BYDE (285 HK) Summary
Core Content and Key Highlights
BYDE's FY25 earnings declined by 18% YoY, primarily due to lower gross margin (GPM) and weaker sales from major smartphone clients in the second half of the year, while revenue growth remained +1.2% YoY and was largely in-line with expectations. The decline in 4Q25 earnings was -69% YoY, attributed to sluggish Android demand, iPhone spec changes, and auto market competition.
In FY26E, the company is expected to maintain stable revenue, with key growth drivers coming from the smartphone components (especially high-end and foldable devices), automotive content value increase, and AI server business expansion, particularly in liquid cooling and high-voltage power. The management outlook remains positive, and the target price is set at HK$35.80, implying a 16.1x P/E multiple for FY26E.
Main Growth Drivers
- Smartphone Components: High-end and foldable devices are expected to drive growth, with a focus on iPhone Fold.
- Automotive Business: Increased content value through intelligent cockpit, ADAS, smart suspension, and thermal management.
- AI Computing Infrastructure: Target revenue of several billion RMB, with growth from server shipments, liquid cooling (cold plate in 2Q/3Q MP), and high-voltage power/interconnect/UQD.
Financial Overview
| Metric |
FY23A |
FY24A |
FY25E |
FY26E |
FY27E |
| Revenue (RMB mn) |
129,957 |
177,306 |
179,477 |
179,091 |
188,530 |
| YoY growth (%) |
21.2 |
36.4 |
1.2 |
-0.2 |
5.3 |
| Net profit (RMB mn) |
4,041.4 |
4,265.6 |
3,514.6 |
4,540.1 |
5,075.4 |
| YoY growth (%) |
117.6 |
5.5 |
-17.6 |
29.2 |
11.8 |
| EPS (Reported) (RMB) |
1.79 |
1.89 |
1.56 |
2.02 |
2.26 |
| Consensus EPS (RMB) |
na |
na |
2.07 |
2.64 |
3.26 |
| P/E (x) |
14.3 |
13.6 |
16.4 |
12.7 |
11.4 |
| P/B (x) |
2.0 |
1.8 |
1.7 |
1.5 |
1.4 |
| Yield (%) |
2.1 |
2.2 |
1.8 |
2.4 |
2.6 |
| ROE (%) |
14.7 |
13.8 |
10.5 |
12.5 |
12.7 |
Key Risks and Valuation
- Revised EPS Forecasts: FY26-27E EPS forecasts were lowered by 9–16% due to FY25 results, OEM business weakness, and lower GPM.
- Valuation: The new SOTP-based target price of HK$35.80 reflects a 16.1x FY26E P/E.
- Catalysts: Expected to include iPhone Fold launch, AI server client wins, and earnings recovery.
Business Segments Performance (FY25E)
- Assembly: Revenue +2% YoY, with Apple share gains offsetting Android weakness.
- Component: Revenue -18% YoY, impacted by iPhone spec change.
- NEV: Revenue +28% YoY, driven by intelligent driving, suspension, cockpit, and thermal products.
- AI Computing: Revenue +32% YoY, fueled by server shipment growth and client wins.
