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3、ch reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment decision.Refer to important disclosures on page 10 to 12.Analyst Ce

4、rtification on page 7.Price Objective Basis/Risk on page 7.12866611 BYD Electronic Downgrade to Neutral:Apple business faces risk,partially offset by solid auto Rating Change:NEUTRAL|PO:42.00 HKD|Price:40.32 HKD Down to Neutral,cut PO to HK$42:competition intensifies We downgrade BYD Electronic(BYDE

5、)to Neutral from Buy.We see stiff competition in iPhone casing from peer Lens Technology(Lens Tech)from 2H25,which could weigh on already softened consumer electronics sales.Still,we expect auto sales to be robust at 36%2024-27E CAGR,backed by parentco,partially offsetting negatives.We cut our 2025-

6、27E earnings estimates by 1-11%to reflect risks in the smartphone business and hence lower our PO to HK$42(14x 2026E P/E,unchanged)from HK$43.We think that our 14x P/E(below historical average)is justified by slower earnings amid intensified competition.After the stock rallied 21%this month on highe