The upcoming earnings report from BYD Co. could solidify its position as the top non-state onshore stock in China. Last Thursday, BYD's market value exceeded that of Contemporary Amperex Technology Co., reaching 1.2 trillion yuan ($168 billion). However, BYD experienced a significant 7% drop in stock price on Friday, the largest since August 2022, causing CATL to reclaim the top position. BYD's current price-to-earnings ratio for the next year is around 20, lower than its three-year average, while CATL is trading at nearly 83 times earnings, similar to Tesla Inc.

The recent stock decline highlighted the susceptibility of BYD shares to regulatory and geopolitical risks despite a strong performance earlier in the year. Investors are eager to see BYD's earnings report, particularly focusing on its full-year sales targets, export figures, and the impact of its competitive pricing strategy on profit margins per vehicle. Options traders are anticipating a 4.5% stock movement following the report, exceeding the average 3% fluctuation observed in the past eight quarterly reports.