Lyon: Downgrade BYD Electronic (00285) target price to HK$48, maintain "outperform" rating.

Lyon released a research report stating that BYD ELECTRONIC (00285) will be affected in the third and fourth quarters of 2025 by changes in metal casing materials of American customers and a slowdown in BYD Company Limited's automobile shipments. However, the bank expects its metal casing business to experience strong growth in 2026, mainly driven by foldable titanium alloy smartphone casings, while shipments of liquid cooling systems and high-voltage DC modules will accelerate the breakthrough in the artificial intelligence server business. The bank believes that BYD ELECTRONIC will continue to achieve sustainable growth with multiple driving factors. It maintains an "outperform" rating, but has lowered profit forecasts for 2025 to 2027 by 8%, 9%, and 10%, with a target price reduced from 52.9 Hong Kong dollars to 48 Hong Kong dollars.