The Zhitong Finance App learned that Bank of China International released a research report saying that BYD Electronics' (00285) consumer electronics slump and AI infrastructure volume mark a good entry point, reaffirming the “buy” rating. The target price is HK$33.7, based on a price-earnings ratio of 15 times per share in 2027. BYD Electronics' results for the third quarter of 2026 fell short of expectations. Due to weak smartphones, revenue increased 6% year on year, while gross profit and net profit fell 31% and 61% year on year, respectively.

Although the consumer electronics division continues to be pressured from 2026 to 2027, the bank believes that major US customers will shift their mobile phone patterns to more titanium content in 2027, which will effectively offset the downward cycle. In addition, the continued expansion of AI infrastructure and an increase in the value of automotive intelligent systems (AIS) content per vehicle in 2027 are expected to drive the Group's gross profit margin. With the current price-earnings ratio and market-account ratio close to the historical average below two standard deviations, and the company's precision manufacturing capacity is shifting to AI infrastructure, the bank sees the current level as an attractive entry point.

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.