Summary of the Conference Call Transcript Company Overview - **Company**: Joyson Electronics (均胜电子) - **Industry**: Automotive Safety and Electronics Solutions - **Rating**: Buy with a target price of Rmb 34.20, up from Rmb 21.10 [1][4] Key Points and Arguments Industry Trends - The global automotive industry is undergoing significant electrification and intelligence trends, expected to drive the automotive electronics market with a CAGR of 9.0% from 2025 to 2028 [2][9] - Key growth segments include smart cockpit solutions, intelligent driving solutions, new energy management systems, and intelligent connectivity systems [2][9] Financial Projections - Joyson's net profit is projected to grow at a CAGR of 17% from 2025 to 2028, driven by deepening collaborations with domestic automakers and benefiting from overseas automakers' transitions to electrification and intelligence [3][10] - Revenue is expected to grow at a CAGR of 6.5%, with gross and net profit margins improving from 18.3% and 2.4% in 2025 to 18.4% and 3.2% in 2028, respectively [3][10] Valuation - The valuation is based on a segmented approach: - Automotive safety and other parts: 21.0x 2026E PE - Automotive electronics: 27.5x 2026E PE - Robotics parts: 9.5x 2026E P/S [4][31] - The new target price reflects a 27.5x 2026E PE, indicating a 16% discount compared to peers [4][31] Market Position - Joyson is positioned as a global leader in automotive passive safety and electronics, with a comprehensive product portfolio and a global customer base [1][13] - The company has established over 25 R&D centers and more than 60 production bases worldwide, covering major automakers [13] Growth Opportunities - Joyson has secured projects with leading overseas automakers and a major humanoid robot manufacturer, indicating potential growth in the robotics sector [1][19] - The company is expected to benefit from the increasing demand for automotive electronics due to stricter safety standards and the transition to centralized electronic architectures [9][10] Additional Important Insights - The current stock price of Rmb 26.95 reflects a potential upside, with a risk-reward ratio of 3.1:1 [36] - The company has faced challenges in the past due to significant acquisitions and restructuring, but these impacts are expected to diminish by 2025 [14] - Joyson's revenue growth is primarily driven by the automotive electronics sector, which is anticipated to outperform the traditional automotive safety market [9][10] Conclusion - Joyson Electronics is well-positioned to capitalize on the ongoing transformation in the automotive industry, with strong growth prospects in both automotive electronics and robotics. The current valuation does not fully reflect the company's growth potential, making it an attractive investment opportunity.

Core Viewpoint - The company, Guanghong Technology, has established long-term and stable deep cooperation relationships with numerous leading domestic and international automotive electronic solution providers [2] Group 1 - The company is currently unable to disclose specific supply relationships and cooperation details with certain clients [2] - For information regarding the supply situation of related products, it is advised to consult terminal brands or refer to publicly available information [2]

Core Viewpoint - Western Securities has initiated coverage on Junsheng Electronics, highlighting its position as a leading global provider of smart automotive technology solutions and its recent listing on the Hong Kong Stock Exchange, establishing an "A+H" dual capital platform [1] Group 1: Company Overview - Junsheng Electronics has announced its strategic upgrade to "Automotive + Robotics Tier 1," expanding into the humanoid robotics sector to create a dual-driven growth model [1] - The company serves over 100 global automotive brands, including the top ten manufacturers in China and worldwide, with 74.7% of its revenue projected to come from overseas sales in 2024 [2] - Junsheng Electronics maintains a strong position in automotive safety and electronics, ranking second globally in automotive safety and fourth in intelligent cockpit domain control [2] Group 2: Order and Revenue Growth - The company has secured a record high in new project orders, with a total lifecycle amount of approximately 83.9 billion yuan, and over 60% of these orders are related to new energy vehicles [2] - In the first half of 2025, the company continues to see strong growth in orders, with new project orders amounting to about 31.2 billion yuan, of which over 20.6 billion yuan is related to new energy vehicles, accounting for more than 66% [2] Group 3: Global Operations - Junsheng Electronics has established an efficient global operation system, achieving synchronized R&D, supply chain collaboration, and production sales network with global automakers [3] Group 4: Innovation in Automotive Electronics - The company is positioned in key areas of automotive electronics, including intelligent cockpit domain control, smart connectivity, and intelligent driving, enhancing its competitive edge through a comprehensive product offering [4] - Junsheng Electronics has launched innovative products in the intelligent cockpit sector, including the immersive smart cockpit JoySpace+, which integrates various advanced technologies for an enhanced user experience [5] Group 5: Safety Solutions - The company is innovating in automotive safety products, integrating electronic technology with safety solutions to meet higher demands for both active and passive safety products [6] - New safety products include a zero-gravity seat safety solution and a new generation of optical-enhanced seat belts, aimed at improving safety and comfort [6] Group 6: Robotics Sector Development - Junsheng Electronics is expanding into the robotics sector, leveraging its core automotive component expertise to provide integrated hardware and software solutions for key robotic components [7] - The company has formed strategic partnerships with domestic and international robotics and AI companies to accelerate its smart technology initiatives [8]

