Huachuang Securities released a research report stating that BYD ELECTRONIC (00285) is a globally leading platform-based manufacturing enterprise. Its consumer electronics business benefits from category expansion within major client ecosystems and AI terminal upgrades, while its automotive electronics segment continues to accelerate product development with AI-driven cloud-edge synergy. Based on Q3 results, the firm revised down its 2025-2027 net profit forecasts to RMB4.683/5.808/6.713 billion (previously RMB5.19/6.194/7.106 billion), maintaining a target price of HK$56.4 and a "Strong Buy" rating. Key points from Huachuang Securities include:
**Performance Overview**: In the first three quarters of 2025, BYD ELECTRONIC reported revenue of RMB123.285 billion (YoY +0.95%) and net profit of RMB3.137 billion (YoY +2.4%). Q3 2025 revenue stood at RMB42.679 billion (YoY -1.99%), with net profit at RMB1.407 billion (YoY -8.99%). The slight pressure on Q3 performance was attributed to delayed shipments of a major client's Air model.
**Business Segments**: 1. **Consumer Electronics (Assembly + Components)**: Revenue of RMB60.946 billion in H1 2025 (YoY -3.73%), impacted by the postponed launch of the iPhone Air in October 2025. 2. **New Energy Vehicles**: Revenue surged 60.57% YoY to RMB12.454 billion, driven by expanded product lines including smart cockpits, thermal management, and ADAS. Suspension systems are being adopted by more vehicle models. 3. **Smart Products**: Revenue dipped 4.18% YoY to RMB7.206 billion.
**Growth Drivers**: - **Automotive Electronics**: Backed by its parent company, BYD ELECTRONIC is scaling smart cockpit, thermal management, and ADAS products, with intelligent suspension systems gaining traction. - **AI Business**: The company has established a portfolio covering servers (general, storage, AI), immersion cooling solutions, and power supplies. As an NVIDIA data center partner, it is witnessing robust growth in AI server shipments. Data center cooling and power products have secured certifications from industry leaders. - **Robotics**: BYD ELECTRONIC has developed AMRs (Autonomous Mobile Robots) with full-stack capabilities in sensors, actuators, and controllers. - **Consumer Electronics**: The acquisition of Jabil’s mobile manufacturing business (a key supplier of iPhone 15 Pro titanium frames) marks a breakthrough in smartphone components. Expansion into AI terminals (e.g., Apple Intelligence) and foldable devices is expected to fuel growth.
The firm anticipates BYD ELECTRONIC to benefit deeply from these strategic initiatives.