BYD is scheduled to report results for the third quarter on Thursday. Here is what you need to know:
NET PROFIT: The Chinese auto giant is expected to post third-quarter net profit of 11.10 billion yuan, equivalent to $1.66 billion, according to a poll of analysts by Visible Alpha, up 42% from a year earlier.
REVENUE: The electric-vehicle maker's revenue is expected at 240.83 billion yuan, according to Visible Alpha, a 23.5% increase from the previous year.
BYD's Hong Kong-listed stock rose 4.3% in the third quarter, supported by optimism about the company's overseas expansion and expectations of new technology to restore growth. Still, shares have declined 26% so far this year, weighed by slower demand overall in the domestic market.
WHAT TO WATCH:
--MARGIN: Investors will look at the EV maker's gross margin for signs of how well it is managing mounting pressure from intense competition and price cuts in China's auto market.
--EXPORTS: Like many of its Chinese auto peers, BYD has been aggressively expanding abroad to offset slowing domestic demand. Investors will focus on exports and international sales data to assess whether the company's overseas business can help it sustain growth momentum.
--PROFITABILITY: BYD's net profit per unit is estimated at 2,500 yuan in the third quarter, according to Citi. Every 1,000 yuan beat implies a 772 million yuan additional improvement on third-quarter net profit, its analysts added in a note. Investors will scrutinize BYD's per-unit profit figure to gauge how reduced prices have affected profitability.
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