Core Viewpoint - Junsheng Electronics (600699.SH) has set its H-share IPO price at HKD 22, representing a 32% discount compared to its latest A-share closing price, amid concerns over its declining revenue and reduced institutional holdings [2][3]. Company Summary - The H-share issuance price corresponds to a price-to-earnings ratio of approximately 25 times, reflecting a rational valuation by overseas institutional investors who primarily view the company as part of the automotive parts sector [3]. - Junsheng Electronics specializes in automotive electronic solutions, safety solutions, and other automotive components, with its automotive electronics segment covering smart cockpits and energy management systems [3]. - The company reported a third-quarter revenue of CNY 15.497 billion, a year-on-year increase of 10.25% but a quarter-on-quarter decline of 1.74%, with net profit attributable to shareholders at CNY 413 million, up 35.40% year-on-year [5]. - The gross profit margin improved to 18.3% for the first three quarters, with the automotive safety business showing a margin of approximately 16.4% [5]. - The company is focusing on cost reduction strategies, including domestic chip production and in-house gas generator manufacturing, which are expected to further enhance gross margins [5]. Industry Outlook - The automotive safety regulations are becoming stricter, leading to an increase in the per-vehicle passive safety costs, projected to rise from approximately CNY 1,500 in 2020 to about CNY 1,800 by 2029 [4]. - The global market for smart cockpit domain controllers is expected to see significant growth, with Junsheng Electronics holding an 8.9% market share, ranking fourth globally [3]. - Concerns have been raised regarding the potential impact of the end of tax exemptions for new energy vehicles in 2026, which may affect market growth rates [9].

Core Viewpoint - Junsheng Electronics (600699.SH) has set its H-share IPO price at HKD 22, representing a 32% discount compared to its latest A-share closing price, with a market valuation based on a P/E ratio of approximately 25 times [1][2] Company Performance - In Q3 2025, Junsheng Electronics reported revenue of CNY 15.497 billion, a year-on-year increase of 10.25% but a quarter-on-quarter decline of 1.74%. The net profit attributable to shareholders was CNY 413 million, up 35.40% year-on-year and 12.37% quarter-on-quarter [3][4] - The company experienced a decline in revenue quarter-on-quarter, but the gross profit margin improved by 2.7 percentage points year-on-year to 18.3% for the first three quarters, with Q3 gross margin reaching 18.6% [4] Market Position and Business Segments - Junsheng Electronics specializes in automotive electronic solutions, safety solutions, and other automotive components, with a significant presence in the intelligent cockpit and safety systems markets [2][3] - The company ranks fourth globally in the intelligent cockpit domain, holding an 8.9% market share with revenue from this segment amounting to CNY 6.3 billion [2] Industry Trends - The automotive safety regulations are becoming stricter, leading to an increase in the per-vehicle passive safety costs from approximately CNY 1,500 in 2020 to an estimated CNY 1,800 by 2029 [3] - The company is focusing on the integration of automotive and robotics industries, positioning itself to provide key components and solutions in the robotics sector [6][7] Shareholder Activity - China Life Insurance reduced its holdings in Junsheng Electronics by over 3 million shares in Q3, now holding 6.1945 million shares, which accounts for 0.44% of the total share capital [4]

