汽车电子业务保持高速成长

Investment Rating - The report maintains a "Buy" rating for BYD Electronics, with a target price adjusted to HKD 40.7, indicating a potential upside of 17% from the current price of HKD 34.8 [1][3]. Core Insights - BYD Electronics is expected to achieve steady profit growth this year, driven by the automotive intelligence sector, particularly supported by BYD's automotive sales. The company's products in smart driving and suspension are anticipated to drive revenue growth that outpaces the parent company's automotive sales growth [9]. - The company is actively enhancing operational efficiency, which is expected to lead to a reduction in expense ratios and provide a foundation for profit release. The current valuation, with a P/E ratio of 13.5x, is considered attractive [9]. - The first quarter of this year saw a slight increase in revenue and profit, with revenue reaching RMB 36.88 billion, a year-on-year growth of 1%. The gross margin was 6.3%, showing a year-on-year decline of 0.6 percentage points [9][11]. Financial Forecasts - Revenue projections for BYD Electronics from 2023 to 2027 are as follows: - 2023: RMB 129,957 million - 2024: RMB 177,306 million (21% growth) - 2025E: RMB 193,450 million (9% growth) - 2026E: RMB 216,411 million (12% growth) - 2027E: RMB 239,562 million (11% growth) [2][10]. - Net profit forecasts for the same period are: - 2023: RMB 4,041 million - 2024: RMB 4,266 million (6% growth) - 2025E: RMB 4,758 million (12% growth) - 2026E: RMB 5,938 million (25% growth) - 2027E: RMB 7,031 million (18% growth) [2][10]. Valuation Methodology - The valuation of BYD Electronics is conducted using a sum-of-the-parts approach, assigning target P/E ratios to various segments, leading to a target price of HKD 40.7 [9][13]. - The segments and their respective target P/E ratios for 2025 are: - International customer assembly: 12x - International customer components: 13x - Android assembly: 12x - Android components: 15x - New smart products: 21x - Automotive intelligent systems: 35x [13]. Market Performance - The stock has a 52-week price range of HKD 24.85 to HKD 61.55, with a total market capitalization of HKD 71,877 million [3][9]. - The average daily trading volume over the past three months is HKD 1,252 million [3].