Core Viewpoint - Citi has lowered the target price for BYD Electronics to HKD 38.9, while also reducing profit forecasts for the current and next fiscal years due to a slowdown in high-margin metal casing demand [1] Group 1: Financial Performance - BYD Electronics' net profit for Q1 2025 is expected to grow only 2% year-on-year, primarily due to a high base effect from last year [1] - The company management anticipates a quarter-on-quarter increase in metal casing revenue in Q2, maintaining an optimistic outlook for the year driven by strong growth in the automotive sector and improved profitability from Jabil-related businesses [1] Group 2: Market Outlook - The impact of tariffs is expected to be limited due to overseas production capabilities [1] - Despite short-term weakness in metal casing demand, BYD Electronics' growth prospects for FY 2025 to FY 2027 remain solid, supported by robust automotive revenue growth and Jabil's financial performance [1] Group 3: Earnings Forecast Adjustments - Citi has revised its earnings forecasts for BYD Electronics downwards by 9% and 8% for FY 2025 and FY 2026, respectively [1]