Investment Rating - The investment rating for BYD Electronics is "Buy" (maintained) [1] Core Views - The company has shown significant quarter-on-quarter improvement in performance and is expected to achieve growth through multiple avenues, including consumer electronics, automotive electronics, and AI [3][2] - The acquisition of Jabil has introduced financial costs and impairments, but the overall market demand in consumer electronics and automotive sectors is expected to drive revenue growth [3] Financial Forecasts and Valuation - Total revenue is projected to increase from 107.92 billion CNY in 2022 to 191.65 billion CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 20.49% to 11.00% [1] - Net profit attributable to shareholders is expected to rise from 1.86 billion CNY in 2022 to 7.63 billion CNY by 2026, with a notable increase of 117.56% in 2023 [1][3] - The latest diluted EPS is forecasted to grow from 0.82 CNY in 2022 to 3.39 CNY in 2026, indicating strong earnings growth potential [1] - The P/E ratio is projected to decrease from 37.86 in 2022 to 9.22 by 2026, suggesting an attractive valuation as earnings grow [1] Business Segments and Growth Drivers - The consumer electronics segment is expected to benefit from new product launches and the integration of AI technologies, with significant contributions from tablet and smartphone sales [3] - The automotive electronics segment is poised for growth due to the parent company's increasing vehicle sales and the introduction of advanced features such as smart cockpit systems and sensors [3] - The AI segment is anticipated to expand as global demand for AI computing power rises, with collaborations with NVIDIA to develop comprehensive AI solutions [3]

Investment Rating - The report maintains a "Buy" rating for BYD Electronics, with a target price of HKD 47, indicating a potential upside of 45% from the current price of HKD 32.55 [2][3]. Core Insights - BYD Electronics reported a net profit of RMB 3.06 billion for the first three quarters, with total revenue reaching RMB 122.1 billion, reflecting a year-on-year growth of 32.54%. The gross profit was RMB 9.06 billion, up 14.68% year-on-year, while net profit growth was modest at 0.64% [2]. - The growth in revenue and profit is primarily attributed to the consolidation of Jabil's profits following its acquisition, alongside growth in high-end Android devices and automotive electronics [2]. - The automotive electronics segment is expected to generate nearly RMB 20 billion this year, with high-value products like active suspension and smart cockpit gaining traction in the second half of the year [2]. - AI-related businesses are projected to contribute around RMB 1 billion in revenue this year, with expectations for significant growth in the following year [2]. Financial Summary - Revenue for 2024 is forecasted at RMB 167.1 billion, representing a growth of 28.5%, with net profit expected to reach RMB 4.33 billion, a growth of 7.3% [4]. - The company’s earnings per share (EPS) is projected to increase from RMB 1.79 in 2023 to RMB 1.92 in 2024, and further to RMB 2.39 in 2025 [4]. - The report anticipates a decrease in financial expenses in the coming year, which will positively impact profit contributions [2][4].

Investment Rating - Buy rating maintained for BYD Electronic (00285 HK) [1] Core Views - 2025 net profit expected to grow steadily driven by overseas major customer progress and valuation boost [1] - 2024Q4 net profit likely to return to YoY growth benefiting from seasonal peak of Jabil structural components and accelerated growth in automotive electronics [6] - 2025 growth drivers include Jabil structural components business, automotive electronics benefiting from BYD's high-end strategy, and AI server components and robotics business [4] Financial Performance - 2024Q3 revenue reached 43 55 billion yuan, up 21% YoY, meeting expectations [5] - 2024Q3 gross margin of 8 5% exceeded expectations due to high-margin structural components business [5] - 2024Q3 net profit was 1 55 billion yuan, in line with expectations [5] Business Outlook - Jabil structural components business expected to remain stable in 2025 with cost reduction and efficiency improvement measures [6] - Automotive electronics business to continue rapid growth driven by BYD's high-end vehicle sales and ADAS penetration [6] - AI server assembly and high-margin components business expected to scale up in 2025 [6] Financial Forecasts - 2024-2026 net profit forecasts revised up to 4 6/5 6/6 2 billion yuan from 4 2/4 9/5 8 billion yuan [4] - 2024-2026 EPS forecasts at 1 9/2 2/2 6 yuan [4] - Current price of 32 55 HKD implies 2024-2026 PE of 14 7/12 1/10 8x [4] Valuation Metrics - 2024E revenue forecast at 168 15 billion yuan, up 29 4% YoY [7] - 2025E revenue forecast at 182 80 billion yuan, up 8 7% YoY [7] - 2024E net profit forecast at 4 57 billion yuan, up 13 1% YoY [7] - 2025E net profit forecast at 5 56 billion yuan, up 21 6% YoY [7] - 2024E gross margin forecast at 7 7% [7] - 2025E gross margin forecast at 7 9% [7] Market Performance - Current price: 32 55 HKD [3] - 52-week high/low: 41 05/23 20 HKD [3] - Market cap: 73 34 billion HKD [3] - 3-month turnover rate: 36 17% [3]

