BYD ELECTRONIC (00285) dropped over 3% again, declining 3.24% to HK$34.06 by the time of writing, with a turnover of HK$53.5678 million.

The company recently released its Q3 2025 financial results. CEB International noted that BYD ELECTRONIC's Q3 revenue reached RMB42.68 billion (down 2.0% YoY), while gross profit fell 20.0% YoY to RMB2.946 billion, with gross margin at 6.9% (down 1.6 percentage points YoY).

Management attributed the revenue and gross profit decline to product mix changes: 1) delayed shipments of high-margin metal casing components for a major North American client’s new smartphone model led to lower YoY revenue; 2) increased revenue from low-margin assembly businesses. Due to the gross profit contraction, net profit decreased 9.0% YoY to RMB1.407 billion.

CMB International highlighted that while Q3 revenue met expectations, net profit was pressured by weak smartphone component sales, declining new smart product revenue, and lower gross margins. However, the new energy vehicle (NEV) business sustained steady growth.

Management expects Q4 revenue and gross margin to remain flat, primarily due to iPhone component headwinds and delayed AI server projects. However, stronger revenue growth is anticipated in 2026, driven by component upgrades, new smart home product launches, premium NEV product expansion, and AI server project shipments.