Ge Long Hui·2025-10-31 03:33Core Insights - Morgan Stanley's report indicates that BYD's (1211.HK) third-quarter profit fell by 33% year-on-year, which was below market expectations, but showed a recovery of 23% compared to the second quarter [1] - The automotive business unit profit reached approximately 6,100 RMB, an improvement from 4,800 RMB in the second quarter, yet still below market expectations [1] - The gross margin increased by 1.3 percentage points to 17.6% quarter-on-quarter, attributed to reduced discounts in the Chinese market and lower costs for the autonomous driving system, offsetting the impact of decreased overseas sales [1] - The third-quarter performance did not surprise investors but aligned with previously lowered market expectations, with ongoing focus on overseas business progress, next year's new product cycle, and potential sales policies in response to the 2026 increase in new energy vehicle purchase tax [1] - Morgan Stanley maintains an "Overweight" rating with a target price of 130 HKD [1]