Bank of America Securities issued a research report stating that BYD ELECTRONIC's performance in the second half of last year fell short of expectations. Net profit declined 35% year-on-year to RMB 1.8 billion, which was 34% and 37% below the bank's and market forecasts, respectively. While revenue was largely in line with expectations, the gross profit margin was 1.6 and 1.8 percentage points lower than the bank's and market projections. The bank has reduced its profit forecasts for BYD ELECTRONIC for 2026 and 2027 by 20% to 21%, reflecting margin pressure in the consumer electronics business. The target price has been cut from HK$38 to HK$31.50, implying a forecasted price-to-earnings ratio of 14 times for this year. The Neutral rating is maintained.