Core Viewpoint - Dongwu Securities International initiates coverage on Joyson Electronics (00699) with a "Buy" rating, projecting revenue growth from 62.6 billion to 71.9 billion CNY from 2025 to 2027, and net profit growth from 1.6 billion to 2 billion CNY during the same period [1] Group 1 - Joyson Electronics is a global automotive technology supplier based in China, covering automotive safety, electronics, and key components for robotics [2] - The company is transitioning from the "Takata integration shadow" to a new phase characterized by "global safety cash cow + smart automotive Tier 1 + robotics second curve" [2] - The safety business is expected to maintain stable revenue growth in the coming three years, supported by the clearing of historical recall and restructuring costs, alongside increasing orders for new energy vehicles [2] Group 2 - The automotive electronics segment focuses on smart cockpits, connected vehicles, ADAS/domain control, and new energy management systems, with a comprehensive product line and platform-based R&D system [3] - The company is gaining high-end model project allocations due to its local responsiveness and global project experience, achieving breakthroughs in key domain control products [3] Group 3 - The company is strategically expanding into robotics, developing integrated solutions for robotic control and collaborating with leading robotics players [4] - Although the robotics business is currently in an early investment phase, it is expected to generate meaningful revenue within 3-5 years, potentially leading to valuation premiums [4]

Core Viewpoint - Dongwu Securities International initiates coverage on Joyson Electronics (600699) with a "Buy" rating, projecting revenue growth from 2025 to 2027 at 626/670/719 billion CNY, representing year-on-year increases of +12%/+7%/+7%, and net profit attributable to shareholders at 16/18/20 billion CNY, reflecting year-on-year growth of +67%/+12%/+11% [1] Group 1 - Joyson Electronics is a global automotive technology supplier based in China, covering automotive safety, electronics, and key components for robotics [2] - The company is transitioning from the "Takata integration shadow" to a new phase characterized by "global safety cash cow + smart automotive Tier 1 + robotics second curve," with three core investment logic points [2] Group 2 - As one of the top three global automotive safety suppliers, Joyson Electronics is entering a new phase of cash flow recovery, with stable revenue in the hundreds of billions CNY range from safety business, expected to maintain mid-to-high single-digit revenue growth over the next three years [3] - The automotive electronics segment focuses on smart cockpits, connected vehicles, ADAS/domain control, and new energy management systems, with a complete product line and platform-based R&D system [3] Group 3 - The company is strategically positioning itself in the robotics sector, developing integrated solutions for robotic control and collaborating with leading robotics players, which may lead to meaningful revenue growth in 3-5 years [4]

Core Viewpoint - Dongwu Securities (Hong Kong) initiates coverage on Joyson Electronics (600699)(00699) with a "Buy" rating, highlighting its transition from the "Takata integration shadow" to a new phase characterized by "global safety cash cow + intelligent automotive Tier 1 + robotics second curve" [1] Group 1: Automotive Safety Business - Joyson Electronics has become one of the few suppliers capable of providing a complete passive safety system to multinational automakers, following the acquisition of KSS and Takata assets, with stable safety business revenue in the hundreds of billions [2] - The company is expected to achieve mid-to-high single-digit revenue growth in its safety business over the next three years, with steadily improving gross margins contributing to stable cash flow [2] Group 2: Intelligent Automotive Tier 1 - The automotive electronics segment focuses on smart cockpits, intelligent networking, ADAS/domain control, and new energy management systems, establishing a comprehensive product line and platform-based R&D system [3] - The company is continuously securing mid-to-high-end model projects due to its local responsiveness and global project experience, with breakthroughs in key domain control products like the Central Computing Unit (CCU) [3] Group 3: Robotics Business Development - Joyson Electronics is extending its automotive safety and electronic technology capabilities into robotics, launching integrated solutions for robotic control and collaborating with leading robotics players [4] - Although the robotics business is currently in an early investment phase, it is expected to generate meaningful revenue within 3-5 years, potentially leading to valuation premiums [4] Group 4: Financial Projections - Revenue projections for 2025-2027 are estimated at 62.6 billion, 67 billion, and 71.9 billion yuan, representing year-on-year growth of 12%, 7%, and 7% respectively, with net profit attributable to shareholders expected to reach 1.6 billion, 1.8 billion, and 2 billion yuan [5] - The average valuation level for 2026 is projected at a PE of 18x, with a target market capitalization of 35.6 billion HKD and a target price of 23 HKD [5]

