The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0354 GMT - BYD's 2Q results disappointed with net profit down 30% on year and a gross profit margin on 16.3%, its lowest since 3Q22. This was worsened by a 71% rise in R&D spending. Nomura cuts its FY25-27 shipment forecasts by 10%-11% for and lowers its earnings forecasts by 27%-30%. Nonetheless, Nomura analysts Joel Yang and Ethan Zhang expect the company to see a turnaround in 2026 helped by technology upgrades. Improvements will likely be boosted by overseas sales and a new factory in Brazil. The bank cuts the stock's target price from HK$163.67 to HK$132, but maintains a Buy rating. BYD shares were recently at HK$109.55. (jason.chau@wsj.com)
0206 GMT - Port of Tauranga gets a new bull in Forsyth Barr, which says it is more confident in the company's earnings momentum following its FY 2025 result. Analyst Andy Bowley raises Port of Tauranga to outperform from neutral, noting that FY 2025 underlying profit of NZ$126 million was above the top end of the company's guidance range. The profit growth was driven by pricing gains and robust cargo growth. "Strong earnings growth is likely to be sustained over the medium term as Port of Tauranga continues to close the gap on its 7% return on invested capital $(ROIC)$ target--currently 5.3% on its operational assets," Forsyth Barr says. Port of Tauranga is up 1.6% at NZ$7.17. (david.winning@wsj.com; @dwinningWSJ)
2305 GMT - Citi thinks investors are underestimating the earnings potential of military shipbuilder Austal in FY 2026. Analyst Sam Teeger notes consensus expectations are for Austal to make A$119.7 million of Ebit in FY 2026. That appears conservative, given the contribution from Austal's Module Manufacturing Facility in the U.S. will be higher, Citi says. Austal expects a contribution of some A$23 million from MMF. Citi retains a neutral/high risk call on Austal. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
September 01, 2025 04:20 ET (08:20 GMT)
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