CICC International: Lower BYD Electronic (00285.HK) target price to HK$47, maintaining "buy" rating.

According to the Zhidao Financial APP, construction Bank International released a research report stating that BYD Electronics (00285.HK) third quarter revenue fell 2% year-on-year to 42.7 billion yuan, lower than the bank's expectations, mainly due to weak component business and the impact of intelligent product business. The gross profit margin was 6.9%, a 1.6 percentage point decrease compared to the same period last year, and a 0.5 percentage point decrease compared to the previous quarter, mainly due to a decrease in high-margin component sales and an increase in the proportion of low-margin assembly business. The net profit for the period was 1.4 billion yuan, a 9% decrease year-on-year, a 27% increase quarter-on-quarter, slightly lower than the bank's expectations. The bank has lowered its target price from 52 Hong Kong dollars to 47 Hong Kong dollars, maintaining a "buy" rating, believing that the company is still in a transformation phase in 2025, moving towards becoming a comprehensive component and assembly supplier and increasing the sales proportion of high-tech businesses such as servers, with results expected to be seen gradually from 2026.