BYD Electronic Earnings: Better Automotive Sales Offset a Lower Contribution From Jabil Acquisition

We maintain our fair value estimate for BYD Electronic, BYDE, at HKD 30 as the better-than-expected outlook and performance of its new energy vehicle, or NEV, segment offsets the softer recovery of its consumer electronics segment, as well as a lower-than-expected 2024 revenue contribution from its acquisition of Jabil’s consumer electronics business. We view BYDE’s shares as fairly valued, with the upside catalyst being faster than expected order wins in iPhone assembly or if it starts to supply more crucial automotive parts, such as connectors and sensors, rather than mainly electronics assembly.