Morgan Stanley expects fourth-quarter orders to rise 10%–15% quarter on quarter, but sees no significant year-end sales push. With domestic demand weak and the boost from subsidies fading, export scale and overseas execution have become key factors differentiating automakers.
The company expects liquid milk growth to accelerate in the fourth quarter and maintains its full-year revenue and core operating margin guidance. Morgan Stanley believes stabilizing industry demand and improving competition support market share gains, but the duration of the raw milk oversupply will continue to affect promotional spending.
Revenue rose 83% year over year and operating profit exceeded the market consensus by 19%; the book-to-bill ratio rose further to 1.64, but higher component prices weighed on gross margin.
The official price of the L05 is 20 thousand yuan lower than its presale price for the same configuration. Morgan Stanley is optimistic about its sales potential, but margins will depend on whether advanced driver-assistance configurations and scale can offset hardware costs.
Management is highly confident of exceeding its 2027 data center engine targets, but diesel and gas engines are competing for capacity, potentially affecting gas engine shipments this year; the traditional engine business also faces near-term pressure.
The company signed 8.5 billion yuan in new contracts in the first three quarters, but execution of old contracts, overseas labor costs and pricing pressure on laboratory services continued to weigh on gross margin. Management expects the average price of orders in execution to recover more noticeably in the first half of 2027.
Morgan Stanley believes early efficacy from the first-in-human trial of JMT108 was slightly better than expected and IL-15-related adverse reactions were generally manageable. In the breast cancer pipeline, B7H3 ADC data met expectations, while cross-trial comparisons of the HER2 bispecific antibody combination are limited.
In the third quarter of 2026, Proya Group’s revenue grew 30% year over year, but Morgan Stanley estimates it fell 2% excluding Flower Knows. Weak growth at the flagship brand and pressure on gross margin and marketing returns prompted the bank to cut its earnings forecasts and rating.
US third-quarter GDP growth rose to an annualized 3.4% from the previous quarter, supported by both AI investment and consumer spending. Morgan Stanley believes productivity gains allow the economy to accommodate faster growth, but an oil price shock and a broadening of demand could alter the rate-hike path.
Management expects China business growth to accelerate in 2027, with IVD revenue rising 10%; overseas growth will remain faster, but higher raw material costs and reagent price cuts pose pressures.
Early deliveries in the September quarter boosted shipments, but also temporarily paused growth in the December quarter. The timing and product mix of data center SSD deliveries will affect shipments and average selling prices in the following quarter.
In the third quarter of 2026, the company’s revenue was broadly flat year on year and net profit fell 1%, as costs grew faster than revenue. Morgan Stanley expects higher airline fares during the off-season to support fourth-quarter profit growth and values the company’s cash flow and defensive qualities.
Geely management expects fourth-quarter sales to exceed 900 thousand vehicles. Sales, raw material prices and an improved product mix are expected to lift the gross margin quarter on quarter and support profit of 6 billion yuan. Following the reduction in export tax rebates, the company plans to protect overseas margins through pricing of new models and localized production.
Morgan Stanley tracking data show that planned air conditioner output in November rose 15.6% year over year, while apparent steel consumption remained below the prior-year level. Cement prices stabilized or rose, though demand and cost constraints persisted in some areas.
Rising brake-by-wire penetration at Chery and Geely drove Bethel's third-quarter revenue up 34% year over year; however, Morgan Stanley estimates that profit growth came mainly from consolidating Yubei, while Bethel's own profit was broadly flat.
Third-quarter revenue rose 14% both year over year and quarter over quarter, but average selling price and gross margin declined sequentially. Lower expense ratios and improved non-operating profit supported profit growth, while cash balances fell partly because of debt repayment.
Management expects trans-Pacific demand to remain resilient in the fourth quarter of 2026, Asia-Europe spot freight rates to continue recovering, and long-term contract rates to rise year on year in 2027; however, unit costs rose in the third quarter, and Morgan Stanley maintains an Underweight rating on the Hong Kong-listed shares.
In the third quarter of 2026, the company's revenue rose 17% quarter on quarter, while net profit fell 55%. Nomura believes high-priced battery cells, tax changes and overseas compliance costs will continue to constrain energy storage margins.
A higher share of lower-priced equipment held back revenue growth, while the number of equipment units accepted and the gross margin both improved. Nomura expects new orders to support 2027, while noting that third-quarter profit was boosted by fair-value gains.
Investment losses weighed on third-quarter net profit, but recurring net profit continued to grow. Nomura cut its earnings forecasts for the next three years and its Hong Kong share price target, while expecting AI platform upgrades to increase the value of high-end PCBs.
