According to a research report, BYD ELECTRONIC (00285) reported an 18% year-on-year decline in profit for the previous year, impacted by lower gross margins in the second half and decreased sales to key smartphone customers. Revenue increased by 1% year-on-year, broadly in line with expectations. Looking ahead to 2026, management anticipates stable revenue growth, driven by smartphone components, higher value content in automotive applications, and strong performance in the AI server business. The financial institution has lowered its earnings per share forecasts for 2026 and 2027 by 9% to 16% and reduced the target price from HK$39.69 to HK$35.8, while maintaining a "Buy" rating.