Core Viewpoint - Dongwu Securities (Hong Kong) initiates coverage on Junsheng Electronics (00699) with a "Buy" rating, highlighting its transition from the "Takata integration shadow" to a new phase of "global safety cash cow + smart automotive Tier 1 + robotics second curve" [1] Group 1: Automotive Safety Business - Junsheng Electronics has become one of the few suppliers capable of providing a complete passive safety system to multinational automakers, following the acquisition of KSS and Takata assets, with stable safety business revenue in the hundreds of billions [2] - The company is expected to achieve mid-to-high single-digit revenue growth in the safety business over the next three years, with steadily improving gross margins contributing to stable cash flow [2] Group 2: Smart Automotive Tier 1 - The automotive electronics segment focuses on smart cockpits, connected vehicles, ADAS/domain control, and new energy management systems, establishing a comprehensive product line and platform-based R&D system [3] - The company is continuously securing mid-to-high-end model projects due to its local responsiveness and global project experience, with breakthroughs in key domain control products like the Central Computing Unit (CCU) [3] Group 3: Robotics Business Development - Junsheng Electronics is extending its automotive safety and electronic technology capabilities into robotics, launching integrated solutions for robotic control and collaborating with leading robotics players [4] - Although the robotics business is currently in an early investment phase, it is expected to generate meaningful revenue within 3-5 years, providing valuation premiums [4] Group 4: Financial Projections - Revenue projections for 2025-2027 are estimated at 62.6 billion, 67 billion, and 71.9 billion yuan, with year-on-year growth rates of 12%, 7%, and 7% respectively [5] - Net profit attributable to the parent company is projected to be 1.6 billion, 1.8 billion, and 2 billion yuan for the same period, with year-on-year growth rates of 67%, 12%, and 11% respectively [5]

Core Insights - Junsheng Electronics (600699) held a performance briefing for Q3 2025, focusing on the latest developments in its robotics business [1] - The company aims to provide integrated solutions for global automotive and robotics companies, including key components such as brain controllers, energy management modules, and high-performance materials [1] Group 1: Business Strategy - In early 2025, the company launched a dual-driven strategy of "Automotive + Robotics Tier 1," focusing on core robotic components and assembly solutions [1] - The strategy includes systematic support for global robotics companies in product development and manufacturing, promoting the application of robotics in various scenarios [1] Group 2: Domestic Collaborations - Junsheng Electronics has partnered with leading domestic clients such as Zhiyuan Robotics and Galaxy General, achieving mass supply of customized main control boards [1] - The company is also supplying various precision IMUs and customized fisheye cameras, along with developing battery packs with high energy density and smart battery management systems [1] Group 3: International Collaborations - The company has delivered components such as robot back heads, necks, shoulders, knees, and fingers to a leading overseas robotics company [2] - Junsheng Electronics is exploring next-generation head display solutions and collaborating with another overseas robotics company for end logistics and food delivery robots [2]

Core Viewpoint - The company, Junsheng Electronics, is focused on providing key components and integrated solutions for global automotive and robotics industries, including control systems and energy management modules [1] Domestic Clients - The company has established partnerships with leading domestic clients such as Zhiyuan Robotics and Galaxy General, successfully delivering customized main control boards in bulk [1] - Various precision IMUs and customized fisheye cameras are being sampled, along with the development of battery packs that integrate high energy density cells and smart battery management systems [1] - The company is also producing high-power wireless charging products that support fast charging for its domestic clients [1] Overseas Clients - Junsheng Electronics has delivered components such as robot backheads, necks, shoulders, knees, and fingers in bulk to a leading overseas robotics company [1] - The company is exploring next-generation head display solutions and head assembly supply with this overseas client [1] - Additionally, the company is collaborating with another overseas robotics firm on robots designed for end logistics and food delivery [1]

Core Viewpoint - The company held a half-year performance briefing on September 4, 2025, to discuss its financial results and address investor inquiries regarding its business operations and future strategies [1]. Group 1: Performance and Financials - The company's automotive safety business achieved a gross profit margin of approximately 15.9% in the first half of 2025, an increase of about 2.0 percentage points year-on-year, driven by order price growth and economies of scale [2]. - The company is implementing cost improvement measures, including optimizing raw materials and vertically integrating the supply chain, with plans to expand its gas generator production base in Huzhou, Zhejiang, to increase self-supply of core components [2]. - The company aims to continue enhancing its gross profit margin in the automotive safety sector through various profitability measures and by optimizing global production capacity [2]. Group 2: Robotics Business Development - The company is providing key components and integrated solutions for humanoid robots to global automotive and robotics companies, with significant collaborations established with leading domestic clients [2]. - The company has initiated the development of customized robotic domain controllers based on NVIDIA's Jetson Thor chip, which is expected to enhance its product line [4]. - The company is focusing on Tier 1 clients in the robotics sector, including both automotive companies and various robotics firms, to expand its customer base [4]. Group 3: Debt Management and Future Plans - The company reported an increase in interest-bearing debt due to optimizing liquidity and financing structure, while also addressing the impact of currency fluctuations on its debt levels [2]. - The company is actively working to improve its asset-liability structure and reduce debt costs through refinancing strategies, with expectations of a decrease in interest-bearing debt as operational cash flow improves [2]. Group 4: Market Expansion - The company submitted an application for the issuance and listing of H shares on the Hong Kong Stock Exchange on August 7, 2025, and is actively progressing with this initiative [2].