On September 3, BYD ELECTRONIC fell 3.02% in regular trading, trading at HK$25.08/share, with turnover of HK$102 million, extending its recent weakness.

The decline comes as the company recently reported H1 results significantly below expectations. Revenue reached RMB 82.234 billion, up just 2.02% year-over-year, while attributable profit plummeted 75.35% to RMB 426 million, with EPS dropping from RMB 0.77 to RMB 0.19. Gross margin contracted sharply from 6.88% to 4.91%, primarily due to product mix changes and foreign exchange losses. AI computing infrastructure revenue declined 10.57% year-over-year.

The weak results prompted multiple investment banks to slash forecasts. Morgan Stanley cut its earnings estimate by 68% and lowered its target price from HK$39 to HK$33, while maintaining an Overweight rating. Jefferies reduced its target from HK$29 to HK$25, keeping a Hold rating. Morgan Stanley noted that Q2 net profit still fell 64% year-over-year but expects sequential improvement in H2 driven by peak-season demand and liquid cooling capacity ramp-up.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)