Drop in Quarterly Profit Causes Anticipated 8% Decrease in BYD Hong Kong Shares

In a recent report published by Donny Kwok and Anne Marie Roantree, it has been indicated that the Hong Kong-listed shares of electric vehicle manufacturer BYD are expected to decline. The report suggests that this decline is due to the company's reported quarterly profit falling for the first time in over three years.

The electric vehicle industry is currently experiencing intense competition, with numerous companies and individuals contributing to a cutthroat price war. This competition has been a recent development and is causing financial strain for BYD.

Tesla, with its aggressive price reductions, Xiaomi and Xpeng, which have increased sales and market share with competitive pricing and technology, and Chinese competitors such as SAIC, Chery, Changan, Geely, are among those involved in the price competition atmosphere. Global automakers VW and Toyota have also entered the segment with new models, further intensifying the competition.

As a result of this intense competition and the company's own deep discounts of up to 20%, BYD experienced a drastic over 45% net profit drop in the first half of 2025 and a near 15% domestic sales decline in China.

The editing of the report was done by Kim Coghill. The expected opening price of BYD's stock is HK$105.20, and the Hong Kong-listed shares are scheduled to open at this price. According to the report, the decline in the shares is expected to occur when BYD's stock opens.

It's important to note that the electric vehicle manufacturer BYD is based in China. The decline in the company's profit marks a significant change in its financial performance, as reported in the latest quarterly results.

The report also implies that the price war in the electric vehicle industry is causing financial strain for BYD. As the industry continues to evolve, it will be interesting to see how companies like BYD navigate these challenging market conditions.