Zhi Tong Cai Jing·2025-10-31 07:49Core Viewpoint - UBS report indicates that BYD's (002594) performance in Q3 shows encouraging signs, with net profit rebounding 23% from the low levels of Q2, leading to a reaffirmation of a "Buy" rating and a target price of HKD 160 [1] Group 1: Financial Performance - BYD's net profit margin has recovered from the low levels seen in Q2, reflecting a positive trend in financial performance [1] - The net profit for Q3 showed a 23% increase compared to Q2, indicating a rebound in profitability [1] Group 2: Market Challenges - Despite the positive performance, the domestic competition remains intense, and the outlook for the industry in the coming year is challenging due to a 5% purchase tax on electric vehicles starting in 2026 [1] Group 3: International Expansion - BYD has made significant breakthroughs in overseas markets, including record sales of 11,000 electric vehicles in the UK in September [1] - The production at the Brazilian factory has commenced, contributing to international market penetration [1] - The company is experiencing market share growth from Australia to Turkey, indicating successful international expansion efforts [1] Group 4: Product Strategy - Recent high-end product initiatives have shown effectiveness, with the newly launched FCBTai7 approaching monthly sales of 10,000 units [1] - The Tengshi N8 has been introduced at a competitive price of approximately 300,000 RMB, enhancing BYD's product offerings [1]