Investment Rating - The investment rating for BYD Electronics is maintained as "Buy" with a target price of HKD 45.50 [3][9]. Core Insights - BYD Electronics reported a revenue of RMB 43.5 billion for Q3 2024, representing a year-on-year increase of 21% and a quarter-on-quarter increase of 3%. The gross margin improved to 8.5%, which is better than the company's previous guidance of 7-8% for the second half of 2024. The net profit attributable to shareholders was RMB 1.55 billion, up 1% year-on-year and 70% quarter-on-quarter [6][7][9]. Summary by Sections Financial Performance - Q3 2024 revenue reached RMB 43.5 billion, with a year-on-year growth of 21% and a quarter-on-quarter growth of 3%. The gross margin was 8.5%, showing a year-on-year decrease of 1.2 percentage points but a quarter-on-quarter increase of 1.7 percentage points [6][7]. - The net profit attributable to shareholders for Q3 2024 was RMB 1.55 billion, reflecting a year-on-year increase of 1% and a quarter-on-quarter increase of 70% [6][7]. Growth Drivers - The revenue growth in Q3 2024 was primarily driven by seasonal stocking from major North American clients and growth in the automotive business. The revenue structure is expected to improve further in Q4 2024 as new flagship models are launched [6][8]. - The company anticipates long-term growth to be driven by three main areas: North American client business, automotive business, and data center business, with a focus on expanding product offerings in collaboration with its parent company [8][9]. Valuation and Forecast - The target price of HKD 45.50 is based on a 2025E PE ratio of 17.44x, which is higher than the comparable company average of 15.64x, reflecting the company's enhanced position in the Apple supply chain. Expected net profits for 2024-2026 are RMB 42.4 billion, RMB 53.9 billion, and RMB 58.8 billion, respectively [9][10].

Investment Rating - The report maintains a "Strong Buy" rating for BYD Electronics, expecting it to outperform the benchmark index by over 20% in the next six months [19]. Core Views - BYD Electronics reported steady performance in Q3 2024, with revenue reaching 43.546 billion RMB, a year-over-year increase of 21.08% [1]. - The company is experiencing robust growth in consumer electronics and automotive electronics, driven by increased sales in new energy vehicles and AI-related products [1]. - The acquisition of Jabil's mobile manufacturing business is expected to enhance BYD's position in the supply chain for major clients like Apple [1]. - Future growth is anticipated in Q4 2024, with multiple business segments entering peak seasons, particularly in AI, consumer electronics, and automotive electronics [1]. Financial Summary - For the first three quarters of 2024, BYD Electronics achieved a total revenue of 122.127 billion RMB, representing a year-over-year growth of 32.54% [1]. - The net profit attributable to shareholders for the same period was 3.063 billion RMB, a slight increase of 0.64% year-over-year [1]. - The Q3 2024 revenue was 43.546 billion RMB, with a net profit of 1.546 billion RMB, reflecting a year-over-year increase of 1.15% [1]. - Revenue projections for 2024-2026 are 168.913 billion RMB, 189.207 billion RMB, and 222.412 billion RMB, respectively, with expected growth rates of 29.5%, 12.0%, and 17.5% [2]. - The net profit forecast for 2024-2026 is 4.518 billion RMB, 6.138 billion RMB, and 7.615 billion RMB, with growth rates of 11.8%, 35.9%, and 24.1% [2].

