CMB International lowers the EPS of BYD Electronic (00285) for FY24-26E by 6%.
According to the report released by CMB International on the Zhitong Finance APP, the rating of BYD Electronic (00285) remains a "buy", and the EPS for FY24-26E is adjusted down by 6%, mainly considering the weak gross margin. The EPS forecast of the bank for FY24-26E is 1%-9% higher than the consensus. The stock is currently attractively valued with a target price of HKD45.28.
BYD Electronic will announce its 1H24 performance in August. The bank expects the revenue/net income of 1H24 to increase by 32%/26% YoY, mainly benefiting from the growth of iPad share, the recovery of Android business, the integration of Jeep business, the stable growth of new energy auto parts and new intelligent product business. Looking forward to 2H24/2025, the bank is optimistic about the revenue growth driven by the upgrade cycle of iPad/iPhone, high-end orders of Android, auto orders, and AI server.