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UOB KAYHIAN |
UOB KAYHIAN |
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BYD Company (1211 HK) 4Q25: Results In Line; Earnings To Recover From 2Q26; Upgrade To BUY
Highlights • 4Q25 net profit came in as expected at Rmb9,286m (-38.2% yoy/+18.7% qoq), bringing full-year net profit to Rmb32.62b (-19% yoy). • We believe BYD’s earnings bottomed out in 4Q25-1Q26, and 2026-28 profit will be driven by new tech launches, overseas expansion and external battery sales. • We raise our 2026-27 net profit forecasts by 58%/100% to Rmb45.41b/Rmb56.35b respectively, and introduce our 2028 net profit forecast of Rmb69.64b, implying a 29% three-year CAGR. • Upgrade from SELL to BUY; lift target price from HK$81.00 to HK$130.00.
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MetaOptics (METAO SP) From Lab To Market: A Metalens Player With Scalable Growth
Highlights • MetaOptics delivered strong early commercial traction, with 2025 revenue rising 891% yoy to S$0.8m, driven by its first DLW sale. • The group is differentiated by its focus on colour metalenses, positioning it to benefit from a high-growth market (five-year CAGR of 75% in 2024-29). • MetaOptics remains loss-making and trades at 55x 2026F P/Sales vs peers at 2.4x, with valuation driven by scalability and technology validation rather than near-term earnings.
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MAYBANK KIM ENG |
UOB KAYHIAN |
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MIBG Sustainability Research Oil shock to accelerate EV transition; Cleaner automakers likely winners
Oil shock could quicken the shift to EVs from ICE The Middle East war is reminiscent of the Russia-Ukraine war in 2022 because it has ensured that the world shifts towards the energy security provided by clean/renewable energy (also the most economical source of energy). Since 2022, renewable capacity has increased three-fold, and clean tech spending rose by ~50%. Similarly, as a fallout of this war and the shortage of oil & gas driving up fuel prices in several countries, an acceleration in EV adoption is likely. Rising EV adoption has reduced oil demand for transport by 1m bpd between 2018 and 2024, and another 1m bpd from 2024–2026, and is expected to cut up to 5m bpd by 2030. We assessed 22 global automakers and 5 shared mobility service providers to understand their transition journey, adoption of clean mobility, CO2 emissions, and interim and long-term targets to achieve carbon neutrality/net zero. Our assessment suggests automakers transitioning more quickly towards EVs and low-carbon mobility are also the ones showing the highest increase in market capitalization from 2020 to 2026.
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Northern Solar (NORTHERN MK) Maiden Utility-Scale Project To Spur Near-Term Growth
Highlights • Northern Solar has secured its maiden RM120m utility-scale EPCC contract, likely for the LSS5 programme. This bolsters earnings visibility over FY27-28. • The company commands a healthy orderbook of RM204m, with recurring orderbook replenishment estimated at RM80m-100m. We project net profit growth of 43% for FY27 as ATAP and BESS will pivot Northern Solar’s orderbook to a blue-sky estimate of RM300m. • Maintain BUY with a target price of RM1.00. We like Northern Solar as a niche player within the RE space – managing power efficiency for small-to-medium sized C&I customers (<1MW). Near-term prospects appear bright as the company is set to leverage ATAP for its C&I customers and benefit from BESS solutions to help existing customers shave MD charges.
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