The Zhitong Finance App learned that Goldman Sachs released a research report stating that it will raise the target price of BYD Electronics (00285) from HK$21 to HK$22 to maintain the “sale and sale” rating. The target price is based on the 2027 forecast price-earnings ratio of 10 times. The forecast anticipates that BYD Electronics' revenue growth will recover in 2027, benefiting from stable demand for smartphones and PCs under relatively stable memory costs, an upgrade in the company's product portfolio, and increased revenue exposure from Apple (AAPL.US) and BYD (01211), and expansion into the AI server supply chain, including liquid cooling and power supply. The bank continues to expect the company's gross margin to recover by 2028.

Goldman Sachs said that in the face of high memory costs, demand for terminals is still relatively moderate. The bank has included AI computing infrastructure in the forecast to reflect the company's expansion into the AI data center sector, while lowering its consumer electronics revenue forecast, and cut BYD Electronics' 2026-2028 net profit forecast by 40%, 3%, and 32%, respectively.

The bank still expects net profit for the second half of 2026 to increase by 24% compared to the first half of the year, mainly due to stable memory costs, which is expected to lead to improved demand for electric vehicles and consumer electronics terminals, as well as better seasonal performance and the launch of more flagship models.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.