Chinese automotive giant BYD is preparing to announce its financial results for the first quarter of 2025 tomorrow, Friday. Expectations indicate that the company will achieve strong growth in both net profits and revenues, driven by record sales of new energy vehicles (NEVs) and robust performance in foreign markets.
Earnings and Revenue Forecasts:
According to analyst forecasts, BYD is likely to report a net profit for the first quarter of 7.72 billion yuan (approximately 1.06 billion USD). This represents significant growth compared to the profits in the same period last year, which were 4.57 billion yuan. For revenues, a 52% increase is expected, reaching 189.64 billion yuan.
This expectation is attributed to the company's launch of the "God's Eye" advanced driving assistance program, which contributed to supporting sales during the period.
Strong Stock Performance:
The positive forecasts have been reflected in the performance of BYD's stock listed in Hong Kong (SHE: 002594), which rose remarkably by 47% during the first quarter of this year. The stock has increased by 5.30% over the past five days, closing yesterday at 366 yuan.
What Are Investors Looking For?
Profit Margin: Although BYD issued preliminary results for the first quarter in early April, investor focus will be on the profit margin. Analysts will seek to assess the company's ability to control costs and maintain profitability amid the fierce competition in the electric vehicle market in China. Net Profit Per Vehicle : Analysts expect a strong improvement in profitability during the first quarter. They anticipate that the net profit per vehicle will be around 8,500 yuan, thanks to an increase in business volume, reductions in significant price discounts, and improved contributions from foreign markets. Overall, BYD's results for the first quarter of 2025 are expected to show strong performance that reflects the momentum the company has in the electric vehicle market, with investors looking forward to details regarding the company's profitability and strategies in facing competition.
