BYD Earnings: Profit As Guided; Strong Vehicle Margin and Handset Component Recovery Lifted Growth

BYD delivered solid third-quarter results with net profit up by 82% year over year, at the midpoint of the company’s preliminary announcement. Thanks to the strong vehicle margin and recovery of the mobile handset segment, both revenue and net profit beat our expectations. Despite rising industrywide price competition during the period, the company delivered a 3-percentage-point increase in vehicle margin compared with a year ago. In view of the solid results, we lift our 2023-25 net profit forecasts to factor in a higher margin outlook.