Bank of America Merrill Lynch: Downgrade BYD Electronic target price to 31.5 Hong Kong dollars, maintain "neutral" rating.

Sina Finance reported on March 31 that Bank of America Securities published a research report stating that BYD Electronic's performance in the second half of last year was below expectations, with a net profit falling by 35% year-on-year to 1.8 billion yuan, which was 34% lower than the bank's and market's forecasts respectively; revenue roughly met expectations, but gross profit margin was 1.6 and 1.8 percentage points lower than the bank's and market's forecasts. The bank lowered BYD Electronic's profit forecast for 2026 and 2027 by 20% to 21% to reflect pressure on the gross profit margin of its consumer electronics business, with the target price lowered from 38 Hong Kong dollars to 31.5 Hong Kong dollars, equivalent to a forecasted P/E ratio of 14 times for this year, maintaining a "neutral" rating.