Glonghui, Oct. 18 | Bank of America Securities issued a report stating that it raised the target price of BYD Electronics from HK$39 to HK$45, reaffirming the “buy” rating. Benefiting from factors such as the stability of consumer electronics products and the strong expansion of parent company BYD's product portfolio, Bank of America raised the company's profit forecast for 2023-2025 by 3-17%, reflecting the company's optimistic guidelines and outlook. According to Bank of America, BYD Electronics announced a profit forecast for the first nine months of 2023, which is expected to increase 129%-152% year on year to 2.8-3.1 billion yuan. This means that profit for the third quarter of 2023 is likely to reach a median level of 1.5 billion yuan, up 142% year on year, and 38% quarterly. Its strong growth is due to the growing size of major overseas customers, recent strong Android customer momentum, and strong expansion of new businesses. Bank of America also indicated that BYD Electronics' gross margin began to improve substantially from the first quarter of 2023. The third quarter guidelines prove that the company is facing a strong turning loss into profit; it is expected that the company's sales and profits will expand into the fourth quarter and the next few years.