By Jiahui Huang

BYD is scheduled to report results for the third quarter on Wednesday. Here is what you need to know:

NET PROFIT: The Chinese auto giant is expected to post third-quarter net profit of 10.67 billion yuan, equivalent to $1.50 billion, according to a poll of analysts by Visible Alpha, up 2.5% from a year earlier. Citi analysts wrote in a recent note that BYD would likely achieve the upper bound of the 10.5 billion yuan-11.8 billion yuan net profit consensus forecast range, thanks to strong sales momentum, effective cost control and revenue-mix changes in the period.

REVENUE: The electric-vehicle maker's revenue likely rose 26% to 204.86 billion yuan, according to Visible Alpha.

BYD's Hong Kong-listed shares rose 22% in the third quarter and have gained 37% year to date.

WHAT TO WATCH:

--MARGIN: Investors will be looking at BYD's gross profit margin after the EV maker improved the profitability metric to 20.0% in the first half from 18.3% a year earlier. BYD's sales figures will also be in focus amid concerns about the impact of more price cuts from Tesla and other EV makers, Citi analysts said.

--OVERSEAS EXPANSION: It will be worth watching how much growth China's leading EV maker is able to generate overseas, CCB International analyst Qu Ke said. Investors will look for details on its overseas expansion plan and performance.

--PROFIT PER UNIT: Investors will be watching whether BYD can improve its net profit per car given its strong sales momentum, CCB International's Qu said. In the second quarter, the company made a net profit of about 8,000 yuan a vehicle, he said. Investors will scrutinize the per-unit profit figure to gauge how price cuts have affected the company's profitability.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

October 28, 2024 04:56 ET (08:56 GMT)

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