September sales experiencing a year-on-year decline of 5.52% [6][11] Market Dynamics - The increase in inventory is attributed to the growth in automotive business, which may reflect heightened operational challenges in a competitive environment [10][8] - BYD has implemented multiple promotional measures from March to June 2025 to stimulate sales, indicating a response to market pressures [10]

Core Insights - BYD's Q3 2025 financial report shows a revenue of 194.99 billion yuan, a slight decrease of 3.05% year-on-year, and a net profit of 7.82 billion yuan, down 32.6% year-on-year, marking the largest quarterly profit drop in recent years [1][2] Financial Performance - For the first three quarters of 2025, BYD achieved a total revenue of 566.27 billion yuan, representing a year-on-year growth of 12.75%, while the net profit was 23.33 billion yuan, down 7.55% year-on-year [1] - The company's gross margin decreased by 2.89 percentage points to 17.87%, and the net profit margin fell by 0.95 percentage points to 4.28% for the first three quarters [2] Market Dynamics - Intense competition in the electric vehicle market has led to a price war, with significant price cuts from both domestic and foreign brands, impacting BYD's profitability [2] - BYD's global sales reached 3.26 million units in the first three quarters, an increase of 18.64% year-on-year, but the strategy of "exchanging price for volume" has weakened profit margins [2] Cost Pressures - Despite a decline in raw material prices, the upgrade in smart features has increased costs, with inventory rising to 152.97 billion yuan, a year-on-year increase of 31.83% [3] - The company has adjusted its delivery target for 2025 from 5.5 million to 4.6 million units, a reduction of 16% [3] R&D Investment - BYD's R&D expenditure for the first three quarters reached 43.75 billion yuan, a year-on-year increase of 31.3%, surpassing the total net profit for the same period [4] - The company has made significant advancements in smart driving technology and solid-state battery development, with a total of 12.2 million R&D personnel, an increase of 18.24% year-on-year [4][5] International Expansion - BYD's overseas sales reached 701,600 units in the first three quarters, a remarkable increase of 132% year-on-year, significantly contributing to the company's performance [6] - The company has established a presence in 117 countries, with a focus on key markets in Europe, Southeast Asia, and Latin America, where overseas vehicle gross margins are 3 to 5 percentage points higher than domestic [6] Future Outlook - Analysts predict that BYD's sales will reach 4.67 million units in 2026 and 5.39 million units in 2027, driven by growth in high-end brands and strong overseas sales [7]