H/A: Buy/Buy: Battery capacity ramp to reaccelerate domestic growth from 2027e

We cut our 2026e volume forecast by 11% to ~4.7m units on capacity constraints, but expect volume to grow 16% y-o-y in 2027e as additional battery capacity comes through and exports keep growing. 2Q26 net profit of RMB8.2bn was broadly in line with our expectations, with gross margin at 18.9% (vs. 18.8% in 1Q26), supported by a solid overseas mix and domestic product portfolio upgrades, though an FX loss of over RMB2bn from RMB appreciation was an unwelcome surprise. Domestic demand for 2nd-gen Blade-equipped models remains strong on a solid order backlog. Exports built in August to around 189k units, and we expect momentum to hold through September-December, taking full-year exports to ~1.9m units;