BYDE (285 HK) Summary
Core Content and Business Outlook
BYDE's management remains optimistic about the company's business outlook for 2025-2027, citing strong growth drivers in several key segments:
- Consumer Electronics: Expected to benefit from share gains in iPad and glass cover products, as well as the launch of a new smart home product and potential foldable phone business in 2026.
- Automotive Business: Anticipated to grow significantly, with sales targets of RMB30bn in 2025 and RMB40bn in 2026. The business is expected to see value content per car increase to RMB5k+ in 2025, driven by ADAS, cockpit, thermal, and smart suspension product ramp-ups.
- AI Server Business: Projected to grow from RMB3bn in 2025 to RMB10bn in 2026, focusing on OEMs and liquid cooling components, especially for US CSP clients.
Management also indicated that concerns over recent US tariffs, H20 ban, and auto price cuts are overblown, with the company on track to meet its 2025 revenue target of RMB190-210bn.
Financial Highlights
Revenue and Growth Projections
| Year |
Revenue (RMB mn) |
YoY Growth (%) |
| FY23A |
129,957 |
21.2% |
| FY24A |
177,306 |
36.4% |
| FY25E |
199,303 |
12.4% |
| FY26E |
226,426 |
13.6% |
| FY27E |
246,790 |
9.0% |
Net Profit and Growth Projections
| Year |
Net Profit (RMB mn) |
YoY Growth (%) |
| FY23A |
4,041.4 |
28.0% |
| FY24A |
4,265.6 |
24.2% |
| FY25E |
5,458.0 |
27.0% |
Earnings Per Share (EPS)
| Year |
EPS (Reported) |
Consensus EPS |
YoY Growth (%) |
| FY23A |
1.89 |
N/A |
- |
| FY24A |
2.42 |
N/A |
- |
| FY25E |
3.01 |
2.43 |
28.0% |
P/E and P/B Ratios
| Year |
P/E (x) |
P/B (x) |
Yield (%) |
| FY23A |
15.9 |
2.2 |
1.9 |
| FY24A |
15.1 |
2.0 |
2.0 |
| FY25E |
11.8 |
1.8 |
2.5 |
| FY26E |
9.5 |
1.6 |
3.2 |
| FY27E |
7.5 |
1.4 |
4.0 |
Return on Equity (ROE)
| Year |
ROE (%) |
| FY23A |
14.7 |
| FY24A |
13.8 |
| FY25E |
15.9 |
| FY26E |
17.6 |
| FY27E |
19.6 |
Valuation and Investment Recommendation
- Target Price: HK$43.22
- Upside/Downside: 38.7%
- Current Price: HK$31.15
- Valuation Approach: SOTP (Sum of the Parts) based, reflecting the diversified growth potential across different business segments.
- P/E Implied: 16.2x for FY25E and 9.5x for FY26E
- Investment Recommendation: Maintain BUY, due to the attractive risk-reward ratio and positive outlook on new business opportunities in 2026-2027.
Revenue Breakdown
| Segment |
FY22 |
FY23 |
FY24 |
FY25E |
FY26E |
FY27E |
| Assembly |
68,054 |
83,783 |
105,575 |
109,820 |
117,406 |
117,772 |
| Components (metal/glass/plastic) |
14,155 |
13,637 |
35,658 |
36,930 |
40,891 |
43,307 |
| Glass/Ceramic |
5,130 |
5,143 |
5,349 |
8,110 |
8,921 |
9,813 |
| Jabil Component |
- |
- |
19,170 |
19,395 |
22,259 |
23,679 |
| New Intelligent |
15,207 |
18,441 |
15,560 |
21,784 |
25,052 |
27,557 |
| Auto Intelligent |
9,263 |
14,096 |
20,513 |
30,770 |
43,077 |
58,154 |
| E-cigarette |
1,540 |
2,062 |
2,165 |
2,273 |
2,273 |
2,273 |
| Household Energy Storage |
1,500 |
2,115 |
1,325 |
1,457 |
1,603 |
1,683 |
Key Business Segments
- Assembly: Expected to grow by 4% in FY25E and 7% in FY26E.
- Components (metal/glass/plastic): Growth is expected to slow slightly in FY25E (4%) but continue in FY26E (11%).
- New Intelligent Products: Significant growth expected, with an increase from RMB15,560 in FY24 to RMB27,557 in FY27E.
- Auto Intelligent: Strong growth trajectory, increasing from RMB20,513 in FY24 to RMB58,154 in FY27E.
Earnings Forecast
| Metric |
FY22 |
FY23 |
FY24 |
FY25E |
FY26E |
FY27E |
| Gross Profit |
6,350 |
10,434 |
12,301 |
14,929 |
17,748 |
20,831 |
| Gross Profit Margin (%) |
5.9 |
8.0 |
6.9 |
7.5 |
7.8 |
8.4 |
| Operating Profit |
611 |
3,705 |
3,927 |
5,362 |
6,879 |
8,985 |
| Operating Margin (%) |
1% |
3% |
2% |
3% |
3% |
4% |
| Net Profit |
1,858 |
4,041 |
4,266 |
5,458 |
6,778 |
8,610 |
| Net Profit Margin (%) |
1.7% |
3.1% |
2.4% |
2.7% |
3.0% |
3.5% |
Financial Ratios
| Ratio |
FY22 |
FY23 |
FY24 |
FY25E |
FY26E |
FY27E |
| Current Ratio (x) |
1.3 |
1.0 |
1.2 |
1.2 |
1.2 |
1.2 |
| Receivable Turnover Days |
33.6 |
47.0 |
36.5 |
36.5 |
36.5 |
36.5 |
| Inventory Turnover Days |
50.0 |
54.3 |
45.6 |
45.6 |
45.6 |
45.6 |
| Payable Turnover Days |
61.0 |
79.3 |
56.2 |
56.2 |
56.2 |
56.2 |
Shareholding and Stock Data
| Metric |
Value (HK$ mn) |
| Market Cap |
70,187.3 |
| Avg 3 mths t/o |
926.6 |
| 52w High/Low (HK$) |
60.60/25.35 |
| Total Issued Shares (mn) |
2253.2 |
Analysts and Ratings
- Analysts: Alex NG, Hanqing LI
- Rating: BUY
- CMBIG Ratings:
- BUY: Potential return of over 15% over next 12 months
- OUTPERFORM: Industry expected to outperform the relevant broad market benchmark over next 12 months
- MARKET-PERFORM: Industry expected to perform in-line with the relevant broad market benchmark over next 12 months
Disclaimer
This report is not intended as investment advice and is subject to change. CMBIGM is not registered in the US, and this report is intended for major US institutional investors only. The report may not be distributed to any other person in the US. Investors should consult a professional financial advisor for personalized advice.
