Investment Rating - The report maintains a "BUY" rating for BYDE with a target price of HK$45.28, indicating a potential upside of 53.5% from the current price of HK$29.50 [3][10]. Core Insights - BYDE reported a strong revenue growth of 40% YoY in 1H24, driven by gains in Apple market share, recovery in Android, consolidation of Jabil, and robust demand in the NEV segment. However, net profit growth was only 0.1% YoY, falling short of estimates due to a decline in gross profit margin and a significant increase in selling expenses [2][6]. - The outlook for 2H24 is positive, with expectations of continued momentum from iPhone/iPad upgrades, resilient Android demand, and contributions from new product launches in NEV and AI server segments [2][10]. Financial Summary - Revenue is projected to grow from RMB 129,957 million in FY23A to RMB 171,957 million in FY24E, reflecting a YoY growth of 32.3% [1]. - Net profit is expected to increase from RMB 4,041.4 million in FY23A to RMB 5,063.1 million in FY24E, representing a YoY growth of 25.3% [1]. - The report highlights a decline in gross profit margin to 6.8% in 1H24, down 1 percentage point YoY, while selling expenses surged by 211% YoY to RMB 902 million [2][6]. Segment Performance - BYDE's revenue breakdown for 1H24 shows assembly sales grew by 33.3% YoY, while component sales surged by 205.8% YoY, indicating strong performance across segments [6]. - The NEV segment is expected to contribute significantly to revenue growth, supported by new product launches and a favorable market environment [2][10]. Valuation Metrics - The report assigns a target P/E of 18.3x for FY24E, with specific P/E multiples of 15x for assembly and component businesses, and 20x for new intelligent and NEV segments, reflecting their growth potential [10][8]. - The current P/E is noted at 12.0x for FY24E, indicating a favorable valuation compared to peers [9].
比亚迪电子：1H24 first take： strong revenue growth dragged by GPM and selling expenses