BYD Electronic's stock fell sharply intraday, dropping 5.11% as the company faced negative analyst sentiment and concerns about its business performance.

Citigroup recently downgraded BYD Electronic to a Sell rating with a target price of 22.6 HKD, citing significant quarterly revenue decline and margin pressure. The company's Q1 revenue dropped 32% quarter-over-quarter, far exceeding historical averages, driven by iPhone seasonality and weakness in its Android business. Gross margin also fell by 1.1 percentage points year-over-year to 5.2%.

Management guidance indicating flat full-year revenue and expected decline in Android EMS business further contributed to the negative sentiment. The broader electronic manufacturing services sector also showed weakness during the session, amplifying the stock's downward movement.