BYD Electronic's forecasted profit CAGR for 2023 to 2025 is 27.6%, accelerating profit growth helps to maintain higher valuations.
According to the Zhixin Financial APP, Dong-Ea Securities released a research report stating that they give a 'buy' rating to BYD Electronics (00285) with a target price of HKD 42.4. The company announced its first quarter results at the end of April, and the year-on-year increase in revenue and earnings for the first quarter was over 30%, which has increased investors' confidence in its earnings prospects and driven the stock price to outperform the Hang Seng Index by 21 percentage points.
The bank believes that due to the AI smart phone boom, closer cooperation with Apple and NVIDIA, and the continuous increase in the penetration rate of new energy vehicles, the bank expects BYD Electronic's revenue and profits to maintain rapid growth. BYD Electronic's profit compounded annual growth rate (CAGR) from 2014 to 2023 is 16.8%, and the forecasted profit CAGR for 2023 to 2025 is 27.6%, accelerating profit growth helps to maintain higher valuations.