BYD Electronic's stock plummeted 5.05% during intraday trading on Wednesday, extending its recent downtrend.

The sharp decline followed a recent downgrade by Citi to a Sell rating with a target price of 22.6 HKD. The broker cited concerning Q1 financials, where revenue fell 32% quarter-over-quarter, significantly worse than the five-year seasonal average decline of 16%. The performance was dragged down by iPhone seasonality and a weak Android business, while gross margin declined 1.1 percentage points year-over-year to 5.2%.

Management's guidance for flat full-year revenue, with the Android EMS business expected to decline year-over-year, added to investor concerns. Multiple institutions including Bank of America and BOCI have also lowered their target prices, reflecting broad caution toward the consumer electronics sector. Although the company is making inroads into AI server businesses, this new revenue stream remains limited in scale and is unlikely to offset traditional business headwinds in the near term.