G Sachs downgraded BYD ELECTRONIC from 'Neutral' to 'Sell' due to elevated memory costs impacting demand for consumer electronics and electric vehicles. The company's gross margin is expected to be only 4% to 5% in the near term, making it difficult to achieve the previously anticipated gross margin target of 8% to 9% for 2026 to 2028. Additionally, BYD ELECTRONIC's revenue forecasts for the next few years have been reduced, and the company is underperforming because it generates a smaller portion of revenue from AI servers.
