This report provides an update on the performance of BYDE, a Chinese technology company. The company's 1Q22 earnings declined by 77.7% YoY, in line with its profit warning, due to weak demand and tightened COVID-19 control on major production bases. The gross profit margin (GPM) reached a historical low of 5.5% in 1Q22 due to lower utilization. Management expects 2Q22 revenue and GPM to improve, driven by new product launches, share gain in Apple products, and automobile business ramp-up. However, the report maintains a conservative revenue estimate of RMB90bn. The stock has underperformed the market over the past 12 months and is currently trading at a target price of HK$12.4.
