BYDIY - BYD Electronic: Preliminary Results And Major Acquisition Draw Attention (Upgrade)

2024-02-12 16:56:20 ET

Summary

• BYD Electronic (International) Company Limited's earnings are estimated to have expanded by +116% in FY 2023 as per the company's preliminary financial numbers.
• The company has the potential to generate higher sales from Apple in the future by leveraging on the recent purchase of Jabil's manufacturing assets in China.
• I raise my rating for BYD Electronic to a Buy after reviewing its preliminary results and assessing its latest M&A deal.

Elevator Pitch

I have a Buy investment rating for BYD Electronic (International) Company Limited ( BYDIF ) (BYDIY) [285:HK]. Previously, I touched on the risk relating to the company's customer concentration, and BYDIF's efforts to diversify its client mix in my June 1, 2020 article ....

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