Investment Rating - The report maintains a "Buy" rating for BYD Electronics with a target price of HKD 36.7, indicating a potential upside of 28% [6][9]. Core Insights - The performance growth of BYD Electronics is expected to be stable over the next two years, driven by the acquisition of Jabil and the high growth of automotive electronics [7]. - The smartphone market is anticipated to see a mild recovery, with expected shipment growth of 0%-5%, which will support the stability of the components business [7]. - Net profit for BYD Electronics is projected to grow by 16% in 2024 and 21% in 2025 [7]. Financial Performance - In 2023, BYD Electronics achieved a net profit of RMB 4.04 billion, a year-on-year increase of 118%, aligning with previous profit forecasts [7]. - The fourth quarter revenue reached RMB 37.8 billion, reflecting a 5% year-on-year and quarter-on-quarter growth [7]. - The gross margin recorded was 6.7%, with a year-on-year increase of 0.5 percentage points, although it decreased by 3 percentage points quarter-on-quarter due to a higher proportion of assembly business [7]. Key Business Segments - International major clients accounted for 48% of revenue in 2023, with the acquisition of Jabil expected to deepen collaboration and provide long-term growth [7]. - The automotive electronics segment, including smart cockpit products, continues to grow rapidly, with new categories like smart suspension being introduced [7]. - BYD Electronics is positioned as a strategic partner for AI server companies, with initial AI server deliveries expected in April [7]. Financial Projections - Revenue for 2024 is estimated at RMB 169.8 billion, with a growth rate of 30.7%, and for 2025, it is projected at RMB 178.6 billion, with a growth rate of 5.2% [12]. - The net profit for 2024 is forecasted to be RMB 4.68 billion, with a growth rate of 15.9%, and for 2025, it is projected at RMB 5.65 billion, with a growth rate of 20.7% [12]. - The report slightly adjusts the revenue forecast for 2025 downwards while raising the net profit forecast, maintaining overall earnings predictions for 2024 and 2025 [7].
并表业务贡献可持续增量，汽车电子高速成长