Financial Performance - Revenue increased by 39.87% to RMB78,581 million for the six months ended 30 June 2024[6] - Gross profit rose by 22.01% to RMB5,379 million for the six months ended 30 June 2024[6] - Profit attributable to owners of the parent company grew by 0.14% to RMB1,518 million for the six months ended 30 June 2024[6] - Earnings per share increased by 0.14% to RMB0.67 for the six months ended 30 June 2024[6] - The Group recorded sales of approximately RMB78,581 million in the first half of 2024, a year-on-year increase of approximately 39.87%[10] - Profit attributable to shareholders increased by approximately 0.14% to approximately RMB1,518 million in the first half of 2024[10] - The company achieved sales revenue of approximately RMB 78.581 billion in the first half of 2024, a year-on-year increase of 39.87%, with net profit attributable to shareholders rising by 0.14% to RMB 1.518 billion[11] - Revenue for the six months ended 30 June 2024 increased to RMB 78,580.8 million, up from RMB 56,180.1 million in the same period in 2023, representing a growth of approximately 39.9%[86] - Gross profit for the six months ended 30 June 2024 was RMB 5,379.0 million, compared to RMB 4,408.7 million in the same period in 2023, reflecting a 22.0% increase[86] - Profit before tax for the six months ended 30 June 2024 was RMB 1,635.8 million, compared to RMB 1,669.9 million in the same period in 2023, showing a slight decrease of 2.0%[86] - Total comprehensive income for the six months ended 30 June 2024 was RMB 1,526.8 million, slightly lower than the RMB 1,541.3 million in the same period in 2023[87] - Profit for the period reached RMB 1,517,800,000 for the six months ended 30 June 2024[90] - The final dividend declared for 2024 was RMB 0.538 per ordinary share, a significant increase from RMB 0.165 per ordinary share in 2023[125] Business Segments and Market Trends - Consumer electronics business revenue achieved substantial growth due to overseas major customers' product category expansion and market share increase[7] - New energy vehicle business segment revenue continued to grow with increased shipments of intelligent cockpit, intelligent driving assistance system, and thermal management products[7] - The Group is pursuing a multi-pronged strategy in the AI business, developing AIDC solutions and products like industrial robots and AIPC[7] - The company's consumer electronics business revenue reached RMB 63.303 billion, a year-on-year increase of 54.22%, with component revenue surging by 205.80% to RMB 15.246 billion and assembly revenue growing by 33.26% to RMB 48.057 billion[13] - Foldable smartphone shipments in China reached 4.427 million units in the first half of 2024, a year-on-year increase of 94.9%[12] - The AI server market is expected to grow significantly in 2024, with shipments projected to increase by 41.5% and output value expected to exceed $187 billion, representing 65% of the total server market value[14] - The company's new intelligent products business recorded revenue of approximately RMB 7.521 billion in the first half of 2024, accounting for 9.57% of total revenue, but representing a 16.43% decrease compared to the same period in 2023[15] - The company's consumer electronics business benefited from the recovery in demand, with domestic and overseas customer demand improvement driving substantial growth in Android parts and assembly business[13] - The company strengthened strategic cooperation with industry-leading customers in various segments, achieving growth in unmanned aerial vehicles, smart home, and game hardware businesses[15] - The company actively participated in the development of new materials and products for many customers, leveraging its technological advantages and manufacturing strength to support product iteration and innovation[13] - The company began consolidating financial statements for the business acquired at the end of 2023, driving the expansion of the consumer electronics component business and creating more long-term development opportunities[13] - China's new energy vehicle sales reached 4.944 million units in the first half of 2024, a year-on-year growth of 32%, with market share increasing from 31.6% in 2023 to 35.2%[16][17] - The export volume of new energy vehicles in China reached 0.605 million units in the first half of 2024, a year-on-year growth of 13.2%[16][17] - The company's revenue from the new energy vehicle business segment amounted to approximately