Goldman Sachs published a research report that BYD Electronics' revenue growth will recover in 2027, benefiting from stable demand for smartphones and personal computers under relatively stable memory costs, as well as an upgrade in the company's product portfolio; increased revenue exposure from Apple and BYD, and expansion into the AI server supply chain. The bank continues to expect the gross margin of BYD Electronics to recover by 2028. Based on the 2027 target price-earnings ratio, the target price will be raised from HK$21 to HK$22, maintaining the “sell and sell” rating. Goldman Sachs said that demand for terminals is moderate under high memory costs. At the same time, it has included AI computing infrastructure in the forecast to reflect the company's expansion into AI data centers and lowered its consumer electronics revenue forecast. Accordingly, BYD Electronics' 2026-2028 net profit forecast was lowered by 40%, 3% and 32%, respectively. It is still expected to increase 24% on a semi-annual basis in the second half of 2026. Stabilizing memory costs can drive an improvement in demand for electric vehicles and consumer electronics terminals, as well as the launch of more flagship models with better seasonality.

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.