HK Stock Market Move | BYD ELECTRONIC (00285) rose more than 3%, Goldman Sachs is optimistic about its transition to the component business, raising its target price to HK$58.46.

BYD ELECTRONIC (00285) rose more than 3%, up 3.69% to 56.25 Hong Kong dollars as of the time of writing, with a trading volume of 1.776 billion Hong Kong dollars. On the news front, on February 10th, BYD Company Limited officially launched its high-end intelligent driving system "Tian Shen Zhi Yan". All models of BYD Company Limited will be equipped with this system, with the first batch of 21 models being released. In addition, the company announced that the Xuanji architecture will be fully integrated with DeepSeek to enhance its AI capabilities. Goldman Sachs released a research report stating that due to the NOA and intelligent driving trends of its parent company BYD Company Limited, as well as the expansion of its own product line, it is expected that BYD ELECTRONIC's revenue contribution from smartphone metal frames and automotive electronics will increase from 11% in 2023 to 26%/36%/40% in the second half of 2024/2025/2026. Goldman Sachs maintains its 2024 forecast for BYD ELECTRONIC and raises its net income for 2025-2027 by 15%/2%/1% respectively, mainly due to the increase in revenue and gross profit margin, reflecting the positive view on the group's expansion into the parts business. Its target price also increased by 15% from 51.02 Hong Kong dollars to 58.46 Hong Kong dollars. The rating is maintained as "buy". Huatai pointed out that with the continuous growth in global demand for AI computing power and the development of trends in intelligent terminal industries such as Siasun Robot&Automation, the company's "data center+Siasun Robot&Automation" business may become the next growth highlight.