Ningbo Joyson_ Expanding footprint into humanoid robots; takeaways from management call. Sun Feb 09 2025

Summary of Ningbo Joyson Management Call Company and Industry Overview - Company: Ningbo Joyson (600699.SS) - Industry: Humanoid Robots and Automotive Safety Components Key Points from the Management Call 1. Stock Performance: Joyson's share price increased by over 25% in the past month, driven by developments in the humanoid robot sector, outperforming other companies in the same field such as Sanhua (+55%), Tuopu (+53%), and Leader Drive (+60%) [2][7] 2. Technological Focus: Joyson is actively developing essential components for humanoid robots, including sensors (IMU sensors, six-axis force sensors, LIDAR, RGBD cameras, olfactory sensors), power management systems (ACDC, DCDC converters, wireless charging), and shell parts [5] 3. R&D Prioritization: The company is prioritizing research and development at this stage, with no major capital expenditure plans currently in place [5] 4. Collaboration: Joyson is collaborating with a domestic AI chip manufacturer and plans to expand into the domain controllers business for robots in the future [5] 5. Product Launch: A subsidiary, Ningbo PIA, launched the "Jarvis2.0" humanoid robot product in November 2024 [5] 6. Market Outlook: The management expressed a promising adoption roadmap for the humanoid robot industry, with industrial applications expected in the next three years and broader public service and home scenarios in 5-10 years [5][10] 7. Technical Challenges: Key challenges identified include ensuring stable bipedal walking, lightweight design, and the integration of large AI models as the robot's 'brain' [10] 8. IPO Plans: Joyson has initiated a Hong Kong IPO plan in December 2024, aiming to issue a maximum of 15% of shares post-IPO to support its globalization strategy [5] 9. Fundamental Concerns: Despite the positive sentiment around humanoid robots, there are concerns regarding Joyson's fundamentals due to weak global auto demand [2][7] Financial Projections and Valuation - Price Target: The price target for Joyson is set at Rmb16.50, based on a 15x 2025E P/E ratio, aligning with the historical average for China auto parts listed companies [8] - Risks: Potential risks to the rating and price target include fluctuations in global automobile demand and variations in material, wages, logistics, and operating expenses [9] Additional Insights - Market Position: Joyson is recognized as the world's second-largest automotive safety component supplier and a leading smart vehicle content supplier [7] - Investor Sentiment: The company's recent expansion into humanoid robots is expected to influence stock sentiment positively, despite underlying concerns about its automotive business [2][7] This summary encapsulates the critical insights from the management call regarding Ningbo Joyson's strategic direction, market outlook, and financial considerations in the context of the humanoid robot industry.