Investment Rating - The report maintains a "Strong Buy" rating for BYD Electronics (00285.HK) [1] Core Views - The company achieved stable performance in H1 2024, with revenue of 78.581 billion yuan, a year-over-year increase of 39.87%, and a net profit of 1.518 billion yuan, a slight increase of 0.14% year-over-year. The second quarter saw revenue of 42.1 billion yuan, up 41.25% year-over-year and 15.40% quarter-over-quarter, while net profit was 0.907 billion yuan, down 14.14% year-over-year but up 48.59% quarter-over-quarter [1] - The growth in revenue is driven by the rapid expansion of consumer electronics and automotive electronics, while the energy storage business and financial costs from the acquisition of Jabil have impacted H1 2024 performance [1] - The report anticipates a promising H2 2024, with multiple business segments entering peak seasons, including AI, consumer electronics, and automotive electronics [1] Summary by Relevant Sections Financial Performance - In H1 2024, BYD Electronics reported total revenue of 78.581 billion yuan, with consumer electronics revenue at 63.303 billion yuan (up 54.22% year-over-year), automotive electronics revenue at 7.757 billion yuan (up 26.48% year-over-year), and new intelligent products revenue at 7.521 billion yuan (down 16.43% year-over-year) [1] - The company’s net profit for H1 2024 was 1.518 billion yuan, with Q2 net profit at 0.907 billion yuan [1] Business Segments - AI business is progressing well, with cloud-side collaborations and partnerships with Nvidia, including the development of autonomous mobile robots and deepening cooperation in autonomous driving [1] - Consumer electronics segment is benefiting from the integration of iPad components and the acquisition of Jabil, which enhances relationships with major clients [1] - Automotive electronics are expanding with continuous growth in sales from the parent company, BYD Group, and the introduction of new products such as intelligent suspension systems [1] Investment Outlook - The report projects net profits for the company to reach 5.069 billion yuan in 2024, 7.063 billion yuan in 2025, and 8.231 billion yuan in 2026, with a target price of 49.40 HKD based on a 20x PE ratio for 2024 [1][2]
比亚迪电子：2024年半年报点评：24H1业绩平稳，AI&消费电子&汽车电子齐发力24H2可期