BOCI Securities: Maintains a "buy" rating for BYD Electronic (00285) with a target price lowered to HK$38.7

Bank of China International released a research report stating that BYD ELECTRONIC (00285) will have lower revenue and gross profit margin in the second half of 2025 than expected by the bank, mainly due to the weak performance of its component business (especially metal casings). Management expects that, due to a decrease in demand in the smart terminal sector, partially offset by strong mass production of AI servers, revenue will remain flat in 2026. Considering the short-term headwinds in the consumer electronics business, Bank of China International has lowered its revenue forecasts for BYD ELECTRONIC for the next two years by 7% and 7%, and lowered its earnings per share forecast by 29% and 24%. The rating remains "buy" with the target price revised from HK$45.5 to HK$38.7, equivalent to a forecasted P/E ratio of 15 times in 2027.