Citigroup: Gives BYD Electronics a "Neutral" Rating, First Quarter Intelligent Driving Products Did Not Bring Significant Contributions

Citibank released a report stating that BYD Electronics' first-quarter revenue rose 1% year-on-year to 36.88 billion yuan, but fell 33% quarter-on-quarter, worse than the seasonal decline of 18% over the past five years, possibly due to seasonal factors affecting iPhone casings. The quarterly gross profit margin decreased by 0.6 percentage points year-on-year to 6.3%, but increased by 0.4 percentage points quarter-on-quarter, influenced by product mix. The company's quarterly net profit increased by 2% year-on-year to 622 million yuan, only reaching the lower end of some investors' expectations, as smart driving products did not make significant contributions. The bank currently rates BYD Electronics as "neutral" with a target price of 36 Hong Kong dollars.