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].
比亚迪电子：平台型高端制造企业，探索服务器新成长空间