BYD: Looking Forward To 2H26 Comebacks Amid New Models And Iterations

Michael Ngan185 FollowersFollow5ShareSavePlay(9min)CommentsSummaryBYD's sluggish FY25 sales were mostly due to elevated competition domestically (especially for lower ASP vehicles) and lagging progress on intelligent driving.The company clearly acknowledges the laggard of intelligence in a tech-savvy market. Chances are these problems will be resolved by FY26 given its leading R&D efforts.Meanwhile, significant strides in new products in the higher-end market were made along with its strong progress in battery technology.With more clarity of subsidy policies domestically relative to 2H25 and strong momentum in international growth, BYD is likely to experience sustained growth, contrary to the expectations in 2H25. DarthArt/iStock Editorial via Getty Images BYD's (BYDDF) FY25 results missed expectations slightly due to strong sales headwinds in 2H25. Revenue reached CNY803 billion vs. 777 billion in the previous year. The rise of "anti-involution" was a growth headwind and a reason forThis article was written byMichael Ngan185 FollowersFollowI specialize in fundamental research in the H and A share markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BYDDF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.