HK Stock Market Move | BYD ELECTRONIC (00285) Falls Over 4% Again; Q3 Results Below Expectations, Continued Weak Android Demand May Weigh on Product Pull-in

BYD ELECTRONIC (00285) fell over 4% again, down 4.5% as of press time to HK$20.82, with turnover of HK$76.4783 million. On the news front, BYD ELECTRONIC recently disclosed its third-quarter results. BofA Securities noted in a research report that BYD ELECTRONIC's third-quarter profit was RMB537 million (same unit below), up 35% quarter-on-quarter but down 62% year-on-year, with first-nine-month profit reaching only 27% and 43% of the bank's and market expectations, respectively, below expectations; revenue was approximately RMB45 billion, up 3% quarter-on-quarter and up 6% year-on-year, with first-nine-month revenue broadly in line with expectations. Gross margin fell 0.5 percentage points quarter-on-quarter to 4.5%, affected by changes in product mix. The bank said Android demand is expected to remain weak through 2027, potentially weighing on product pull-in; however, artificial intelligence is expected to become a new driver, as the company has begun ramping cold plate capacity for Nvidia, expected to contribute meaningfully from the first quarter of 2027, and the bank holds a positive view on potential participation in ZQD in the second half of 2027, with overall guidance for liquid cooling revenue exceeding RMB1 billion in 2027. In addition, the bank cut its 2026-2028 profit forecasts by 24% to 42% to reflect lower-than-expected margins and intensifying competition in iPhone casings.