Core Viewpoint - BYD Electronics (00285) is adjusting its product mix, with an increase in contributions from the automotive business, but this is offset by underperformance in the components business, leading to an overall gross margin below expectations [1] Group 1: Business Performance - The automotive business is showing an upward contribution, indicating a positive trend in this segment [1] - The components business is performing below expectations, which negatively impacts the overall financial performance [1] Group 2: Future Outlook - The growth outlook for the second half of the year and beyond remains solid, driven by the momentum from the launch of the new foldable iPhone [1] - The AI server business is expected to continue benefiting from the widespread adoption of liquid cooling technology [1] Group 3: Analyst Rating - The firm maintains a "Buy" rating for BYD Electronics, with the target price raised from HKD 41.2 to HKD 51.8 [1]