BYD Electronic Earnings: New Nonsmartphone Launches to Lift Margins, but Shares Are Fully Priced In

No-moat BYD Electronic, or BYDE, recorded mixed results for its March quarter, but we believe it is on track to achieve our full-year estimates. As such, we maintain our estimates for BYDE’s earnings and its HKD 30 per share fair value estimate. We view BYDE as fairly valued, and further upside to our fair value would come from the firm leveraging Jabil’s know-how in precision manufacturing and material science to expand into higher-end and more profitable nonconsumer electronics applications, such as automotive and servers.