Zhi Tong Cai Jing·2025-11-10 07:41Core Viewpoint - Open Source Securities has revised BYD Electronics' net profit forecasts for 2025-2027 downwards due to an increase in assembly business proportion and delays in AI progress, with the new estimates being 4.3 billion, 5.3 billion, and 6.7 billion yuan respectively, reflecting year-on-year growth of 0%, 23%, and 28% [1] Group 1: Financial Performance - The company's Q3 2025 revenue was 42.68 billion yuan, a year-on-year decline of 2%, primarily due to a drop in new smart product business, which offset growth in consumer electronics [1] - The net profit for Q2 2025 was 1.41 billion yuan, showing a year-on-year decrease of 9%, slightly below expectations, with the gross margin in Q3 2025 declining by 1.6 percentage points to 6.9% [1] Group 2: Future Outlook - For Q4 2025, the company expects revenue and gross margin to remain stable year-on-year, indicating a steady overall performance for the year [2] - The growth in 2026-2027 is anticipated to be driven by several factors, including increased investment in mid-frame production capacity for consumer electronics, significant contributions from new models for major clients, and expansion into home product assembly [2] - The automotive business is expected to grow significantly, benefiting from advancements in smart driving and suspension products, alongside increased promotion efforts for external automotive clients starting in 2025 [2] - New smart products are projected to see order fulfillment in data centers by 2026, with liquid cooling products expected to ramp up production following certification, and power supply products ready for market by 2027 [2]