Core Viewpoint - BYD Electronics (00285) reported a 2% year-on-year decline in revenue for Q3, totaling 42.7 billion RMB, which was below expectations due to weak component business and impact from smart product operations [1] Financial Performance - Revenue for Q3 was 42.7 billion RMB, down 2% year-on-year [1] - Gross margin decreased to 6.9%, a drop of 1.6 percentage points year-on-year and 0.5 percentage points quarter-on-quarter, primarily due to reduced high-margin component sales and an increase in low-margin assembly business [1] - Net profit for the period was 1.4 billion RMB, reflecting a 9% year-on-year decline but a 27% increase quarter-on-quarter, slightly below expectations [1] Target Price and Rating - The target price has been revised down from 52 HKD to 47 HKD, while maintaining a "Buy" rating [1] - The company is believed to be in a transformation phase towards becoming a comprehensive component and assembly supplier, with an expected increase in sales from high-tech businesses like servers starting in 2026 [1]