BYD-E’s 3Q26 result was a miss due to smartphone weakness: revenue grew 6% YoY while GP and NI fell 31% YoY and 61% YoY respectively. Despite persistent headwinds across the consumer electronics segment in 2026 and 2027, we believe smartphone form factor changes towards more Titanium content of the US key client in 2027 will effectively offset such down cycle. Furthermore, continuous volume scaling across AI infrastructure and content value growth per car in AIS in 2027 will likely boost group GPM. Given that current P/E and P/B valuations trade near levels below 2sd from historical averages, and considering BYDE's proven precision manufacturing capabilities transferring into AI infrastructure, we view current price levels as an attractive entry point. We maintain our BUY rating with TP of HK$33.7, based on 15x FY27 EPS.