J.P. Morgan: BYD Company Limited (1211.HK) — Technology Day: In-House Chip and Humanoid Robot

J.P. Morgan reiterated an Overweight rating on BYD's H-shares with a target price of 380 Hong Kong dollars, following the company's recent Technology Day event. The showcase featured BYD's proprietary automotive-grade chip and a prototype humanoid robot, both underscoring the automaker's deepening vertical integration and technological capabilities. The new chip, built on a 7nm process and delivering 200 TOPS of computing power, is slated for mass production integration in 2027. J.P. Morgan highlights that in-house silicon could slash intelligent driving system costs by 30–40%, facilitating the rollout of advanced driver assistance features across mainstream models priced between 100,000 and 200,000 yuan.

The humanoid robot, possessing basic mobility and grasping functions, remains a long-term project. While it is 3–5 years away from commercialization and carries no near-term revenue expectations, it demonstrates substantial research depth. Financially, BYD continues to execute flawlessly. First-quarter 2026 vehicle deliveries surged 45% year-over-year to 850,000 units, capturing a 12.5% market share. The firm maintains its full-year sales forecast of 4 million vehicles, representing 35% growth. Gross margins improved sequentially to 18.2%, and net profit is projected to hit 38 billion yuan, increasing 40% year-over-year. At roughly 21 times forward earnings, the stock trades below its historical average, offering compelling value. Primary risks involve potential delays in chip mass production, aggressive industry pricing wars, and overseas regulatory headwinds.