BYD Company’s third-quarter automobile revenue fell 3% year on year due to decreased volume and vehicle pricing. Net profit dropped 33% due to weak vehicle margins and slow handset components business. Vehicle exports, 21% of total sales, couldn’t offset domestic weakness. Fair value estimate lowered to HKD 108, shares remain fairly valued.

Competition pressure and lack of new model launches will lead to underperforming vehicle volume growth. Sales volume forecasted to reach 4.6 million units in 2025, up 7% year on year. Third-quarter revenue decreased 3% to CNY 195 billion. Gross margin narrowed to 18% due to profitability declines in both auto and handset segments.

Read more at Morningstar: BYD Earnings: Revenue and Net Profit Missed as Competition Weighed on Vehicle Margin