HK Stock Market Move | BYD ELECTRONIC (00285) rose over 7% as the peak season for major customers approaches, coupled with a gradual increase in liquid cooling capacity. Morgan Stanley is optimistic about the subsequent improvement in performance.

BYD ELECTRONIC (00285) rose more than 7%, and as of the time of writing, it was up 6.76% at HKD 26.86, with a transaction volume of HKD 410 million. In terms of news, in the first half of this year, BYD ELECTRONIC achieved revenue of CNY 82.234 billion, a slight increase of 2.02% year-on-year; net profit attributable to the parent company was CNY 426 million, a year-on-year decline of 75.35%. The pressure on profits was mainly due to a temporary decline in the smart terminal components business and foreign exchange losses. Morgan Stanley noted that as the peak season for major clients approaches and the production capacity of liquid cooling products gradually increases, there is a strong likelihood of improved quarterly performance in the second half of the year. DBS indicated that BYD ELECTRONIC is shifting from a mobile phone-centric EMS model to higher-value liquid cooling, power supply, and automotive electronics businesses. The companys latest generation liquid cooling plate project has entered mass production, with several models of servers already being shipped in volume. Although AI infrastructure is currently still inadequate to offset the pressure on the smart terminal business for the 2026 fiscal year, it can provide a clearer growth path.