RMB7,757 million in the first half of 2024, accounting for 9.87% of total revenue, representing a year-on-year increase of 26.48%[16][17] - Global smartphone shipments are forecasted to grow by 4.0% year-on-year to 1.21 billion units in 2024, with AI smartphone shipments expected to grow by 364% year-on-year to 234 million units[21] - AI PC shipments are expected to grow from nearly 50 million units in 2024 to 167 million units in 2027, accounting for nearly 60% of global PC shipments[21] - The company has deployed intelligent cockpit systems, intelligent driving systems, and thermal management systems, with products achieving mass production and continuous shipment growth[16][17] - The global new energy vehicle market is projected to grow by 27% year-on-year to reach 17.5 million units in 2024, with a CAGR of 22% from 2023 to 2027, reaching approximately 40 million units by 2027[26] - China's intelligent cockpit market is forecasted to reach RMB152.8 billion in 2024, growing at an annual rate of 17.5%, and is expected to reach RMB212.7 billion by 2026[26] - The penetration rate of air suspension in China is expected to rise to 15% by 2025, with a market value of about RMB38 billion and a CAGR of 41.3%[27] - The global automotive sensor market is projected to grow from US$28.88 billion in 2024 to US$38.74 billion in 2029, at a CAGR of 6.05%[28] - The company expects sustained growth in shipments of intelligent cockpits, intelligent driving, thermal management, and sensors in the second half of 2024, with intelligent suspension products achieving mass delivery in batches[28] - The company plans to deepen cooperation with domestic and overseas automotive companies, continue to develop new customers, and strive to become a world-leading solution provider in the new energy vehicle industry[28] - The company has expanded its business from a single Android business to a diversified layout including overseas major customer business, Android business, automotive business, and intelligent product business[29] - The company has developed a series of product lines for new energy vehicle business, including intelligent cockpits, intelligent driving, intelligent suspension, core controllers, and sensors[29] - New intelligent products such as unmanned aerial vehicles, game hardware, and smart home have achieved rapid growth[29] - The company is actively expanding new businesses such as AIDC and intelligent industrial robots to foster new growth drivers[29] - The Group operates in diverse markets including smartphones, tablets, new energy vehicles, AIDC (AI servers, thermal management, power management), smart home, gaming hardware, drones, 3D printers, IoT, robotics, and communication equipment[98] Financial Position and Cash Flow - Operating cash inflow decreased to RMB183 million from RMB2,351 million in the first half of 2023, primarily due to increased cash payments for goods and services[35][38] - Interest-bearing bank and other borrowings increased to RMB15,576 million as of 30 June 2024, up from RMB14,613 million at the end of 2023[35][39] - Inventory turnover days decreased from 61 days to 49 days, driven by a higher year-on-year increase in cost of sales compared to inventory balance[36] - The gearing ratio increased to 31.64% from 26.11%, mainly due to a higher increase in net liabilities compared to equity[40] - The Group had approximately 168,000 employees as of 30 June 2024, with total staff costs accounting for 12.43% of revenue[50] - The Group's bank deposits pledged for credit guarantees increased to RMB13,169,000 from RMB9,000,000 at the end of 2023[45][49] - Total assets as of 30 June 2024 were RMB 85,869.9 million, a decrease from RMB 87,218.6 million as of 31 December 2023[88] - Current assets as of 30 June 2024 were RMB 54,037.0 million, compared to RMB 54,606.9 million as of 31 December 2023[88] - Total equity as of 30 June 2024 was RMB 29,645.0 million, up from RMB 29,330.4 million as of 31 December 2023[89] - Total equity increased to RMB 29,644,966,000 as of 30 June 2024, up from RMB 29,330,389,000 at the beginning of the year[90] - Consolidated reserves amounted to RMB 25,592,738,000 as of 30 June 2024, compared to RMB 25,278,161,000 at the end of 2023[91] - Net cash flows from operating activities were RMB 182,990,000 for the six months ended 30 June 2024, a significant decrease from RMB 2,350,625,000 in the same period of 2023[93] - Cash and cash equivalents decreased to RMB 8,130,150,000 as