JOYSON ELEC (00699) is a China-based global automotive technology supplier specializing in vehicle safety, automotive electronics, and robotics components. The company is transitioning from the "Takata integration shadow" to a new phase characterized by "global safety cash cow + smart vehicle Tier1 + robotics as a second growth driver."
As one of the world’s top three automotive safety suppliers, JOYSON ELEC has established itself as a key provider of comprehensive passive safety systems for global automakers through acquisitions of KSS and Takata assets. With historical recall and restructuring costs gradually resolved and new energy vehicle orders ramping up, its safety business is expected to deliver mid-to-high single-digit revenue growth over the next three years, alongside steady margin expansion and stable cash flow.
In automotive electronics, JOYSON ELEC focuses on smart cockpits, connectivity, ADAS/domain control, and new energy management systems. Leveraging local responsiveness and global project experience, the company continues securing high-end vehicle projects and has made breakthroughs in critical domain control products like central computing units (CCU). New-generation cockpit domain controllers and 800V high-voltage platforms have secured orders or pilot projects, signaling an upcoming product cycle.
The company is also expanding into robotics, developing integrated "robot domain controllers + head assemblies" by applying its automotive safety and electronics expertise. Partnerships with leading robotics players position JOYSON ELEC advantageously in the "embodied AI + industrial automation" trend. While still in early investment stages, robotics could contribute meaningful revenue within 3–5 years, adding valuation upside.
Financial projections estimate 2025–2027 revenue at RMB62.6/67.0/71.9 billion (+12%/7%/7% YoY) and net profit at RMB1.6/1.8/2.0 billion (+67%/12%/11% YoY). Based on peer valuations and robotics potential, a 2026 average PE of 18x implies a target market cap of HK$35.6 billion and a HK$23 share price.
**Key Risks:** - **Global operations and FX exposure:** Geopolitical tensions, trade policies, and currency fluctuations (EUR/USD vs. RMB) may impact costs and supply chains. - **M&A integration and impairment:** Past acquisitions carry significant goodwill; underperformance could trigger one-time charges. - **Robotics uncertainties:** Early-stage R&D and commercialization risks may strain profitability. - **Margin pressures:** Rising raw material costs (steel, electronics) and OEM pricing demands could hinder margin recovery.
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