Investment Rating - The report maintains a "BUY" rating for BYDE with a target price of HK$45.28, implying a potential upside of 47.3% from the current price of HK$30.75 [2][3][11] Core Insights - BYDE is expected to report solid growth in 1H24, with estimated revenue and net profit growth of 32% and 26% respectively, driven by iPad share gains, Android recovery, and stable NEV components sales [2][11] - The company has revised its FY24-26 EPS estimates down by 6% primarily due to a weaker gross profit margin (GPM) [2][11] - The stock is currently trading at attractive multiples of 12.7x and 9.3x FY24 and FY25 estimated P/E ratios [2][11] Summary by Sections Consumer Electronics - Revenue from smartphone OEM/component business is projected to increase by 39% in 1H24 and 36% in 2H24, driven by iPad share gains and the iPhone cycle [2] - iPad revenue is expected to grow by 53% in 1H24 and 28% in 2H24, with market share projected to reach 50% in FY24 [2][6] - GPM for assembly is expected to improve slightly to 2.5% in 1H24 and 2.6% in 2H24, while component GPM is projected at 14.3% and 14.7% for the same periods [2] Automotive - Automotive revenue is expected to grow by 38% YoY in FY24, driven by strong Parentco shipments and new high-end product ramp-up [2][6] - The ASP for automotive products is anticipated to grow by 20% YoY, contributing to overall revenue growth [2] New Intelligent Products - AI server business is expected to generate RMB1 billion in revenue in FY24, offsetting weaknesses in the household energy storage segment [2] - The report expresses optimism about the AI server business delivering rapid growth in FY25-26 due to next-gen products in development with Nvidia [2] Earnings Summary - For FY24, revenue is estimated at RMB171.96 billion, with a YoY growth of 32.3% [3][6] - Net profit for FY24 is projected at RMB5.06 billion, reflecting a 25.3% YoY growth [3][6] - EPS for FY24 is estimated at RMB2.25, which is 1-9% above consensus estimates [2][6] Valuation - The new target price of HK$45.28 is based on a sum-of-the-parts (SOTP) valuation, reflecting BYDE's diversified business model [11] - The report assigns a target P/E of 15x for assembly and component businesses, and 20x for new intelligent and NEV segments, indicating their growth potential [11]
比亚迪电子：1H24E preview: Expect solid growth on iPad/iPhone cycle, Android recovery and NEV orders