Morgan Stanley's research report states that BYD's third-quarter net profit is 11.6 billion yuan, an 11.5% year-on-year increase, and a 28.1% quarter-on-quarter increase, roughly in line with market expectations. Excluding BYD Electronics' contribution of approximately 1.5 billion yuan in profit, BYD is expected to achieve a unit profit of about 9,300 yuan per vehicle during the period, higher than 8,500 yuan in the second quarter and 6,600 yuan in the first quarter. The gross margin performance also exceeded expectations, rising to 21.9% in the third quarter, compared to the bank's forecast of about 20%. Morgan Stanley believes that the improvement in gross margin is mainly benefited from the increased share of the DM-i 5.0 model, economies of scale, and a decrease in upstream material costs, which help offset the impact of operating expenses higher than expected. The bank believes that BYD's annual sales volume can exceed 4 million vehicles and may achieve a profit rebound in the fourth quarter, maintaining a "in-line with the market" rating with a target price of HK$230.