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<Research>DBS Trims BYD ELECTRONIC TP to $34 as Auto Electronics Biz Growth on Upward Trend
Recommend 10 Positive 26 Negative 10 |
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DBS Group Research trimmed its target price on BYD ELECTRONIC (00285.HK) from $38 to $34, equivalent to 14x of projected PE ratio, a historical average level. DBS Group Research also lowered its 2024 and 2025 earnings forecasts by 9%/ 3%, reflecting the pressure on gross profit from higher smartphone contribution. BYD ELECTRONIC directly benefits from the NEV sales of its parent company, BYD COMPANY (01211.HK), DBS Group Research said. BYD COMPANY is expected to record a YoY increase of 24%/ 18% for NEV sales in 2024/ 2025, and an increase of 30%/ 23% for the value of electronic components per EV over the same period, respectively. DBS Group Research also expected the automotive electronics segment revenue to grow 62%/ 53%/ 52% from 2024 to 2026, accounting for 24% of the overall revenue share in 2026, much higher than 11% in 2023. The shift of orders from Apple Inc. (AAPL.US) to suppliers in mainland China continued, and the Company is expected to increase its market share in the iPhone value chain, DBS Group Research added. It is also expected that the AI iPhone will support the premiumization of smartphones, and boost BYD ELECTRONIC's handset assembly and components business. AAStocks Financial News |
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