of 30 June 2024, down from RMB 10,537,361,000 at the beginning of the period[94] - The Group secured new loans totaling RMB 9,500,000,000 during the six months ended 30 June 2024[94] - Depreciation of property, plant, and equipment amounted to RMB 2,318,456,000 for the six months ended 30 June 2024[92] - Inventories increased by RMB 2,259,267,000 during the six months ended 30 June 2024[93] - Trade receivables as of 30 June 2024 amounted to RMB23,330,171,000, with 90-day receivables making up RMB22,343,059,000[132] - Due from fellow subsidiaries stood at RMB4,687,791,000 as of 30 June 2024, down from RMB4,818,115,000 at the end of 2023[132] - Trade and bills payables totaled RMB28,730,363,000 as of 30 June 2024, with 90-day payables accounting for RMB27,746,130,000[134] - Due to fellow subsidiaries decreased to RMB10,750,538,000 as of 30 June 2024 from RMB11,790,756,000 at the end of 2023[135] - The company's capital commitments for plant and machinery decreased to RMB 393,597 thousand as of June 30, 2024, compared to RMB 442,014 thousand at the end of 2023[146] - The company's total capital commitments decreased to RMB 434,542 thousand as of June 30, 2024, compared to RMB 556,288 thousand at the end of 2023[146] Strategic Initiatives and Future Outlook - The Group demonstrated strong resilience and achieved continuous expansion of market share despite complex international political and economic environment[10] - The Group plans to expand into AIDC and intelligent industrial robotics, aiming to cultivate new growth drivers[30] - The Group expects all business segments to maintain strong growth momentum in the second half of 2024[30] - The company will continue to deepen its layout in core technology R&D and innovation, reinforce vertical integration advantages, and intensify the major customer strategy[19][20] - The company will further explore the potential of core businesses with major overseas customers and actively expand product categories to enhance product share[21] - The company will strengthen its global layout and drive business growth in both domestic and overseas markets in the consumer electronics sector[21] - The global AI server market is forecasted to grow at a compound annual growth rate (CAGR) of 26.5% from 2024 to 2029, reaching $50.65 billion by 2029[24] - Hyperscale data center companies' spending on cloud infrastructure is expected to double from $70 billion in 2024 to $140 billion in 2025, and further rise to $210 billion by 2028[24] - The green data center market is anticipated to reach $81.12 billion in 2024, growing at an annual rate of 15.7%[24] - The liquid cooling market for data centers is predicted to grow at a CAGR of 25% from 2023 to 2035, surpassing $230 billion by the end of 2035[24] - The Autonomous Mobile Robot (AMR) market is expected to reach $1.59 billion in 2024, growing at an annual rate of 16.9%[24] - The company plans to deepen collaboration with top-tier customers and roll out new businesses such as AIDC and industrial robots, achieving bulk delivery in the second half of the year[25] - The company is leveraging its R&D capabilities and global presence to develop new high-growth potential categories and markets, driving long-term sustainable business growth[25] Corporate Governance and Shareholder Information - The company's share capital as of 30 June 2024 consists of 2,253,204,500 issued ordinary shares[52][56] - The Group's capital commitments as of 30 June 2024 were approximately RMB435 million, down from RMB556 million at the end of 2023[53][57] - The Group employs approximately 168,000 staff as of 30 June 2024, with total staff costs accounting for about 12.43% of the Group's turnover[56] - Mr. Wang Chuan-fu holds 513,623,850 A shares of BYD, representing approximately 28.56% of BYD's total issued A shares as of 30 June 2024[63][66] - Mr. Wang Nian-qiang holds 17,102,000 shares of the Company, representing 0.76% of total issued shares, and 18,299,740 A shares of BYD, representing 1.01% of BYD's total issued A shares[59][62] - The Group has implemented a three-tier training framework for new staff since 2021, requiring attendance and passing examinations before assuming duties[51][56] - No significant events affecting the Group's financial condition or operation occurred between 30 June 2024 and the date of the interim report[55][58] - The Company did not adopt any share schemes during the review period[64][67] - Golden Link Worldwide Limited holds 1,481,700,000 