Jianyin: Raises target price of BYD Electronic (00285.HK) to 38 Hong Kong dollars, maintains "outperform" rating.

According to the financial news app Zhitong Finance, China Construction Bank released a research report stating that BYD Electronics (00285.HK) will experience negative impacts on profit in the second half of 2024 and the first quarter of 2025, mainly due to a decrease in high-end shell demand, JBL integration, and changes in product portfolio, putting pressure on gross profit margin. The bank expects the intelligent product business to achieve significant growth and revenue contribution starting in 2025, driven by data center promotion. Based on the expected decrease in gross profit margin, the bank has lowered its profit forecast for 2025 and 2026 by 21% and 9% respectively; raised the target price from HK$36 to HK$38, and maintained an "outperform" rating.