HK Stock Market Move | BYD ELECTRONIC (00285) is now up nearly 6%, with multiple factors expected to drive the company's profit growth as consumer electronics subsidies are being rolled out in many regions.
24/12/2024
GMT Eight
BYD ELECTRONIC (00285) is now up nearly 6%, as of the time of writing, up 5.7% at HK$41.75, with a turnover of HK$4.38 billion.
On the news front, a relevant official from the Central Financial Office said that the "two new" policy has been very effective this year, and efforts will be increased next year to expand the scope, allocate more funds, include more consumer goods in the support range, and optimize the subsidy distribution process. It is reported that on November 26, Jiangsu issued the "Jiangsu Province Increasing Policy 3C Digital Product Subsidy Special Activity Operation Guidelines"; on December 12, Sichuan also began organizing 25-year-old household appliances and 3C old-for-new replacement participating companies to apply for registration. Morgan Stanley said that for OEM and supply chain companies in the smartphone industry, subsidy policies will be a short-term positive catalyst, and they believe that BYD ELECTRONIC will be a major beneficiary.
Citi International pointed out that in the consumer electronics supply chain, BYD ELECTRONIC is preferred. The company's consolidation of Jiepu, large customer tablet assembly, recovery of Android business, and rapid growth in automotive electronics this year will all drive the company's profit growth, with high certainty. Furthermore, as a Hong Kong stock target, BYD ELECTRONIC may enjoy a revaluation from a relatively low valuation position.