【招银国际】–Sequential margin contraction indicates inventory digestions may persist till FY23E.pdf

–Proactive competitive strategy may weigh on nearterm margin but benefit LT growth

PCB outperformed CCL in 3Q; margin improved sequentially

BYD Company (1211 HK) 4Q22 beat; FY23E margins likely overestimated

Core net profit in 2022 +53% YoY in line with expectation; Margin recovery in 4Q

Margin improvement driven by economies of scale

–Expecting upbeat margin on better ARM

Structural margin improvement trend intact

1H24 VNB beat with margin recovery; expect total >US$7bn cash returns to shareholders in FY24

Recent sell-off overdone; Positive on investments and margin recovery in FY24-25E

Fair guidance but decent inventory and margin