Investment Rating - The investment rating for BYD Electronics is maintained as "Buy" with a target price of HKD 45.50 [3][9]. Core Insights - BYD Electronics reported a revenue of RMB 43.5 billion for Q3 2024, representing a year-on-year increase of 21% and a quarter-on-quarter increase of 3%. The gross margin improved to 8.5%, which is better than the company's previous guidance of 7-8% for the second half of 2024. The net profit attributable to shareholders was RMB 1.55 billion, up 1% year-on-year and 70% quarter-on-quarter [6][7][9]. Summary by Sections Financial Performance - Q3 2024 revenue reached RMB 43.5 billion, with a year-on-year growth of 21% and a quarter-on-quarter growth of 3%. The gross margin was 8.5%, showing a year-on-year decrease of 1.2 percentage points but a quarter-on-quarter increase of 1.7 percentage points [6][7]. - The net profit attributable to shareholders for Q3 2024 was RMB 1.55 billion, reflecting a year-on-year increase of 1% and a quarter-on-quarter increase of 70% [6][7]. Growth Drivers - The revenue growth in Q3 2024 was primarily driven by seasonal stocking from major North American clients and growth in the automotive business. The revenue structure is expected to improve further in Q4 2024 as new flagship models are launched [6][8]. - The company anticipates long-term growth to be driven by three main areas: North American client business, automotive business, and data center business, with a focus on expanding product offerings in collaboration with its parent company [8][9]. Valuation and Forecast - The target price of HKD 45.50 is based on a 2025E PE ratio of 17.44x, which is higher than the comparable company average of 15.64x, reflecting the company's enhanced position in the Apple supply chain. Expected net profits for 2024-2026 are RMB 42.4 billion, RMB 53.9 billion, and RMB 58.8 billion, respectively [9][10].
比亚迪电子：3Q毛利率修复好于预期