Core Viewpoint - BYD Electronics' revenue and gross margin for the first half of the year fell short of expectations, but net profit exceeded market forecasts, primarily influenced by the smartphone business, offset by strong growth in AIS revenue and a decrease in R&D expenses [1] Group 1: Financial Performance - Revenue and gross margin were below expectations for the first half of the year [1] - Net profit surpassed market expectations [1] - Strong growth in AIS revenue and reduced R&D spending helped mitigate the impact of the smartphone business [1] Group 2: Future Outlook - The company is expected to have better visibility next year due to potential adoption of titanium alloy casing in foldable iPhones, providing better product growth opportunities [1] - Rapid growth in server OEM, liquid cooling, and power sectors, especially in overseas markets, will benefit the company [1] Group 3: Investment Rating - The firm maintains a "Buy" rating for BYD Electronics, raising the target price from HKD 40.9 to HKD 52.2 [1]