shares, representing 65.76% of the total issued shares[68] - BYD (H.K.) Co., Limited and BYD Company Limited each hold 1,481,700,000 shares, representing 65.76% of the total issued shares[68] - The company has not been notified of any other substantial shareholders as of 30 June 2024[70] - The company's domestic female employees account for approximately 36.77% of the total workforce[82] - The Audit Committee reviewed the unaudited results of the Group for the period[83] - The company did not recommend the distribution of an interim dividend for the six months ended 30 June 2024, consistent with the same period in 2023[84][85] - The company's domestic female employees accounted for approximately 36.77% of the total workforce as of the reporting date[84] - The financial statements were approved and authorized for issue by the board of directors on 28 August 2024[174] Legal and Regulatory Matters - A legal dispute with Foxconn, initiated in 2007, remains unresolved with unquantified damages sought by the plaintiffs[139][140] - The company's legal counsel has not been able to reliably estimate the outcome or potential settlement amount of the ongoing Foxconn litigation[143][145] Related Party Transactions - BYD Precision received entrusted loans of RMB13.5 billion from BYD Co., Ltd., with a fixed interest rate of 2.5%. RMB4 billion is due in 2024, and the remaining RMB9.5 billion is due in 2025[154] - BYD Electronic obtained a loan of USD263.88 million (RMB1.88 billion) from BYD HK Co., Ltd., with a fixed interest rate ranging from 5.98% to 6.08%[154] - The Group's total lease liabilities with related companies amounted to RMB465.81 million as of 30 June 2024, with RMB169.21 million due to the ultimate holding company and RMB206.18 million due to fellow subsidiaries[158] - The net carrying amount of right-of-use assets related to rental contracts was RMB265.95 million as of 30 June 2024, compared to RMB233.62 million as of 31 December 2023[158] - Short-term employee benefits for key management personnel totaled RMB7.68 million for the six months ended 30 June 2024, a slight decrease from RMB7.80 million in the same period of 2023[160] - Sales of inventories to fellow subsidiaries increased significantly to RMB 6,239,875 thousand in 2024, up from RMB 5,191,183 thousand in 2023[149] - Purchases of batteries from fellow subsidiaries decreased to RMB 630,025 thousand in 2024, down from RMB 1,996,834 thousand in 2023[151] - Sales of plant and machinery to fellow subsidiaries increased to RMB 10,228 thousand in 2024, up from RMB 4,376 thousand in 2023[142] - Purchases of inventories from fellow subsidiaries increased to RMB 242,108 thousand in 2024, up from RMB 192,127 thousand in 2023[149] - Lease and ancillary services payments to fellow subsidiaries remained relatively stable at RMB 347,021 thousand in 2024, compared to RMB 349,903 thousand in 2023[149] - Exclusive processing services received from fellow subsidiaries increased to RMB

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致的任何損失承擔任何責任。 （根據公司條例於香港註冊成立的有限公司） （股份代號：285） 二零二四年中期業績公告 本公司董事會（「董事會」）欣然宣佈本公司及其附屬公司截至二零二四年六月三 十日止六個月期間的未經審核業績。本公告載有本公司二零二四年中期報告 全文，乃按香港聯合交易所有限公司證券上市規則中有關初步中期業績公告的 相關規定而編製。本公司二零二四年中期報告可於香港聯合交易所披露易網站 www.hkexnews.hk及本公司網站http://electronics.byd.com閱覽，如本公司股東需 瀏覽印刷版本，可依照本公司同日發佈之通知信函及回條內指引獲取。 承董事會命 比亞迪電子（國際）有限公司 董事 王念強 香港，二零二四年八月二十八日 於本公告刊發日期，董事會成員包括執行董事王念強先生及江向榮先生；非執 行董事王傳福先生及王渤先生；及獨立非執行董事鍾國武先生、錢靖捷先生及 王瑛女士。 | --- | |------ ...

29 Jul 2024 CMB International Global Markets | Equity Research | Company Update BYDE (285 HK) 1H24E preview: Expect solid growth on iPad/ iPhone cycle, Android recovery and NEV orders BYDE will report 1H24 results in Aug. We estimate 1H24 revenue/NP growth of 32%/26% driven by iPad share gains, Android recovery, Jabil biz consolidation, stable NEV components sales and new intelligent product business. For 2H24E/2025E, we are positive on iPad/iPhone upgrade cycle, Android high-end orders, automotive orders a ...

2024 年 7 月 29 日 CMB 国际全球市场 | 股票研究 | 公司更新 比亚迪 （ 285 香港 ）1H24E 预览版 ： 预计 iPad / iPhone 周期 ， Android 恢复和 NEV 订单 (上一个 TP HK $45.28 HK $45.15) 47.3% 比亚迪将在 8 月公布 1H24 业绩我们估计 1H24 收入 / NP 增长 32% / 26% 受 iPad 份额增长、 Android 复苏、 Jabil 业务整合、 稳定的新能源汽车零部件销售和新型智能产品业务。为 2H24E / 2025E ， 我们对 iPad / iPhone 升级周期持积极态度 ， Android 高端 订单、汽车订单和人工智能服务器推动收入增长。我们削减了 FY24 - 26E 每股收益下降 6% ， 主要是由于 GPM 走弱。我们的 FY24 - 26E 每股收益估计为 1 - 9% 以上的共识。该股现在的市盈率为 12.7 倍 / 9.3 倍 FY24 / 25E 市盈率 ， 即 我们认为有吸引力。我们新的基于 SOTP 的 TP 为 45.28 港元 ， 意味着 FY24E 的 18.3 ...

