[ET Net News Agency, 3 November 2020] Credit Suisse lowered its target price for BYD
Electronic (00285) to HK$33.6 from HK$34 and downgraded its rating to "underperform" from
"neutral".
BYDE guided full-year revenue Rmb70-75bn and net profit Rmb5-5.5bn, implying 4Q revenue
Rmb18bn-23bn and net income Rmb0.7bn-1.2bn. Management suggested 4Q profit is mainly from
its original business and mask business is expected to further decline.
BYDE targets component and assembly across Watch, iPad, Airpod, and iPhone. iPhone glass
may ship from 2022. Airpod EMS (energy management system) also another potential growth.
BYDE increased EMS capacity for Xiaomi to 7-8 mn per month in early 2021 and targets 100
mn shipments in 2021.
Credit Suisse trimmed its 2020-22 earnings forecast by 40%/15%/0% due to lower revenue
and GM. (KL)