Changjiang Securities·2025-11-09 23:30Investment Rating - The investment rating for BYD is "Buy" and is maintained [7]. Core Insights - In Q3 2025, BYD reported revenue of 194.98 billion yuan, a year-on-year decrease of 3.1% and a quarter-on-quarter decrease of 3.0%. The net profit attributable to shareholders was 7.82 billion yuan, down 32.6% year-on-year but up 23.1% quarter-on-quarter. The net profit excluding non-recurring items was 6.89 billion yuan, down 36.6% year-on-year and up 26.9% quarter-on-quarter. The company is firmly committed to its intelligent driving transformation under its smart strategy, with the launch of the Super e platform marking a significant innovation in pure electric technology. The model lineup for high-end markets is expanding with the Tengshi, Yangwang, and Fangchengbao models. The overseas market continues to grow, with plans to enhance overseas channels and model matrix. The peak season in the second half of the year is expected to improve scale effects, and profitability is anticipated to continue to rise with the expansion of overseas markets and high-end offerings [2][5][11]. Financial Performance Summary - In Q3 2025, BYD's total sales volume was 1.114 million vehicles, showing a slight decline of 1.8% year-on-year and 2.7% quarter-on-quarter. The overseas sales volume remained high at 231,000 vehicles, with a year-on-year increase of 12.5 percentage points. The average revenue per vehicle was approximately 137,000 yuan, reflecting a slight decrease [11]. - The gross margin for Q3 2025 was approximately 17.6%, an increase of 1.3 percentage points quarter-on-quarter but a decrease of 2.5 percentage points year-on-year. The gross margin for the vehicle business was about 20.6%, up 1.9 percentage points quarter-on-quarter and down 2.7 percentage points year-on-year. The improvement in vehicle profitability was attributed to the reduction of dealer rebates, easing of terminal price wars, and ongoing cost reductions [11]. - The company expects a net profit attributable to shareholders of 35 billion yuan for 2025, corresponding to a PE ratio of 27 times, maintaining the "Buy" rating [11].