Chinese Smartphone Makers, Component Suppliers' Profits Poised to Rise — Market Talk

Revenue and net profit grew strongly year-over-year, with EPS and ROE also improving. Cash flow from operations declined due to higher capital expenditures and investments, while the company expanded overseas capacity and reduced debt.

Original document: Lens Technology Co. Ltd. Class A [300433] Interim report — Oct. 28 2025

By Jason Chau

Shares of Chinese electric-vehicle makers rose in Hong Kong as the market reopened after a holiday, buoyed by solid sales figures.

Nio led the charge, surging about 7% to its highest level since January last year after the carmaker set new monthly and quarterly sales records.

The Shanghai-based company delivered 34,749 vehicles in September, up 64% on the year, while sales for the quarter climbed 41%.

Both Nio and XPeng delivered strong results on the back of model launches and competitive lineups, DBS analysts said in a note. They expect the companies' sales momentum to continue.

Guangzhou-based XPeng's deliveries surged 95% from a year earlier in September, more than doubling third-quarter sales.

XPeng H-shares were last trading 2.4% higher.

China's EV sales have been rebounding from a summer slowdown as the peak season begins. However, industry leader BYD underperformed relative to its peers, posting its first drop in shipments in 18 months. It delivered 396,270 units in September, down from 419,426 in August.

China's crackdown on pricing competition is pushing the Shenzhen-based carmaker to adjust its strategy, said Deutsche Bank's Bin Wang, noting that BYD had previously cut its full-year sales forecast.

That doesn't seem to have soured appetite for BYD's H-Shares, however, with the stock last up 3.6%.

Markets will be closely watching third-quarter sales due from BYD rival Tesla. According to FactSet, analysts expect a much smaller on-year decline.

Other results from Chinese EV players signaled solid demand.

Geely delivered 273,125 units in September, up 35% on the year. Great Wall Motor sold 133,639 vehicles, up 23%. Shares were last up 1.4% and 1.5% respectively.

EV newcomer Xiaomi did well too, topping 40,000 monthly deliveries for the first time. Shares were last up 4.3%.

Looking ahead, analysts expect sales to keep rising, though the industry faces persistent headwinds.

Car sales in China usually peak in September and October, in what automakers call "golden September and silver October". China's Golden Week holiday, which falls during the period, usually boosts consumer demand.

Beijing's consumer trade-in programs are also expected to keep supporting auto sales, Nomura analysts said in a note.

However, automakers still face intense competition, and can't cut prices the way they used to due to policymakers' efforts to rein in price wars.

"We maintain our view that competition will likely further intensify in the China auto industry," Nomura analysts Joel Ying and Ethan Zhang said.

Write to Jason Chau at jason.chau@wsj.com

By Jason Chau

Chinese automakers posted stronger September sales, signaling a rebound in electric-vehicle demand after a lackluster summer.

Guangzhou-based XPeng delivered 41,581 EVs in the month, up 95% from a year earlier and 10% from August. That led to a more than doubling in its third-quarter sales to 116,007 units. Xiaomi, a relative newcomer to China's highly competitive EV market, topped 40,000 monthly deliveries for the first time, outpacing more established rivals.

Zeekr Group, which is being taken private by its parent, Geely Automobile, also posted solid figures following new plug-in hybrid releases. The Zhejiang-based carmaker delivered 51,159 vehicles across its Zeekr and Lynk & Co brands in September, an increase of 8.5% from a year ago and 14% from August.

NIO set new monthly and quarterly sales records. The Shanghai-based EV maker delivered 34,749 vehicles in September, up 64% from a year earlier, with sales for the latest quarter climbing 41% to 87,071 units.

In contrast, Beijing-based Li Auto reported a monthly delivery of 33,951 units, down 37% from a year ago.

All eyes are now on the latest numbers from EV champion BYD. Deutsche Bank expects the Chinese auto giant to reach 380,000 deliveries, a 2% increase from August but a 9% decline from the previous year.

The encouraging sales figures come as China's auto industry continues to grapple with overcapacity and price wars, which authorities have sought to address.

"The market is yet to reach the bottom in terms of fierce competition," Nomura analysts Joel Ying and Ethan Zhang said in a recent note, maintaining a cautious outlook until meaningful supply-demand balancing happens.

"Considering the domestic market situation, global expansion has become a common strategy for most of the active players," they said.

Write to Jason Chau at jason.chau@wsj.com

By Jason Chau

Chinese automakers posted stronger September sales, signaling a rebound in electric-vehicle demand after a lackluster summer.

Guangzhou-based XPeng delivered 41,581 EVs in the month, up 95% from a year earlier and 10% from August. That led to a more than doubling in its third-quarter sales to 116,007 units. Xiaomi, a relative newcomer to China's highly competitive EV market, topped 40,000 monthly deliveries for the first time, outpacing more established rivals.

Zeekr Group, which is being taken private by its parent, Geely Automobile, also posted solid figures following new plug-in hybrid releases. The Zhejiang-based carmaker delivered 51,159 vehicles across its Zeekr and Lynk & Co brands in September, an increase of 8.5% from a year ago and 14% from August.

NIO set new monthly and quarterly sales records. The Shanghai-based EV maker delivered 34,749 vehicles in September, up 64% from a year earlier, with sales for the latest quarter climbing 41% to 87,071 units.

In contrast, Beijing-based Li Auto reported a monthly delivery of 33,951 units, down 37% from a year ago.

All eyes are now on the latest numbers from EV champion BYD. Deutsche Bank expects the Chinese auto giant to reach 380,000 deliveries, a 2% increase from August but a 9% decline from the previous year.

The encouraging sales figures come as China's auto industry continues to grapple with overcapacity and price wars, which authorities have sought to address.

"The market is yet to reach the bottom in terms of fierce competition," Nomura analysts Joel Ying and Ethan Zhang said in a recent note, maintaining a cautious outlook until meaningful supply-demand balancing happens.

"Considering the domestic market situation, global expansion has become a common strategy for most of the active players," they said.

Write to Jason Chau at jason.chau@wsj.com

OpenAI's move to develop edge devices is likely to boost Chinese hardware companies in Apple's supply chain, says Citi's Kyna Wong in a note. The AI company is seeking to make AI-powered "companion" devices, which could include AI glasses, a digital voice recorder and a wearable pin, with the first wave slated for late 2026 or early 2027 launch, she says. Apple suppliers such as Luxshare Precision Industry and GoerTek have already been approached by OpenAI, she notes, quoting media reports. Other hardware companies that may gain from OpenAI's device development include Cowell e Holdings, Lens Technology and AAC Technologies, which are all within Apple's supply chain, she adds. News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI. (megan.cheah@wsj.com)

Lens Technology is likely to ride on Apple's wave of premium component upgrades, CGS International analysts say in a note. They expect the Chinese components manufacturer to supply over 60% of iPhone 17's upgraded cover glass and expand its midframe supply to three Apple models. Lens Tech is also likely to gain from automakers' push towards smart cockpit electrification and the rising popularity of emerging devices such as humanoid robots. They estimate Lens Tech will deliver 35% net profit CAGR over 2024-2027. CGS International starts coverage on Lens Tech with an add rating and HK$32.00 target price. Shares are 0.6% higher at HK$27.26. (megan.cheah@wsj.com)