CICC has released a research report stating that due to slower-than-expected ramp-up of certain products, it has lowered BYD ELECTRONIC's (00285) 2025/2026 net profit attributable to shareholders by 12%/6% to RMB4.323 billion/RMB5.798 billion. The current stock price implies 17x/13x 2025/2026 P/E. The firm remains optimistic about the company's long-term AI sector expansion, maintaining an "Outperform" rating and a target price of HK$50.

In the first three quarters, the company reported revenue of RMB123.3 billion, up 0.95% YoY, and net profit attributable to shareholders of RMB3.14 billion, up 2.4% YoY. For the single quarter, revenue stood at RMB42.68 billion, down 2% YoY and 2% QoQ, while net profit attributable to shareholders was RMB1.41 billion, down 9% YoY but up 27% QoQ. The results were in line with expectations.

The report noted that BYD ELECTRONIC's mobile components business remained stable with a slight decline, while per-vehicle value in the new energy vehicle (NEV) segment improved. In Q3 2025, revenue fell 2% YoY, with the consumer electronics components segment likely showing modest declines due to delayed shipments of certain new models from major clients. The Jabil assembly business remained stable overall. Meanwhile, the NEV business continued steady expansion as the company increased per-vehicle value in four key areas: smart cabins, thermal management, suspensions, and autonomous driving. The new smart products segment faced slight pressure due to product adjustments.

CICC is optimistic about the company's accelerated deployment in AI data centers and AI robotics, which will further expand its capabilities. In the AI data center sector, BYD ELECTRONIC has announced continuous shipments of AI servers, with its liquid cooling and power supply products already certified by industry leaders. With the ramp-up of GB300 racks and growing demand for liquid cooling and power solutions driven by higher power consumption in next-gen racks, the firm expects the AI data center business to accelerate. Additionally, in AI robotics, the company has begun large-scale deployment of smart logistics robots within its group manufacturing operations, improving warehouse and distribution efficiency.