CICC lowered its 2024/25 net profit forecast for BYD Electronics (00285) to $50.66/6.235 billion yuan.
The Zhitong Finance App learned that CICC released a research report saying that considering the slump in consumer electronics demand, the 2024 net profit forecast for BYD Electronics (00285) was lowered by 4.4% to 5,066 billion yuan, the 2025 net profit forecast was lowered by 2.3% to 6.235 billion yuan, maintaining the “outperforming industry” rating, and the target price was lowered by 6.5% to HK$36. The company's net profit for 2023 is in line with the performance forecast and announced that it plans to distribute cash dividends of 0.538 yuan/share in 2023.
The bank said it is optimistic that the acquisition of JP will expand the company's parts business and is concerned about the growth space of the automotive electronics+server business. The company's acquisition of Jeep's product manufacturing business in Chengdu and Wuxi was completed on December 29, 2023. The bank is optimistic that the company will further expand its parts business and continue to improve its business structure through integration with Jeep; at the same time, the Android business is expected to break out of its trough as consumer electronics demand recovers. In the automotive electronics business, the company announced that shipments in categories such as smart cockpits, intelligent driving, smart suspensions, and thermal management will continue to increase. The bank is optimistic that automotive electronics will continue to grow rapidly in 2024 as the parent company continues to release cars. In terms of new intelligent products, the company continues to invest in the layout of AI data centers. The company announcement has formed products and solutions covering enterprise-level general purpose servers, storage servers, AI servers, and liquid cooling. The bank is optimistic about the company's growth potential in the data center field.