Investment Rating - The report maintains a "Buy" rating for BYD Electronics (0285.HK) [2] Core Views - The company's performance in the first half of 2024 was slightly below expectations, with revenue of 78.58 billion RMB, a year-on-year increase of 39.9%, and a net profit of 1.52 billion RMB, a year-on-year increase of only 0.14% [2] - The decline in overall gross margin is attributed to changes in product structure and a decrease in revenue from high-margin new smart products [2][3] - The consumer electronics and automotive electronics segments are experiencing rapid growth, benefiting from the recovery in the consumer electronics market and increased sales of BYD vehicles [3] - The new smart products segment is facing challenges due to a decline in household storage revenue, but there is potential for growth in AI server products [3][4] Summary by Sections Financial Performance - For H1 2024, the company reported total revenue of 78.58 billion RMB, with a gross profit of 5.38 billion RMB and a net profit of 1.52 billion RMB [2] - The overall sales gross margin decreased by 1 percentage point to 6.85% [2] - The second quarter of 2024 saw revenue of 42.1 billion RMB, a year-on-year increase of 41.3% [2] Business Segments - The consumer electronics business grew by 54.22% to 63.30 billion RMB, with component revenue from Jabil's consolidation increasing by 205.8% [3] - The automotive electronics segment reported a revenue increase of 26.48% to 7.76 billion RMB, driven by the growth in new energy vehicle sales [3] Future Outlook - The company is focusing on AI server products and has formed partnerships to enhance its offerings in this area [3][4] - The forecast for net profit for 2024, 2025, and 2026 has been slightly adjusted to 45.07 billion RMB, 58.1 billion RMB, and 72.25 billion RMB respectively [4]
比亚迪电子：产品结构调整导致毛利率下滑，AI服务器与端侧前景大好