BYDE (285 HK) CMBI Corp Day takeaways: iPad/iPhone cycle, NEV, AI servers and robotics Target Price HK$45.15 Up/Downside 15.8% Current Price HK$39.00 China Technology Alex NG (852) 3900 0881 alexng@cmbi.com.hk Hanqing LI lihanqing@cmbi.com.hk Stock Data Mkt Cap (HK$ mn) 87,875.0 Avg 3 mths t/o (HK$ mn) 342.8 52w High/Low (HK$) 40.00/23.60 Total Issued Shares (mn) 2253.2 Source: FactSet Shareholding Structure Golden Link Worldwide Ltd 65.8% Gold Dragonfly Ltd 5.0% Source: HKEx Share Performance Absolute Rela ...

CMB 国际全球市场 | 股票研究 | 公司更新 比亚迪 ( 285 香港 ) CMBI Corp Day 外卖 : iPad / iPhone 周期 , NEV , AI 服务 器和机器人技术 我们于 6 月 28 日在 CMBI 技术公司日主持了 BYDE 。管理。重申了他们在 2024 年的积极前景 : 1 ) Apple / Adroid : iPad 份额增长,AI iPhoe 升级周期和高端 Adroid 增长 ; 2 ) NEV : 智能 驾驶舱,热泵系统,高端 ADAS 系统和主动悬架产品将在 FY24E 推动 40 % 以上的销售增长 ; 3 ) Nvidia AI 服务器 / 机器人 : 中国 CSP 的 AI 服务器和工厂的自主移动机器人 ( AMR ) 。该股 目前的市盈率为 15.2 倍,在我们看来很有吸引力。我们的 TP 为 45.15 港元,基于 17.2 倍 FY24E P / E 。重申买入和比亚迪是我们行业的首选。 消费电子产品 : iPad 份额增长 , iPhone 外壳和高端 Android 增长对于苹果公司来说,管 理层。iPad 份额增长和 iPhoe 周期保持乐 ...

Investment Rating - The report maintains a "Buy" rating with a target price of HKD 48.29 per share, indicating a potential upside of 22.1% from the current price of HKD 39.55 [5][13]. Core Insights - The company is expected to benefit from the AI-driven smartphone replacement trend, with a strong partnership with major consumer electronics clients, enhancing its supply chain position [3][6]. - The penetration rate of new energy vehicles (NEVs) in China has reached a new high, with the company's parent, BYD Group, achieving significant sales growth, which is expected to strengthen market competitiveness [8]. - The collaboration with NVIDIA is expanding, allowing the company to develop advanced solutions in various sectors, including AI and autonomous mobile robots [4][9]. Financial Summary - Revenue projections for 2024 to 2026 are RMB 161.31 billion (+24.1%), RMB 180.55 billion (+11.9%), and RMB 201.50 billion (+11.6%) respectively [5][13]. - The net profit forecasts for the same period are RMB 5.04 billion (+24.8%), RMB 6.37 billion (+26.3%), and RMB 7.67 billion (+20.4%) respectively, with an average net profit growth rate of 23.8% over three years [5][13]. - The gross margin is expected to improve from 8.0% in 2023 to 9.2% in 2026, reflecting operational efficiency [14]. Shareholder Information - The major shareholder, Golden Link Worldwide Limited, holds a 65.76% stake in the company, indicating strong control over corporate decisions [2].

Investment Rating - The report assigns a "Buy" rating to BYD Electronics with a target price of HKD 54, indicating a potential upside of 36% from the current stock price of HKD 39.55 [2][3]. Core Insights - BYD Electronics reported a 38.3% year-on-year increase in revenue for Q1 2024, reaching RMB 36.5 billion, with a net profit growth of 33% [2]. - The acquisition of Jabil's manufacturing operations in Chengdu and Wuxi for RMB 15.8 billion is expected to enhance operational capabilities and contribute positively to net profit despite incurring financial costs in the short term [2]. - The automotive electronics segment is projected to grow significantly, with expected revenue growth of 50% in 2024, driven by high-value new products [2]. - The company is expanding its business boundaries into AI servers, home energy storage, smart home devices, gaming hardware, and drones, indicating a diversification strategy [2]. Financial Summary - For the fiscal year ending December 31, 2022, BYD Electronics reported total revenue of RMB 107.19 billion, with a net profit of RMB 1.86 billion [4]. - Revenue is forecasted to grow to RMB 162.41 billion in 2024, with a net profit of RMB 5 billion, reflecting a growth rate of 25% [4]. - The gross margin is expected to stabilize around 8.3% in 2024, with net profit margins improving to 3.08% [4]. - The company’s earnings per share (EPS) is projected to increase from RMB 1.79 in 2023 to RMB 2.22 in 2024, representing a growth of 23.8% [4].

