CMB International released a research report stating that it maintained the “buy” rating of BYD Electronics (00285) and chose individual stocks for the bank's industry. The target price based on the segmented valuation method is HK$44.41, which corresponds to 15 times the price-earnings ratio for FY25. The stock is currently trading at 11.9 times the FY25 price-earnings ratio, which the bank sees as attractive.
The bank hosted a 4Q outlook NDR conference call for BYD Electronics yesterday. Management has a positive view of the company's various business segments in 4Q24/2025:1) Apple/Android: iPad share growth, Jeep automation rate increase, and high-end Android demand; 2) New energy vehicles: increasing penetration rate and loading rate of high-end ADAS and suspension products to drive growth; 3) AI servers: Cooperate with Nvidia to actively promote ODM product growth and a strong GB200 component product roadmap.
