Jin Shi Shu Ju·2025-09-01 03:58Core Viewpoint - Morgan Stanley's research report indicates that BYD's (01211.HK) second-quarter earnings were 30% lower than expected due to intense price wars compressing profit margins [1] Group 1: Earnings Performance - The company's management anticipates a rebound in earnings starting in the third quarter as government measures to curb excessive competition begin to take effect [1] - Discounts in the industry have started to narrow as of June [1] Group 2: Long-term Outlook - Morgan Stanley maintains a positive long-term outlook, particularly regarding BYD's overseas expansion progress [1] - Capacity construction in Indonesia, Brazil, and Hungary has been completed one to two quarters ahead of the original schedule [1] Group 3: Profit Contribution and Target Price - The contribution of overseas business to the group's total profit is expected to increase from approximately 40% this year to 50% [1] - The target price for H-shares has been reduced from 160 HKD to 150 HKD, while maintaining an "overweight" rating [1]