Earnings Revision
| Metric |
New (FY26E) |
New (FY27E) |
Old (FY26E) |
Old (FY27E) |
Change (%) |
| Revenue (RMB mn) |
179,091 |
188,530 |
192,940 |
205,630 |
-7.2% / -8.3% |
| Gross profit (RMB mn) |
12,130 |
13,167 |
13,591 |
15,427 |
-10.8% / -14.6% |
| Operating profit (RMB mn) |
4,127 |
4,742 |
4,793 |
5,988 |
-13.9% / -20.8% |
| Net profit (RMB mn) |
4,540 |
5,075 |
5,014 |
6,054 |
-9.4% / -16.2% |
| EPS (RMB) |
2.02 |
2.26 |
2.23 |
2.69 |
-9.2% / -16.0% |
| Gross margin (%) |
6.8% |
7.0% |
7.0% |
7.5% |
-0.3ppt / -0.5ppt |
| Operating margin (%) |
2.3% |
2.5% |
2.5% |
2.9% |
-0.2ppt / -0.4ppt |
| Net margin (%) |
2.5% |
2.7% |
2.6% |
2.9% |
-0.1ppt / -0.3ppt |
Valuation Metrics
- P/E (12M forward): 16.1x
- P/B (12M forward): 1.4x
- Dividend Yield: 2.6%
- EV/Sales: 0.2x
Analyst Recommendations
- Rating: BUY
- Target Price: HK$35.80
- Previous TP: HK$39.69
- Up/Downside: 22.9%
Shareholding and Stock Data
| Metric |
Value (HK$) |
| Market Cap |
65,613.3 mn |
| Avg 3 mths t/o |
313.8 mn |
| 52w High/Low |
44.10/28.65 |
| Total Issued Shares |
2,253.2 mn |
Shareholding Structure
- Golden Link Worldwide Ltd: 65.8%
- Gold Dragonfly Ltd: 5.0%
Share Performance (12-Month)
| Period |
Absolute (%) |
Relative (%) |
| 1-Month |
-9.7 |
-2.9 |
| 3-Months |
-14.7 |
-10.9 |
| 6-Months |
-29.6 |
-23.6 |
CMBI Estimates vs Consensus
| Metric |
CMBI FY26E |
CMBI FY27E |
Consensus FY26E |
Consensus FY27E |
Diff (%) |
| Revenue (RMB mn) |
179,091 |
188,530 |
202,995 |
222,231 |
-11.8% / -15.2% |
| Gross profit (RMB mn) |
12,130 |
13,167 |
15,466 |
18,008 |
-21.6% / -26.9% |
| Operating profit (RMB mn) |
4,127 |
4,742 |
5,825 |
7,410 |
-29.2% / -36.0% |
| Net profit (RMB mn) |
4,540 |
5,075 |
5,882 |
7,474 |
-22.8% / -32.1% |
| EPS (RMB) |
2.02 |
2.26 |
2.64 |
3.26 |
-23.4% / -30.8% |
| Gross margin (%) |
6.8% |
7.0% |
7.6% |
8.1% |
-0.8ppt / -1.1ppt |
| Operating margin (%) |
2.3% |
2.5% |
2.9% |
3.3% |
-0.6ppt / -0.8ppt |
| Net margin (%) |
2.5% |
2.7% |
2.9% |
3.4% |
-0.4ppt / -0.7ppt |
SOTP Valuation
| Business Segment |
% of FY26E Profit |
FY26E EPS (RMB) |
Target P/E |
| Assembly |
37% |
0.75 |
15x |
| Components |
12% |
0.24 |
15x |
| Jabil Components |
14% |
0.29 |
15x |
| AI Computing |
2% |
0.04 |
20x |
| Auto Intelligent |
35% |
0.70 |
18x |
| Others |
0% |
- |
- |
| Total (RMB) / Implied P/E |
- |
2.02 |
16.1x |
| TP (HK$) |
- |
- |
35.80 |
Analyst Certification
The analyst certifies that the views expressed in this report accurately reflect his or her personal views and that no part of his or her compensation was related to the specific views in this report. Additionally, the analyst confirms that no trading or financial interests in the stocks covered were involved within the specified periods.
CMBIGM Ratings
- BUY: Potential return of over 15% over next 12 months
- HOLD: Potential return of +15% to -10% over next 12 months
- SELL: Potential loss of over 10% over next 12 months
- OUTPERFORM: Industry expected to outperform the relevant market benchmark
- MARKET-PERFORM: Industry expected to perform in-line with the relevant market benchmark
- UNDERPERFORM: Industry expected to underperform the relevant market benchmark
Disclaimer
- This report is for informational purposes only and not tailored to individual investors.
- Past performance does not guarantee future results.
- Investors are advised to consult with a financial advisor before making investment decisions.
- CMBIGM is not liable for any losses or damages incurred from reliance on this report.
- The information is based on publicly available data and is not guaranteed for accuracy or completeness.
