Core Viewpoint - Bank of China International reports that BYD Electronics (00285) underperformed in revenue and gross margin for the first half of the year, but net profit exceeded market expectations, primarily influenced by the smartphone business, offset by strong AIS revenue growth and reduced R&D expenses [1] Group 1: Financial Performance - BYD Electronics' revenue and gross margin were below expectations for the first half of the year [1] - Net profit surpassed market expectations, indicating resilience despite challenges in the smartphone sector [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, presenting growth opportunities [1] - Rapid growth in server OEM, liquid cooling, and power sectors, particularly in overseas markets, is anticipated to benefit the company [1] Group 3: Analyst Rating - Bank of China International maintains a "Buy" rating for BYD Electronics and raises the target price from HKD 40.9 to HKD 52.2 [1]