Morgan Stanley maintained its sales forecasts for BYD COMPANY, projecting 5.2 million and 5.7 million vehicle sales for 2026 and 2027, respectively, and introduced a new forecast of 6.2 million for 2028. However, it lowered gross margin forecasts for 2026 and 2027 due to rising raw material costs and increased expenses from upgrades in technology. Operating expense forecasts were also raised, leading to a 13% cut in net profit forecasts and a 12% reduction in EPS forecasts. The target price is set at HKD126 with an Overweight rating.
