BYDE will report FY24E results in March. We estimate FY24E revenue/NP growth of 36%/13% YoY and 4Q24E revenue/NP growth of 46%/49% YoY, driven by share gains in iPad/iPhone, Android recovery, Jabil consolidation, strong NEV sales backed by BYD and emerging AI server business. Looking into FY25/26E, we revised up FY25-26E EPS estimates by 6-7% to reflect Jabil’s enhanced efficiency, iPad new order wins, China national smartphone subsidy, fast-growing high-end ADAS and NEV products (thermal, suspension system), and AI server OEM/components ramp-up. We raise our SOTP-based TP to HK$48.66, implying 15.5x FY25E P/E. Trading at 13.9x/11.0x FY25/26E P/E, we believe the stock is attractive, compared to 42%/26% EPS growth in FY25/26E. Reiterate BUY.
　　4Q24E preview: expect a strong quarter on iPad/iPhone and NEV sales. For 4Q24E, we expect strong earnings growth of 49% YoY (vs +1%/-14% YoY in 3Q/2Q24), backed by 46% YoY sales growth, improving GPM on better product mix and enhanced efficiency of Jabil’s integration. In particular, we believe 4Q sales growth was driven by iPad/iPhone product cycle and NEV product ramp-up (esp. thermal, suspension system). Despite softer new intelligent biz in 4Q, we expect AI server biz to offset weakness in household energy storage. Overall, we expect revenue/net profit to deliver 36%/13% YoY growth in FY24E.
　　2025 outlook: strong product roadmap in iPad/iPhone, NEV and AI server products. Looking into 2025, we are positive on BYDE’s leading customers’ order pipeline: 1) Apple: share gains in iPhone’s components, order in new iPad models, Jabil’s enhanced efficiency; 2) Android: stable growth backed by China national smartphone subsidy; 3) Auto: strong product offerings to BYD, such as suspension, thermal management and high-end ADAS following BYD’s CNOA launch on 24 Dec; 4) AI server: ramp-up of OEM and component business (liquid cooling, power, CDU); 5) Robotics: Nvidia-backed AMRs for factory automation.
　　Raise TP to HK$48.66; Reiterate BUY. We remain positive on BYD’s share gains in iPad/iPhone, stable Android demand, China national smartphone subsidy, ADAS/NEV products and AI server pipeline in 2025/26E. We revised up our FY25-26E EPS estimates by 6-7% to factor in Jabil’s enhanced efficiency and multiple growth drivers in FY25-26E. Trading at 13.9x/11.0x FY25/26E, we believe the stock is attractive. Our new SOTP- based TP of HK$48.66 implies 15.5x FY25E P/E. BUY.