CICC: Maintains BYD ELECTRONIC (00285) with a "outperform industry" rating, target price of HK$50.

Zhongjin released a research report stating that due to the slower-than-expected volume of some products, BYD ELECTRONIC (00285) has lowered its net profit attributable to shareholders for 2025/2026 by 12%/6% to 4.323 billion yuan/5.798 billion yuan. The current stock price corresponds to a P/E ratio of 17x/13x for 2025/2026. The bank is optimistic about the company's long-term layout in the field of AI, maintaining an outperform industry rating and a target price of HK$50.00. The company's revenue for the first three quarters was 123.3 billion yuan, up 0.95% year-on-year; net profit attributable to shareholders was 3.14 billion yuan, up 2.4% year-on-year. Revenue for the quarter was 42.68 billion yuan, down 2% year-on-year and quarter-on-quarter; net profit attributable to shareholders was 1.41 billion yuan, down 9% year-on-year and up 27% quarter-on-quarter. The performance meets the bank's expectations. The report mentioned that BYD ELECTRONIC's smartphone components have remained stable with a slight decrease, while the value of new energy vehicles per vehicle has increased. In 3Q25, the company's revenue declined by 2% year-on-year. In terms of business segments, the bank judged that the consumer electronics components business may remain stable with a slight decrease year-on-year, mainly due to delays in shipments of new phones by major customers. Jiepu's assembly business overall remained stable. With the gradual increase in the value per vehicle in the areas of cabin, thermal management, suspension, and intelligent driving, the new energy vehicle business continues to steadily expand, while the new intelligent products are under pressure due to some product adjustments. The bank is optimistic about the company's accelerated layout in AI data centers and AISiasun Robot & Automation, continuously expanding its capabilities. In the field of AI data centers, the company has been continuously shipping AI servers, and data center liquid cooling and power products have also been certified by leading industry enterprises. With the increase in demand for liquid cooling and power due to the GB300 cabinet shipment and the increase in power consumption of the next-generation cabinets, the bank expects the company's AI data center business to accelerate its development. In addition, in the field of AISiasun Robot & Automation, the company has started using intelligent logistics Siasun Robot & Automation on a large scale within the group, helping to improve warehouse and distribution efficiency.