BYD Electronic's stock price plummeted 5.05% during intraday trading on Thursday, extending a recent period of weakness for the component manufacturer.

The sharp decline follows a recent downgrade by Citi to a Sell rating, with a target price of HK$22.6, suggesting further potential downside. The bank cited a concerning first-quarter performance, where revenue dropped 32% quarter-over-quarter, significantly worse than the average seasonal decline. This was attributed to iPhone seasonality and a weak Android business, with the company's gross margin also falling year-over-year.

Management's guidance for flat full-year revenue, coupled with an expected decline in the Android EMS business, has prompted broad caution. Multiple other institutions, including Bank of America and BOCI, have also lowered their target prices for the stock. While BYD Electronic is expanding into areas like AI server solutions, analysts note the revenue scale from these new ventures is currently too limited to offset the near-term pressures from the softening consumer electronics market in the short term.