Core Viewpoint - The report from Caitong Securities initiates coverage on BYD Electronics, assigning a "Buy" rating due to the rapid growth of the company's new energy vehicle (NEV) business, projecting revenues of 189.5 billion, 208.2 billion, and 228.2 billion yuan for 2025-2027, with adjusted net profits of 5.296 billion, 6.140 billion, and 7.749 billion yuan respectively [1] Group 1: Financial Performance - The company's component business revenue exceeded expectations, while adjusted net profit slightly surpassed institutional forecasts [1] - In the first half of 2025, the company's revenue grew by 2.6% year-on-year to 80.61 billion yuan, which was below the institutional expectation of 85.88 billion yuan [1] - The gross margin was 0.4 percentage points lower than expected, while sales and management expense ratios were both 0.2 percentage points higher than anticipated, and R&D expense ratio was 0.8 percentage points lower than expected [1] - Overall, the adjusted net profit reached 1.73 billion yuan, slightly above the institutional forecast of 1.72 billion yuan [1] Group 2: New Energy Vehicle Business - The NEV business experienced a revenue growth rate of over 60%, with continuous growth in intelligent driving products [1] - In the first half of 2025, the NEV business achieved revenue of 12.45 billion yuan, a year-on-year increase of 60.5%, driven by the growth in shipments of smart cockpit products, intelligent suspension, and an increase in market share for smart driving assistance and thermal management products [1] - The parent company sold 2.146 million NEVs in the first half of 2025, representing a year-on-year growth of 33% [1]

Core Viewpoint - In the first half of 2025, the company achieved revenue of 80.606 billion yuan, a year-on-year increase of 2.58%, and a net profit attributable to shareholders of 1.730 billion yuan, a year-on-year increase of 13.97%, slightly below Bloomberg consensus expectations [1] Group 1: Business Performance - The assembly business revenue was 47.195 billion yuan, a year-on-year decrease of 1.79%, while the components revenue was 13.752 billion yuan, a year-on-year decrease of 9.8% [1] - Automotive electronics revenue reached 12.450 billion yuan, a year-on-year increase of 60.5%, driven by high growth in shipment volumes and increased intelligence levels [2] - Revenue from new intelligent products was 7.209 billion yuan, a year-on-year decrease of 4.15%, with AI server business showing strong growth, surpassing 1 billion yuan in revenue for the first time in half a year [3] Group 2: Future Outlook - The company aims to maintain its leading position in the high-end consumer electronics market, focusing on the next-generation foldable smartphone NPI progress with major clients [1] - The automotive electronics business is expected to maintain high growth in the second half of the year, with smart cockpit, thermal management, and intelligent driving assistance products continuing to see increased shipment volumes [2] - The company anticipates that 2026 will be the first year of large-scale liquid cooling product deployment, potentially leading to explosive growth [3] Group 3: Financial Forecast - Revenue is projected to be 191.063 billion yuan and 218.425 billion yuan for 2025 and 2026, respectively, with year-on-year growth rates of 7.76% and 14.32% [3] - Net profit attributable to shareholders is expected to be 4.764 billion yuan and 6.052 billion yuan for 2025 and 2026, respectively, with year-on-year growth rates of 11.69% and 27.03% [3]