Citigroup: Downgrades BYD Electronic's target price to HK$22.6, weak consumer electronics business.

Citigroup released a report stating that BYD Electronic's management expects revenue to remain flat in 2026, with stable performance in the component business and iOS EMS business, but a decline in Android EMS business. The automotive business will grow along with the BYD Group, and AI business revenue is expected to reach tens of billions of yuan. The report also mentioned that BYD Electronic's management anticipates growth in the component business, primarily due to the launch of new iOS models and material upgrades. AI business revenue is projected to reach 10 billion yuan by 2027. Citigroup lowered BYD Electronic's target price from 43.4 Hong Kong dollars to 22.6 Hong Kong dollars and downgraded its rating from "buy" to "sell", mainly due to weak performance in consumer electronics business and lower-than-expected growth in the automotive business.