BYD ELECTRONIC (00285) has been deeply engaged in the automotive electronics sector, possessing strong technical expertise in areas such as smart cockpits, intelligent driving, and various core automotive components. Multiple products have achieved mass installation and supply to mainstream automakers, with shipment volumes for businesses like intelligent driving continuing to rise. It is projected that the company will achieve revenues of 183.0 billion yuan, 201.2 billion yuan, and 225.3 billion yuan for the years 2026, 2027, and 2028, respectively, with net profits attributable to shareholders of 2.6 billion yuan, 4.0 billion yuan, and 5.5 billion yuan, respectively, maintaining a 'Buy' rating.
The main viewpoints are as follows:
Accelerated Implementation of Computing Power Infrastructure, Liquid Cooling and Power Supply Business Unlock Growth Potential The focus of AI industry development has gradually shifted from model training to inference applications. Hyperscale data centers and cloud service providers continue to increase investment and advance application-side deployment, accelerating the construction of global computing power infrastructure. As the power consumption of individual AI chips exceeds the kilowatt level and the power of single cabinets leaps to the megawatt level, traditional low-voltage power supply systems can no longer support the explosive growth in computing demand. This further drives the accelerated adoption of 800V high-voltage direct current architecture in AI data centers, intensifying the demand for industry-wide cooling and power supply upgrades. Currently, the company has successfully onboarded several new server customers, achieving year-on-year growth in server shipments. Multiple liquid cooling products have completed relevant certifications and entered the small-batch trial production phase, while several power supply products are steadily progressing in research and development, continuously injecting new momentum into business growth. In 2025, the company's AI computing power infrastructure business generated approximately 943 million yuan in revenue, a year-on-year increase of 31.70%, highlighting its growth potential amid the industry's high-growth cycle.
Rapid Development of Electrification and Intelligence Drives Strong Growth in Automotive Electronics Business China's new energy vehicle industry has long maintained a leading global position, with production and sales volumes leading the world for several consecutive years. In 2025, production, sales, and export volumes all achieved significant growth, and the share of new energy vehicles in domestic new car sales exceeded 50% for the first time, marking the industry's official entry into an era dominated by new energy. Driven by policy support and technological iteration, the industry is transitioning from electrification to intelligent upgrades. The adoption of advanced intelligent driving is accelerating and becoming more widespread, with delivery volumes and penetration rates of city navigation-assisted driving models rapidly increasing, continuously expanding the market space for intelligent driving. The company has deep expertise in automotive electronics, with strong technical accumulation in smart cockpits, intelligent driving, intelligent suspension, vehicle thermal management, and various core automotive components. Multiple products have achieved mass installation and supply to mainstream automakers, and shipments for businesses such as intelligent driving, suspension, and thermal management continue to rise. Full-year revenue from the new energy automotive business reached 27.027 billion yuan, a year-on-year increase of 27.69%, accounting for 15.06% of total revenue.
Mild Recovery in Smart Terminal Market, Clear Trend Toward High-End Innovation Global shipments of mobile phones, PCs, and tablets are steadily recovering, with the industry upgrading toward high-end and innovative products. The foldable phone market is steadily expanding, and new technologies such as generative AI and satellite communication continue to empower terminal product upgrades. Faced with external pressures such as fluctuations in overseas market demand, supply chain disruptions, and a relatively weak consumer market, the company continues to consolidate its leading industry position. Leveraging strong manufacturing capabilities and technological advantages, it deepens cooperation with top-tier customers and continuously enriches its product portfolio. The terminal assembly business achieved stable growth due to increased share from major overseas customers. The high-end flagship mobile phone components business maintains a core position in the supply chain, though component revenue faced pressure due to adjustments in customer product line structures. For the full year, the company's smart terminal business generated revenue of 151.507 billion yuan, including 29.331 billion yuan from components business and 122.176 billion yuan from complete assembly business. The overall business operates steadily, reinforcing its fundamental strengths.
Risk Warnings Risks include potential shortfalls in technological iteration and R&D investment, intensified industry competition, instability in customer cooperation, and weaker-than-expected downstream demand.
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