Morgan Stanley: Downgrades BYD ELECTRONIC (00285) target price to HKD 33, maintains "Overweight" rating.

Morgan Stanley published a report stating that BYD ELECTRONIC (00285) saw a 64% year-on-year decline in net profit for the second quarter, compared to a 96% decline year-on-year in the first quarter. The firm believes that as the peak season for major customers approaches, and with the gradual increase in production capacity for liquid cooling products, it is highly likely that quarterly performance will improve in the second half of the year. Following BYD ELECTRONIC's announcement of its interim results, Morgan Stanley has lowered its earnings forecast for the company by 68%, reducing the target price from HKD 39 to HKD 33, while maintaining an "overweight" rating.