Northeast Securities has issued a research report assigning an "Overweight" rating to JOYSON ELEC (00699), noting robust revenue growth in the first three quarters of 2025 and a continued recovery in profitability, with significant gross margin improvement. The company experienced rapid growth in new orders for its automotive safety and electronics businesses, while its intelligent driving segment recently secured a major project nomination. Concurrently, the company is actively expanding its robotics product line and has entered a strategic partnership with Sinian Zhiji to jointly explore commercial applications for L4 autonomous driving and embodied intelligence technologies. The main points from Northeast Securities are as follows:
Revenue demonstrated steady growth, and profitability continued to recover. On the revenue side, the company achieved revenue of 45.844 billion yuan in the first three quarters, a year-on-year increase of 11.45%. Specifically, Q3 2025 revenue reached 15.497 billion yuan, up 10.25% year-on-year. On the profit side, net profit attributable to shareholders for the first three quarters was 1.120 billion yuan, an increase of 18.98% year-on-year. In Q3 2025 alone, net profit attributable to shareholders was 413 million yuan, surging 35.40% compared to the same period last year. This rapid profit growth was primarily driven by a significant expansion in gross margin. As cost-saving measures on materials, enhanced operational efficiency, and optimized capacity transfers gradually took effect across global business regions, the company's gross margin for the first three quarters reached 18.3%, up 2.7 percentage points year-on-year. The Q3 2025 gross margin stood at 18.6%, an increase of 2.9 percentage points. By product segment, the gross margin for the automotive safety business in Q1-Q3 2025 was approximately 16.4%, up 2.4 ppts year-on-year, while the automotive electronics business gross margin was about 20.8%, increasing by 1.6 ppts.
New order intake grew rapidly, and the intelligent driving business achieved a major breakthrough. The company continued to strengthen its efforts in securing new orders, with the total lifetime value of cumulative new orders in the first three quarters reaching approximately 71.4 billion yuan. This comprised about 39.6 billion yuan from the automotive safety business and 31.8 billion yuan from the automotive electronics business. The intelligent driving business emerged as the brightest spot in order growth. Since Q3 2025, the company has successively secured two major intelligent vehicle project nominations. The products involved cover intelligent assisted driving domain controllers, multi-screen intelligent cockpit systems, and integrated solutions for intelligent driving and connectivity. The estimated total lifetime value of these orders is 15 billion yuan and 5 billion yuan, respectively, with mass production scheduled to commence from the end of 2027 and 2026.
The robotics product portfolio is well-developed, with commercialization prospects on the horizon. Positioning itself as a "Tier 1 supplier for both Automotive and Robotics," the company is actively building a second growth curve. Since establishing its wholly-owned subsidiary, Joyson Embodied Intelligent Robotics, in April 2025, it has formed a comprehensive product matrix including AI head assemblies, torso and chassis assemblies, energy management solutions, and sensor suites. Core clients include leading overseas robotics companies, Zhiyuan Robot, and Yinhe Tongyong, among others.
The company has formed a strategic partnership with Sinian Zhiji to jointly expand commercial applications for L4 autonomous driving and embodied intelligence technologies. Previously, a smart port digital management platform co-developed by the two parties, based on "V2X + L4 autonomous driving + intelligent cloud dispatching," was deployed and has been operating stably at the Ningbo Port.
Risk warnings include potential underperformance in humanoid robot mass production, lower-than-expected passenger vehicle sales, and failure to meet performance forecasts and valuation expectations.
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