BYD ELECTRONIC(00285.HK)：CONSUMER ELECTRONICS REMAIN STEADY; BULLISH ON GROWTH IN AUTO&DATA CENTER BUSINESSES MAINTAIN "BUY"-格隆汇

机构：国泰君安国际
研究员：Hunter Zhang

　　Maintain "Buy" with TP at HK$52.00. We remain optimistic about BYD Electronic’s (the “Company”) 2025 performance, driven by automotive segment growth and data center business ramp-up. While the consumer electronics segment continues as a stable core business, the data center segment is poised for growth, and the automotive segment scale should further expand amid NEV market growth. The transition towards automotive and data center businesses should drive its GPM expansion through higher-value products. Combined with additional growth potential and diminishing impact from Jabil acquisition-related depreciation, we expect stronger net profit delivery. We forecast 2025F-2027F EPS of RMB2.488/ RMB3.373/ RMB4.270. We revise down the Company’s target price to HK$52.00 by applying 19.0x 2025F PER.
　　The Company delivered robust revenue growth in 2024, driven by strong performance in consumer electronics and automotive segments. Revenue rose 36.4% YoY to RMB177.31 bn, while net profit increased 5.6% YoY to RMB4.27 bn. In consumer electronics, the Company benefited from accelerating AI development and application deployment, which stimulated high-end device replacement demand, particularly from overseas clients like Apple, reinforcing its leadership position. The automotive segment also maintained strong growth momentum, with expanding scale in intelligent cockpit systems, thermal management, and suspension components, supported by accelerating vehicle intelligence trends. GPM of 6.9% came in slightly below our expectations due to ongoing product mix optimization. We expect GPM improvement as the Company increases exposure to automotive and data center products.
　　We expect automotive and data center segments to emerge as new growth engines. The automotive business shows solid development, with the Company building strong capabilities in higher-value products such as intelligent cockpits and suspension systems. This positioning, combined with robust NEV industry growth, should drive further profit expansion. Meanwhile, the Company has strategically positioned itself in AI servers, data centers, and robotics. With AI server assembly projects now secured, we project the data center segment to generate over RMB3 bn in revenue by 2025, establishing itself as a new growth catalyst. Moreover, the Company is one of the few enterprises with the capability to produce robot components and perform assembly, we expect the Company’s robot business may also become an important part to drive earning growth.
　　Catalysts: 1) efficiency improvement at Jabil plants; 2) shipment of AI server products; and 3) mass production of more NEV. Downside risks: 1) fierce market competition; and 2) slower product line expansion.