Core Viewpoint - Ningbo Joyson Electronic Corp. (Joyson) is preparing for an IPO on the Hong Kong Stock Exchange, having recently disclosed its prospectus after receiving approval from the China Securities Regulatory Commission for overseas listing [2]. Company Overview - Joyson, established in 2004, is a leading global provider of smart automotive technology solutions, focusing on the research, manufacturing, and sales of automotive components, particularly in automotive electronics and safety [5]. - As of October 17, 2025, Joyson's total market capitalization exceeds 42.3 billion RMB [2]. Business Operations - Joyson is the second-largest provider of automotive passive safety products in China and globally, ranking 41st in the global automotive parts industry as of 2024 [6]. - The company has established a highly globalized platform with over 25 R&D centers and more than 60 production bases worldwide, serving over 100 global automotive brands [6]. Product Solutions - Joyson offers two main types of solutions: automotive safety solutions and automotive electronic solutions, covering key automotive domains such as cockpit, intelligent driving, connectivity, power, and body [7]. - In automotive safety solutions, Joyson is a leading supplier of airbags, steering wheels, and seat belts, with market shares of 35.9%, 22.1%, and 19.0% respectively as of 2024 [7]. - The company has also made significant advancements in automotive electronic solutions, including smart cockpit systems and energy management systems, and is recognized for its early mass production of 800V high-voltage platform products [8]. Financial Performance - Joyson's revenue for the years 2022, 2023, 2024, and the first four months of 2025 were 49.79 billion RMB, 55.73 billion RMB, 55.86 billion RMB, and 19.71 billion RMB respectively, with corresponding net profits of 233 million RMB, 1.24 billion RMB, 1.33 billion RMB, and 490 million RMB [12][13]. Shareholder Structure - As of January 7, 2025, the pre-IPO shareholder structure shows that Mr. Wang Jianfeng holds 39.85% of the shares directly and through Joyson Group [10].

Core Viewpoint - Ningbo Joyson Electronic Corp. (Joyson) is preparing for an IPO on the Hong Kong Stock Exchange, having recently disclosed its prospectus after receiving approval from the China Securities Regulatory Commission for overseas listing [2]. Business Overview - Joyson, established in 2004, is a leading global provider of smart automotive technology solutions, focusing on the research, manufacturing, and sales of automotive components, particularly in automotive electronics and safety [4]. - According to Frost & Sullivan, Joyson ranks as the second-largest provider of automotive passive safety products in China and globally, and it is positioned 41st in the global automotive parts industry as of 2024 [4]. - The company has established a highly globalized platform with over 25 R&D centers and more than 60 production bases worldwide, serving over 100 global automotive brands [4]. Product Solutions - Joyson offers two main categories of solutions: automotive safety solutions and automotive electronic solutions, covering key automotive domains such as cockpit, intelligent driving, connectivity, power, and body [5]. - The company is recognized as one of the largest suppliers of airbags, smart steering wheels, and seat belts globally, with market shares of 35.9%, 22.1%, and 19.0% respectively [7]. Financial Performance - Joyson's revenue for the years 2022, 2023, 2024, and the first four months of 2025 were RMB 49.79 billion, RMB 55.73 billion, RMB 55.86 billion, and RMB 19.71 billion respectively, with corresponding net profits of RMB 2.33 billion, RMB 12.40 billion, RMB 13.26 billion, and RMB 490 million [15]. - The company has shown consistent growth in revenue, with a notable increase in net profit from 2022 to 2023 [15]. Shareholder Structure - As of January 7, 2025, the pre-IPO shareholder structure indicates that Mr. Wang Jianfeng holds 39.85% of the shares directly and through Joyson Group [8]. Management Team - The board of directors consists of 10 members, including 4 executive directors, 2 non-executive directors, and 4 independent non-executive directors, ensuring a diverse governance structure [11][12].

