CICC issued a research report, revising down its projections for BYD Electronic's net profit attributable to the parent entity for 2025 and 2026 by 12% and 6% respectively, bringing the figures to RMB 4.323 billion and RMB 5.798 billion. This adjustment stems from certain product shipments not meeting initial expectations. At present, the stock price translates to Price-to-Earnings (P/E) ratios of 17 times for 2025 and 13 times for 2026. CICC holds a positive outlook on BYD Electronic's enduring strategic positioning within the AI landscape (here, while "strategic layout" was initially translated as "strategic", the concept of "layout" is retained for its broader strategic connotations) and thus, reaffirms its "Outperform Industry" rating along with a target price of HK$50.0.
In the first three quarters, BYD Electronic recorded a revenue of RMB 123.3 billion, marking a 0.95% increase year-on-year. Its net profit attributable to the parent company reached RMB 3.14 billion, reflecting a 2.4% uptick year-on-year. On a quarterly basis, revenue stood at RMB 42.68 billion, experiencing a 2% decline year-on-year but remaining relatively stable sequentially. The net profit attributable to the parent company amounted to RMB 1.41 billion, showing a 9% decrease year-on-year yet a 27% surge sequentially, aligning with CICC's forecasts.