Morgan Stanley: BYD Company Limited's third-quarter net prof...

Morgan Stanley: BYD Company Limited's third-quarter net profit meets expectations, believing that annual sales volume can exceed 4 million vehicles. Morgan Stanley's research report states that BYD Company Limited's third-quarter net profit reached 11.6 billion yuan, an 11.5% year-on-year increase and a 28.1% quarterly increase, roughly in line with market expectations. Excluding the approximately 1.5 billion yuan profit contributed by BYD Electronic, it is expected that the per-vehicle profit of BYD Company Limited for the period will reach approximately 9300 yuan, higher than 8500 yuan in the second quarter and 6600 yuan in the first quarter. Gross margin performance also exceeded expectations, rising to 21.9% in the third quarter, compared to the bank's forecast of about 20%. Morgan Stanley believes that the increase in gross margin is mainly due to the increase in the proportion of DM-i 5.0 models, economies of scale, and a decrease in upstream material costs, which help offset the impact of operating expenses higher than expected. The bank believes that BYD Company Limited's full-year sales volume can exceed 4 million vehicles and may achieve a profit recovery in the fourth quarter, maintaining a 'in line with the market' rating with a target price of 230 Hong Kong dollars.