According to a research report published by DBS, BYD Electronics is shifting from an EMS model centered on mobile phones to higher-value liquid-cooled heat dissipation, power supply, and automotive electronics businesses. The latest generation liquid-cooled cold plate project has entered mass production, and various servers have been shipped in batches. Although AI infrastructure is currently insufficient to offset the pressure on the smart terminal business in FY2026, it can provide a clearer growth path. The bank extended the valuation base to 2027, shifting the target price-earnings ratio from 16 times in 2026 to 14 times forecasting in 2027 to reflect the weakening visibility of Apple orders and lowered its profit forecast for the 2027 fiscal year by 3.6%. However, it is expected that AI infrastructure will drive a critical evaluation of next year's valuation, maintain a “buy” rating, and raise the target price from HK$30 to HK$40.

According to a research report published by DBS, BYD Electronics is shifting from an EMS model centered on mobile phones to higher-value liquid-cooled heat dissipation, power supply, and automotive electronics businesses. The latest generation liquid-cooled cold plate project has entered mass production, and various servers have been shipped in batches. Although AI infrastructure is currently insufficient to offset the pressure on the smart terminal business in FY2026, it can provide a clearer growth path. The bank extended the valuation base to 2027, shifting the target price-earnings ratio from 16 times in 2026 to 14 times forecasting in 2027 to reflect the weakening visibility of Apple orders and lowered its profit forecast for the 2027 fiscal year by 3.6%. However, it is expected that AI infrastructure will drive a critical evaluation of next year's valuation, maintain a “buy” rating, and raise the target price from HK$30 to HK$40.