Financial Performance - Revenue for the quarter increased by 15% compared to the same period last year [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new international markets, contributing to a 20% increase in global sales [4]. - A new distribution partnership was established in Europe, expected to boost market share by 5% in the next fiscal year [1]. Product Development - Launched three new products, which accounted for 25% of total revenue this quarter [2]. - R&D spending increased by 10% to support ongoing innovation and product enhancements [3]. Operational Efficiency - Implemented new cost-saving measures that reduced production costs by 5% [4]. - Streamlined supply chain operations, resulting in a 15% reduction in delivery times [1]. Strategic Partnerships - Formed a strategic alliance with a leading tech company to co-develop next-generation products [2]. - Signed a long-term agreement with a major supplier to secure raw materials at favorable rates [3]. Customer Engagement - Customer satisfaction scores improved by 10% due to enhanced service and support initiatives [4]. - Launched a new loyalty program that increased repeat customer purchases by 18% [1]. Regulatory Compliance - Achieved full compliance with new industry regulations, avoiding potential fines and penalties [2]. - Invested in training programs to ensure all employees are up-to-date with the latest compliance requirements [3]. Sustainability Initiatives - Reduced carbon emissions by 12% through the adoption of renewable energy sources [4]. - Implemented a company-wide recycling program that diverted 30% of waste from landfills [1]. Employee Development - Introduced a new professional development program, resulting in a 20% increase in employee certifications [2]. - Enhanced employee benefits, including a 10% increase in health insurance coverage [3]. Technology Integration - Upgraded IT infrastructure, improving system reliability and reducing downtime by 25% [4]. - Deployed advanced analytics tools to enhance decision-making and operational efficiency [1].

Investment Rating - The report maintains a "Buy" rating for BYD Electronics, with a target price of HKD 44, indicating a potential upside of 53.3% from the current price of HKD 28.7 [2]. Core Insights - BYD Electronics has shown stable growth in consumer electronics and automotive electronics, with promising prospects in new businesses such as servers [2]. - The company reported a net profit of RMB 1.518 billion for the first half of 2024, with total revenue reaching RMB 78.58 billion, a year-on-year increase of 39.9% [2]. - The acquisition of Jabil's Chengdu and Wuxi factories has positively impacted the consumer electronics segment, which generated RMB 63.3 billion in revenue, up 54.22% year-on-year [2]. - The automotive business continues to expand, with revenue of RMB 7.757 billion, reflecting a growth of 26.48% [2]. - The report anticipates revenue growth of 31%, 9.7%, and 10.6% for the years 2024, 2025, and 2026, respectively, with net profits projected to grow by 13%, 31.7%, and 18% during the same period [2]. Financial Summary - Total revenue for the fiscal year ending December 31, 2022, was RMB 107.19 billion, with a projected increase to RMB 206.85 billion by 2026, reflecting a compound annual growth rate (CAGR) of approximately 20.4% [4]. - Net profit for 2022 was RMB 1.86 billion, expected to rise to RMB 7.10 billion by 2026, indicating a significant growth trajectory [4]. - The report highlights a decrease in gross margin to 6.85% due to changes in product mix and increased financial costs from acquisitions [2]. - The company’s earnings per share (EPS) is projected to grow from RMB 0.82 in 2022 to RMB 3.15 by 2026 [4]. - The dividend payout ratio is expected to stabilize around 30% from 2024 onwards, with dividends per share increasing from RMB 0.165 in 2022 to RMB 0.945 by 2026 [4].

