所有战线为26E年铺平道路

Company Updateprice 1H25 resulta mixed bag,net profit in-line thanks to stringent costcontrol 5 September 2025 BYDE’s1H25result wasa mixed bag,with revenue and net profiteach grew2.6%/14.0%to RMB80.6bn/RMB1,730mn respectively.Revenue arrived~6% belowBloomberg consensus, while net profitcame in largely in-line with Bloomberg consensus.BYDE’s 1H25revenue and net profit reached 40%/32% of our FY25E estimates.Thebottom line was supported byi)GMedged up 0.1ppt Yoy to 6.9%(vs.FY25Econsensus at7.3%),ii) lower R&D ratio (2.8% vs. 3.1%of revenue)as a result of many AIS projects entered massproductionsupported the bottom line,and iii)reversal ofRMB43.6mn financial assets’ impairment. Hayman Chiuhayman.chiu@cinda.com.hk(852) 2235 7677 Trading data 52-Week Range (HK$)3 Mth Avg Daily Vol (m)No of Shares (m)Market Cap (HK$m)MajorShareholders (%)AuditorsResultDue61.55/24.8525.32,253.292,787.0BYD(65.6%)Ernst & Young3Q25E:Oct 2025 Though BYDE still facing near term pressure in new intelligent segmentand also guided down AIS revenue growth guidance due to industry’sinvolution impact, Management provided a positive outlook for allsegmentsin FY26E.We still expect BYDE’s GM would improvesequentiallythanks tocontinueoptimization of Jabil operation,gainingmore share inkey US client’sprojects(with increasingshare inhighendcomponents)+stable Android demand to drive consumerelectronics (assembly+components) segment,meanwhile AI serverwould be another upcoming growth driver,automotive segmentgrowthwould continue outperform overall revenue growth. Companydescription Establishedin2002,BYDEisaleadingmanufacturer of handset components and modules,such as plastic casing, metal casings, and keypads.It also provides assembly services for handsets.Itsparent company,BYD (1211.HK) keeps some ofhandset components and modules, such as LCDdisplays, FPCs,andcamera modules. Its customersincludeSamsung (005930 KS),Nokia (NOK.US),Huawei,BBK,OPPO,Toshiba(6502.JP),Asus(2357.TT), HTC (2498.TT) and HP (HPQ.US). Stable 2H25 outlook for consumer electronics;Expect morehighendproject wins fromkeyUS client; Asa result of lukewarm smartphone market(shipment grew+1.5%/1.0% Yoy in 1Q25/2Q25),BYDE’s assembly service revenuewasmarginally down by 2%Yoy in 1H25 to RMB47.2bn,whilecomponents revenuedropped 10%Yoyto ~RMB13.8bn.Managementwould expect Jabil revenue to be flattish at most Yoy in FY25E, aspartial change innew flagship models’ material(from titanium toaluminum,hence with lower ASP),while GM would be similar to FY24,thanks tocontinued improvement in operational efficiency. After having acquiredJabil Singapore (include Chengdu and Wuximanufacturing sites), BYDE targetscontinue to engagein keyUSclients’high end/flagship projects(both components and assembly),which would bringbothsynergy andimprovedearnings to BYDE in thelong run. Looking forward to FY26E, BYDE expects Jabil business to grow >50%Yoyand webelieve the more titanium casing will be adopted in moremodelsas well as the rumoured first ever foldable smartphone.Meanwhile engaging in more non-smartphone projects (currently 50%share in smart home products) wouldfurther provide upsidefor Jabil’srevenue and profitability. Sources:Bloomberg, CIRL Enriching AI server product portfolio;AISshort termoutlookguided down but increasing dollar contentper carabright spot;Robotics next to watch Segment revenue (new intelligent products + automotive)rose29% Yoy (vs.33.6% CAGR in FY20-FY24) and reachedRMB19.7bn in1H25, accounted for24% of total revenue (vs. 18%/25%/25%/20%in FY21-FY24). During the period, newintelligent product saleswasd down 4% Yoyto RMB7.2bn (~9%of total revenue)due to energy storage business remainedunder pressure.Despite near term pressure persists, we expect new intelligent segment revenue growth would pickupthanks to AI server related business would accelerate from 2H25 onwards.Management shared that AI serverrelatedbusiness revenue was >RMB1bn in 1H25, in which its Nvidia GB200/300 NVL72 racks’ liquid cooling products (incl. quickconnectors, cold plate and manifolds) were qualified by NVDA. BYDE aims to begin shipment in 2H25 and expects massshipment in FY26E. In addition, Management expects domestic AI servers will also begin to adopt liquid cooling (vs. currently using air coolingdue to GPU constraints), hence further expanding the total addressable market.AI products (including AI servers, liquidcooling, power supply, AIedge computing and AIPC etc) would be another growth driver in the coming years driven byboth international customers and local CSPs. BYDE will provide customized servers for China internet customers, as wellas standardized products to domestic cloud service providers. BYDE also unveiled itsplan in optical module products, for optical transceivers, BYDE addressed that it already has theability to mass produce 800G products, andaims to reach 50k unit shipment / month inFY25.BYDE also mentionedduring the result call that its CPO (Co-packaged optics) products a