0830 GMT - BYD's recent selloff implies that market participants are wary of the Chinese automaker's weak 2Q sales volume and revenue, Macquarie analysts write in a note. The sharp drop in gross profit margin came as a surprise, as higher overseas sales and premium models were expected to mitigate weaker Ocean and Dynasty sales, they add. Beijing's campaign against excessive competition may have forced BYD to absorb more costs upfront, weighing on 2Q results, they say. Meanwhile, pricing is stabilizing and margins are recovering in 2H, they add. Planned model updates could help BYD recapture its pole position in China's EV market in the coming peak sales season, they add. Macquarie maintains its outperform rating for the stock but cuts the target price to HK$142 from HK$155. Shares last at HK$104.80. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

September 04, 2025 04:30 ET (08:30 GMT)

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