Investment Rating - The report gives a "Strong Buy" rating for BYD Electronics, with a target price of HKD 49.40, based on a 20x PE for 2024 [2][8]. Core Insights - BYD Electronics is a leading platform-based high-end manufacturing enterprise with comprehensive layouts in consumer electronics, automotive electronics, and AI businesses, driving long-term growth [2][6]. - The company reported revenue of CNY 130.4 billion in 2023, with a year-on-year growth of 20.83%, and expects to achieve a net profit of CNY 4.04 billion, a significant increase of 117.56% year-on-year [20][21]. - The AI business is positioned for growth, with a focus on both cloud and edge computing, and partnerships with major clients like NVIDIA [7][28]. - The consumer electronics segment is expected to benefit from the new iPad product cycle and the recovery of the Android market, with significant contributions from the acquisition of Jabil's mobile manufacturing business [47][55]. - The automotive electronics sector is experiencing rapid growth, supported by the increasing sales of BYD's parent company, BYD Group, which achieved global leadership in electric vehicle sales [66][71]. Summary by Sections Company Overview - BYD Electronics, established in 1995, is a global leader in high-end manufacturing, serving various sectors including smartphones, IoT, and electric vehicles [13][14]. - The company has a strong focus on R&D and precision manufacturing capabilities, providing a wide range of products and services [16][24]. AI Business - The AI segment includes cloud-based servers and autonomous mobile robots (AMR), leveraging partnerships with NVIDIA to enhance capabilities [28][36]. - The company is developing a comprehensive range of server products, including AI servers and liquid cooling solutions, to support data center growth [36][39]. Consumer Electronics - BYD Electronics is a key supplier for major clients like Apple, with expectations of benefiting from the upcoming iPad product launches and the recovery in the Android market [47][49]. - The acquisition of Jabil's mobile manufacturing business is expected to enhance the company's position in the smartphone component market [50][54]. Automotive Electronics - The automotive electronics market is expanding rapidly, with BYD Electronics benefiting from the growth of its parent company, BYD Group, which is a leader in the electric vehicle market [66][71]. - The company is actively expanding its product lines and customer base in the automotive sector, focusing on smart cockpit and autonomous driving technologies [72][74]. New Intelligent Terminals - BYD Electronics is positioned to benefit from the growth of the drone market, being a core supplier for DJI, as the low-altitude economy gains traction [74][75]. - The company has also entered the electronic cigarette market, completing its product lineup and production capacity [75].

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its stock performance [2][4][58]. Core Insights - The company is a leading platform-based high-end manufacturing enterprise, benefiting from the recovery in consumer electronics driven by AI applications, and is expected to maintain strong growth in its electric vehicle and new intelligent product segments [5][58]. - The company has achieved a revenue CAGR of 23.2% and a net profit CAGR of 20.1% from 2013 to 2023, showcasing its high-quality growth [2][12]. - The acquisition of Jabil (Singapore) is expected to contribute positively to profit growth and expand the company's market presence in consumer electronics [22][25]. Summary by Sections 1. Company Overview - The company is a subsidiary of BYD, established in 1995 and listed in Hong Kong in 2007, focusing on electronic product design, manufacturing, and sales [12][13]. - It has diversified operations across various sectors, including smartphones, new energy vehicles, and smart home products, with a strong emphasis on high-quality manufacturing [12][16]. 2. Consumer Electronics Business - The consumer electronics segment accounted for 75% of total revenue in 2023, with a focus on high-end products and partnerships with major clients [2][17]. - The segment is expected to benefit from the recovery in demand driven by AI applications, with projected revenue growth of 10% annually from 2024 to 2026 [4][51]. 3. New Energy Vehicles - The company's new energy vehicle business is supported by BYD's strong market position and is projected to grow at a rate of 25% annually from 2024 to 2026 [4][51]. - The increasing penetration of electric vehicles in China is expected to drive significant growth in this segment [47][50]. 4. AI Server Market - The company is actively investing in AI server development, aiming to tap into the growing demand for AI capabilities and has established a partnership with NVIDIA [3][43]. - The global AI server market is expected to grow significantly, with the company positioned to benefit from this trend [40][41]. 5. Financial Projections - The company forecasts net profits of 50.66 billion, 63.29 billion, and 75.93 billion RMB for 2024, 2025, and 2026, respectively [4][58]. - The average PE ratio for comparable companies is projected at 20X, while the company’s PE for 2024 is estimated at 14X, indicating potential undervaluation [4][58].