Ray KWOK CFA, an analyst from CGS-CIMB, reiterated the Buy rating on BYD Electronic (International) Co. The associated price target is HK$54.30.
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Ray KWOK CFA has given his Buy rating due to a combination of factors that highlight BYD Electronic’s strong growth prospects. The company is expected to see an 18% year-over-year increase in revenue from Apple in FY26, driven by the supply of midframes for Apple’s new foldable model and assembly services for HomePod, which are anticipated to contribute significantly to the revenue. Additionally, the company is benefiting from a robust demand for new electric vehicle parts, particularly due to BYD’s accelerated adoption of intelligent driving systems, which is expected to drive a 35-40% revenue growth in auto products for FY25.
Furthermore, BYD Electronic’s financial performance in the first half of 2025 showed a 14% increase in net profit, supported by strong demand for high-margin suspension systems and a 61% growth in auto products revenue. The company’s efforts in expanding its market share in Apple’s supply chain and the anticipated mass production of liquid-cooling solutions for Nvidia are also expected to bolster its revenue. These factors, combined with a higher target price based on an 18x FY26 P/E ratio, reinforce the Buy rating. Potential risks include weaker demand from Apple and slower adoption of advanced driver assistance systems by BYD.
In another report released on September 2, DBS also maintained a Buy rating on the stock with a HK$57.00 price target.