Core Viewpoint - Junsheng Electronics has passed the listing hearing of the Hong Kong Stock Exchange, aiming to issue up to 283 million overseas listed ordinary shares, potentially becoming a dual-listed "automotive + robotics Tier 1" leader in both A-share and H-share markets [1] Group 1: Company Overview - Junsheng Electronics is positioned as a global provider of intelligent automotive technology solutions, focusing on advanced products and solutions in the automotive parts industry, including automotive electronics and safety solutions [1] - The company has established over 25 R&D centers and more than 60 production bases globally, with overseas sales accounting for 74.7% of total revenue in 2024 [1] - Junsheng Electronics serves over 100 global automotive brands, including the top ten automakers in China and worldwide, as of April 30, 2025 [1] Group 2: Robotics Sector Development - The company has completed the setup of its robotic assembly solutions this year, launching various products such as robotic domain controllers, AI head assemblies, energy management solutions, and sensor kits [2] - Junsheng Electronics has formed partnerships with well-known domestic and international robotics clients, with products already delivered or in bulk supply [2] - The company is leveraging its automotive industry technology transfer advantages to become a significant supplier of robotic components and assemblies [2]

Group 1 - The Hong Kong IPO market is experiencing a surge of applications from A-share companies, indicating a trend of cross-border listings [1][2] - Multiple A-share companies, including Three Squirrels, Kexing Pharmaceutical, and Junsheng Electronics, have disclosed their latest progress on H-share listings on the Hong Kong Stock Exchange, covering key sectors such as snacks, biopharmaceuticals, and automotive technology [2][3] Group 2 - Three Squirrels plans to issue up to 81.55 million shares for its H-share listing, positioning itself as the largest Chinese snack company based on projected 2024 sales, with the fastest growth rate among the top five companies in the sector from 2022 to 2024 [3] - Junsheng Electronics aims to issue up to 284 million shares, recognized as the second-largest provider of intelligent cockpit domain control systems in China and the fourth globally, according to Frost & Sullivan [3] Group 3 - Ruiming Technology has submitted its listing application to the Hong Kong Stock Exchange, focusing on AI solutions for commercial vehicles, leveraging over 20 years of industry experience [4] - Other companies like Kexing Pharmaceutical and Kote Power are also planning H-share listings to enhance their international presence and competitiveness [4] Group 4 - The Hong Kong IPO market has seen significant activity this year, with notable new listings such as Zijin Gold International, which raised approximately HKD 24.98 billion, making it the second-largest IPO in Hong Kong this year [7] - A total of 68 new stocks have been listed in Hong Kong this year, with over 70% recording gains on their first trading day, indicating strong market performance [8]

Group 1 - The report emphasizes the importance of the "congestion degree" indicator, which reflects the proportion of trading volume in a sector relative to the overall market, indicating whether a sector is popular or overheated [3][21][22] - It notes that in the long term, sectors in A-shares that experience "acceleration followed by volume" are likely to underperform in the following month, with exceptions observed during the 2020-2021 core asset era [3][22] - The report suggests that the effectiveness of volume-price logic is steadily increasing post-2023, making volume and technical indicators more significant [3][22] Group 2 - The medical device sector showed a robust growth in May, with a total bid amount of 13.43 billion yuan, representing a 69% year-on-year increase, and a total of 71.45 billion yuan for the first five months, up 72% year-on-year [5] - Domestic brands like Mindray and United Imaging have shown significant growth in bid amounts, with Mindray's total bid amount in May reaching 820 million yuan, a 56% increase year-on-year [5] - Import brands also saw rapid growth, with Philips and Siemens reporting year-on-year increases of 62% and 112% respectively in May [5] Group 3 - The report highlights the strong investment opportunities in the western infrastructure sector, with solid growth in fixed asset investment since 2024, particularly in regions like Inner Mongolia, Xinjiang, and Tibet [10] - It identifies key areas and major projects for investment, such as Sichuan-Chongqing, Tibet, and Xinjiang, which are expected to drive demand for infrastructure construction [10] - The report indicates that the central government's continued financial support and strategic planning will likely sustain the high level of infrastructure investment in the western regions [10] Group 4 - The report on Huahong Semiconductor indicates a positive outlook due to a new price increase cycle, with the company expected to leverage its strong pricing power to enhance profitability [29][30] - The new factory (9th plant) is projected to contribute significantly to revenue, with an estimated future revenue space of 1.277 billion USD if operating at near full capacity [30] - The acquisition of Huali Micro is expected to enhance Huahong's competitive edge, with projections for revenue growth reaching 17.2 billion yuan by 2025 [31]