| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.80 | -2 |
| Intrinsic value (DCF) | 215.90 | 546 |
| Graham-Dodd Method | 15.10 | -55 |
| Graham Formula | 88.80 | 166 |
BYD Electronic (International) Company Limited is a leading Chinese technology hardware manufacturer specializing in mobile handset components and modules, operating as a subsidiary of Golden Link Worldwide Limited. Founded in 1995 and headquartered in Shenzhen, the company has evolved into a comprehensive electronics manufacturing services provider with expertise in high-level assembly services, battery production, and charging solutions. BYD Electronic serves global markets with its diverse product portfolio including iron phosphate batteries for electric vehicles, chargers, and monorail project development. The company leverages China's manufacturing ecosystem while maintaining international operations, positioning itself at the intersection of consumer electronics and electric mobility infrastructure. With strong parent company backing and vertical integration capabilities, BYD Electronic plays a critical role in the global technology supply chain, particularly in the rapidly growing electric vehicle and mobile device sectors.
BYD Electronic presents a mixed investment profile with several attractive fundamentals offset by sector-specific risks. The company demonstrates solid financial performance with HKD 177.3 billion in revenue and HKD 4.27 billion net income, supported by strong operating cash flow of HKD 6.71 billion. With a low beta of 0.181, the stock offers defensive characteristics relative to market volatility. However, the capital-intensive nature of the business is evident through substantial capital expenditures of HKD 2.85 billion, while moderate debt levels (HKD 12.46 billion) and healthy cash reserves (HKD 7.05 billion) provide financial stability. The dividend yield, while present, may not appeal to income-focused investors. Key risks include dependence on the cyclical electronics manufacturing sector, exposure to global supply chain disruptions, and intense competition in the contract manufacturing space. The company's connection to the broader BYD ecosystem and electric vehicle market exposure provides growth potential but also concentration risk.
BYD Electronic operates in the highly competitive electronics manufacturing services (EMS) and components sector, where it leverages several strategic advantages. The company benefits from vertical integration within the BYD ecosystem, particularly through its expertise in battery technology and electric vehicle components, which differentiates it from pure-play contract manufacturers. This integration allows for cost efficiencies and technological synergies, especially in the growing electric mobility market. The company's strong presence in China provides access to the world's largest manufacturing ecosystem and supply chain infrastructure, enabling competitive pricing and rapid scalability. However, BYD Electronic faces intense competition from both specialized component manufacturers and larger EMS providers with global footprints. The company's focus on mobile handset components exposes it to cyclical demand patterns in the consumer electronics sector, while its electric vehicle-related business faces competition from specialized battery manufacturers. The relatively moderate net income margin (approximately 2.4%) suggests competitive pricing pressure in its core markets. The company's monorail project capability represents a niche diversification but may not significantly contribute to competitive positioning against larger industrial conglomerates.