Bank of America Securities: Lower BYD ELECTRONIC (00285) target price to 31.5 Hong Kong dollars, maintain "Neutral" rating

Bank of America Securities released a research report stating that BYD ELECTRONIC (00285) performed below expectations in the second half of last year, with net profit falling by 35% year-on-year to 1.8 billion RMB, 34% lower than the bank's and market's forecasts. Although revenue roughly met expectations, the gross profit margin was 1.6 and 1.8 percentage points lower than the bank's and market's forecasts. The bank lowered BYD ELECTRONIC's profit forecast for 2026 and 2027 by 20% to 21% to reflect pressure on the gross profit margin of the consumer electronics business, with the target price lowered from HK$38 to HK$31.5, equivalent to a forecast price-to-earnings ratio of 14 times this year, maintaining a neutral rating.