According to HKEx disclosure documents, BYD Electronics (International) Limited (BYD Electronics) announced its semi-annual earnings forecast for 2023 on July 14.。The report shows that for the six months ended June 30, 2023, the company's profit attributable to shareholders may increase by 115% -146% year-on-year compared to the same period last year of 633,798,000 yuan (RMB, the same below), which is expected to be gratifying.。

According to the report, as discussed by the Board of Directors of BYD Electronics, the significant increase in the Company's profit attributable to shareholders during the period was mainly due to the significant increase in the Company's share of the supply chain of major customers in the North American market, as well as the active expansion of energy storage markets around the world (through private label and OEM), and the strong momentum of emerging businesses such as new energy vehicles and new smart products cannot be ignored.。In addition, BYD Electronics is committed to improving capacity utilization and further optimizing its business structure, which has a positive impact on the significant improvement in profitability.。It is understood that the company plans to report interim results by the end of August.。

Boosted by this news, major banks have issued research reports expressing optimism about the company:

Lyon pointed out in the report, BYD Electronics released earnings, is expected to end the first half of June net profit or year-on-year increase of 1.15 times to 1.46 times, mainly driven by rising customer business in North America, new energy vehicles and new smart products.。As a result, the bank raised its earnings forecast for this year to the following year and lowered its price target from 27.HK $5 to HK $31, rating also raised from "outperform" to "buy."。

Citi reports that it expects BYD Electronics' first-half net profit to rise 115% -146% year-on-year to 13.6.3 billion - 15.$5.9 billion, 18% and 27% higher than the bank and market expectations on a median basis; implying a net profit of 9% in the second quarter..$0.4 billion to $1.1 billion, up 99% to 42% YoY, up 97% to 140% YoY, and in median terms, 28% and 45% higher than the bank and market expectations.。

Citi believes BYD Electronics' better-than-expected performance will boost investor confidence and the share price will show an upward trend。The bank has high expectations for BYD Electronics, predicting that its automotive business (ADAS, thermal management systems and chassis) and its development with Huawei are expected to be a catalyst to drive further share price gains in the second half of the year.。Therefore, Citi to BYD Electronics HK $26 target price, rating "buy"。

China Merchants Securities believes that BYD Electronics achieved a net profit of 13 in the first half of the year..600 million to 15.The $600 million forecast indicates that its quarterly profit alone may reach $900 million to $1.1 billion.。The bank noted that BYD's well-ahead-of-expectations second-quarter results benefited from the continued optimization of its business structure, which led to improved earnings。

The bank said that in the short term, the second half of the A customer new products are expected to sell, the company's share is better and is expected to maintain growth; Android business orders in the second half of the year is better than the first half; energy storage and automotive electronics shipments will continue to maintain rapid growth, so the bank expects BYD Electronics in the second half of the overall performance will be better than the first half, and optimistic about its second half earnings continue to optimize the。