---
title: "Bank of America Securities: Lowers BYD ELECTRONIC target price to HKD 40, reiterates \"Neutral\" rating"
description: "Bank of America Securities released a research report stating that BYD Electronic's third-quarter performance was below expectations, with a net profit of 1.4 billion yuan (the same below), a quarterl"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/263692717.md"
published_at: "2025-10-31T08:55:04.000Z"
---

# Bank of America Securities: Lowers BYD ELECTRONIC target price to HKD 40, reiterates "Neutral" rating

> Bank of America Securities released a research report stating that BYD Electronic's third-quarter performance was below expectations, with a net profit of 1.4 billion yuan (the same below), a quarterly increase of 27%, and a year-on-year decrease of 9%, only reaching 29% and 27% of the bank's and market's annual estimates, respectively, and lower than the 32-38% level of the same period in the past three years. The quarterly gross profit margin decreased by 0.5 percentage points quarter-on-quarter and fell by 1.6 percentage points year-on-year to 6.9%. Bank of America Securities lowered its earnings forecast for BYD Electronic for 2025 to 2027 by 4 to 8% to reflect the slowdown in growth and lackluster outlook in the third quarter. The target price was reduced from HKD 45.5 to HKD 40, maintaining the 2026 forecast price-to-earnings ratio at 14 times. The stock is currently trading at a 2026 expected price-to-earnings ratio of 13 times, which is still undervalued compared to the average price-to-earnings ratio of 26 times in the Apple supply chain peers. Based on reasonable valuation, the "Neutral" rating is reaffirmed

According to the Zhitong Finance APP, Bank of America Securities released a research report stating that BYD Electronic (00285) reported third-quarter results that missed expectations, with a net profit of 1.4 billion yuan (the same below), a quarter-on-quarter increase of 27%, and a year-on-year decrease of 9%. This only reached 29% and 27% of the bank's and the market's full-year estimates, respectively, and is lower than the 32-38% level of the same period in the past three years. The quarterly gross profit margin decreased by 0.5 percentage points quarter-on-quarter and fell by 1.6 percentage points year-on-year to 6.9%. Bank of America Securities has lowered its profit forecasts for BYD Electronic for 2025 to 2027 by 4% to 8% to reflect the slowdown in growth and lackluster outlook in the third quarter. The target price has been reduced from HKD 45.5 to HKD 40, maintaining the 2026 forecast price-to-earnings ratio at 14 times. The stock is currently trading at a 2026 expected price-to-earnings ratio of 13 times, which is still undervalued compared to the average price-to-earnings ratio of 26 times for peers in the Apple supply chain. Based on reasonable valuation, the "Neutral" rating is reiterated

### Related Stocks

- [00285.HK - BYD ELECTRONIC](https://longbridge.com/en/quote/00285.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.