DBS published a research report stating that BYD ELECTRONIC (00285)'s product portfolio continues to undergo adjustments, with automotive business contributions on the rise, though this was offset by components business performance falling short of expectations, resulting in overall gross margins below forecasts. However, the company's growth prospects for the second half of the year and beyond remain solid, primarily benefiting from momentum driven by the launch of new foldable iPhone models, as well as the AI server business expected to continue benefiting from the widespread adoption of liquid cooling technology.

DBS maintains a "Buy" rating on BYD ELECTRONIC, raising the target price from HK$41.2 to HK$51.8.