BOC International issued a research report stating that BYD Electronic (00285) recorded first-half revenues and gross margins that fell short of expectations, though net profit exceeded market expectations. The performance was primarily impacted by the smartphone business, but this was offset by robust AIS revenue growth and declining research and development expenses. The firm maintains a "Buy" rating on BYD Electronic and raises its target price from HK$40.9 to HK$52.2. The firm believes BYD Electronic will have better visibility next year, as foldable iPhones may potentially adopt titanium alloy casings, providing the company with enhanced product growth opportunities. Additionally, the rapid growth in server OEM, liquid cooling, and power businesses, particularly in overseas markets, will also benefit the company.