浦银国际研究 公司研究 | 科技行业 浦银国际 公司研究 比亚迪电子 （285.HK） 比亚迪电子（285.HK）：下半年利润有 望进一步释放 重申"买入"评级，下调目标价至 34.2 港元，潜在升幅 19%。 重申比亚迪电子的"买入"评级：比亚迪电子今年下半年的利润有 望进一步的释放。主要的驱动力来自于：1）安卓手机，尤其是高 端手机的需求增长，2）捷普并表带来的利润增长，3）国际客户业 务体量增长带来的利润，4）汽车电子增长带来的贡献。展望 2025 年，这四大驱动力有望延续。而且，公司布局的 AI 服务器业务有 望在今明两年开始放量。比亚迪电子将在智能手机、新能源车等终 端需求上行周期中，提升资产利用率，从而带动利润趋势向上。我 们预期比亚迪电子在 2024 年、2025 年净利润将达到 40.6 亿元、 47.0 亿元，对应 17.3x、14.9x 目标价市盈率，目标估值具备吸引力。 二季度及上半年业绩回顾：在今年二季度，比亚迪电子收入为 421 亿元，同比增长 41%，环比增长 15%；毛利率为 6.8%，同比下降 1.2 个百分点，环比下降 0.1 个百分点；净利润为 9.07 亿元，同比下降 1 ...

Investment Rating - The report maintains a "Buy" rating for BYD Electronics (0285.HK) with a target price of 28.70 HKD, indicating an expected return exceeding 15% over the next 6-12 months [3][9]. Core Insights - The company's revenue for the first half of 2024 reached 78.581 billion RMB, a year-on-year increase of 39.87%, while the net profit was 1.518 billion RMB, slightly below Bloomberg consensus estimates [2]. - The consumer electronics segment saw significant growth, driven by increased demand for high-end Android smartphones and the consolidation of Jabil, leading to a 54.22% year-on-year revenue increase [2]. - The new energy vehicle (NEV) business also showed growth, with revenue rising 26.48% year-on-year, supported by increased sales and the introduction of new products [2]. Summary by Sections Financial Performance - Revenue for 2024 is projected at 173.143 billion RMB, with a growth rate of 33.2% [6]. - Net profit estimates for 2024 have been revised down by 17% to 4.281 billion RMB due to lower-than-expected growth in the NEV segment and pressure on the energy storage business [2][6]. Business Segments - Consumer Electronics: Revenue increased to 63.303 billion RMB, with structural components growing by 205.08% [2]. - New Energy Vehicles: Revenue reached 7.757 billion RMB, with expectations for continued double-digit growth due to new product introductions [2]. Market Outlook - The report highlights a positive long-term growth trend in the NEV sector, despite short-term challenges in the energy storage business [2]. - The company is focusing on AI and smart product development, with a strategic partnership with NVIDIA to enhance its offerings in AI data centers [2].

Investment Rating - The report maintains a "Buy" rating for BYD Electronics (0285.HK) [2] Core Views - The company's performance in the first half of 2024 was slightly below expectations, with revenue of 78.58 billion RMB, a year-on-year increase of 39.9%, and a net profit of 1.52 billion RMB, a year-on-year increase of only 0.14% [2] - The decline in overall gross margin is attributed to changes in product structure and a decrease in revenue from high-margin new smart products [2][3] - The consumer electronics and automotive electronics segments are experiencing rapid growth, benefiting from the recovery in the consumer electronics market and increased sales of BYD vehicles [3] - The new smart products segment is facing challenges due to a decline in household storage revenue, but there is potential for growth in AI server products [3][4] Summary by Sections Financial Performance - For H1 2024, the company reported total revenue of 78.58 billion RMB, with a gross profit of 5.38 billion RMB and a net profit of 1.52 billion RMB [2] - The overall sales gross margin decreased by 1 percentage point to 6.85% [2] - The second quarter of 2024 saw revenue of 42.1 billion RMB, a year-on-year increase of 41.3% [2] Business Segments - The consumer electronics business grew by 54.22% to 63.30 billion RMB, with component revenue from Jabil's consolidation increasing by 205.8% [3] - The automotive electronics segment reported a revenue increase of 26.48% to 7.76 billion RMB, driven by the growth in new energy vehicle sales [3] Future Outlook - The company is focusing on AI server products and has formed partnerships to enhance its offerings in this area [3][4] - The forecast for net profit for 2024, 2025, and 2026 has been slightly adjusted to 45.07 billion RMB, 58.1 billion RMB, and 72.25 billion RMB respectively [4]