Huaxin Securities: The automotive and humanoid Siasun Robot & Automation industry chain are highly related. Johnson Electric Holdings (00179) may enter a new track.

Huaxin Securities released a research report stating that according to the data disclosed in JOHNSON ELEC H's (00179) interim report for the first half of the 24th fiscal year, the revenue in the first half of the 24th fiscal year was 18.5 billion US dollars, a year-on-year decrease of -4.3%; non-GAAP net profit was 130 million US dollars, a year-on-year increase of +10.8%, indicating an improvement in profitability. Recently, the humanoid robot industry has been rapidly expanding, and the company has also started publicly recruiting a business development manager for humanoid Siasun Robot & Automation, preparing to enter the humanoid Siasun Robot & Automation industry. The current humanoid Siasun Robot & Automation industry chain has entered a stage of flourishing, with the number of humanoid Siasun Robot & Automation complete machine manufacturers and component companies rapidly increasing. The automotive industry chain and the humanoid Siasun Robot & Automation industry chain have a high degree of correlation, and it is expected that automotive component companies with strong overall strength entering the humanoid Siasun Robot & Automation field can unlock growth potentials. Huaxin Securities' main points are as follows: Slight decrease in revenue, significant improvement in profitability; steady progress in performance, with automotive products being the main revenue contributor According to JOHNSON ELEC H's disclosed data, the company's revenue in the first half of the 24th fiscal year was 18.5 billion US dollars, a year-on-year decrease of -4.3%, mainly due to lower revenue from automotive products; gross margin was 23.6%, a year-on-year increase of +1.4 percentage points, with the improvement in gross margin mainly attributed to lower raw material costs and gains from currency hedging contracts; non-GAAP net profit was 130 million US dollars, a year-on-year increase of +10.8%. In terms of structure, in the first half of the 24th fiscal year, the revenue composition of automotive products and industrial products was 84%/16%, with automotive products revenue decreasing by -3% year-on-year, mainly due to the global decline in automotive production; industrial products revenue declined by -9% year-on-year, mainly due to weak end-consumer demand outside the Asia-Pacific region. Global leader in automotive micro-motor industry with deep technological expertise With over sixty years of experience in micro-motor development, the company ranks second globally in the automotive micro-motor market share. JOHNSON ELEC H's automotive products can be divided into three main parts: thermal management products, including heat dissipation fan modules, electronic water pumps, cooling valves, etc.; automotive braking and steering products, including electric power steering, ABS, wire-controlled steering, wire-controlled braking, etc.; and vehicle motors, including sunroof motors, seat adjustment motors, window regulator motors, and electric tailgate motors. Since its establishment in 1959, the company has been producing micro motors, and now it holds a leading position in the design, development, and manufacturing of micro motors and integrated motor systems globally. According to QYResearch data, in 2021, Dechang Motors' market share in the global automotive micro-motor market was 14.1%, ranking second, only behind Mabuchi Motors. Expected entry into the humanoid Siasun Robot & Automation field may open up a second growth curve The humanoid Siasun Robot & Automation industry is rapidly expanding, with the total number of domestic and foreign general humanoid Siasun Robot & Automation complete machine companies reaching about 150 by 2024, with over 80 of them being domestic companies, as revealed by the general manager of the co-built national and local humanoid Siasun Robot & Automation innovation center, Xu Bin, at the annual meeting. With the emergence of artificial intelligence companies like DeepSeek driving the development of general Siasun Robot & Automation large models, the humanoid Siasun Robot & Automation industry chain has entered a stage of "blossoming and competing," with humanoid Siasun Robot & Automation entering industrial scenarios and becoming a high-likelihood trend both domestically and internationally, and the number of humanoid Siasun Robot & Automation component companies is also rapidly increasing. Preparing to enter the humanoid Siasun Robot & Automation industry, the company's overall technological strength is promising JOHNSON ELEC H is currently publicly recruiting a business development manager for humanoid Siasun Robot & Automation, requiring them to engage in in-depth discussions with cross-functional teams (engineering, project, and operations teams) on strategic plans' deliverable results and growth expectations to ensure profitability growth through sustainable business models. The company has extensive manufacturing experience in brushless DC motors and has metal processing capabilities for gears and oil pumps. With strong comprehensive technological strength, the company is expected to expand into the humanoid Siasun Robot & Automation component manufacturing field, tapping into a second growth space. Recommended targets to watch JOHNSON ELEC H (00179), Ningbo Shuanglin Auto Parts (300100.SZ), KAIT (301270.SZ). Risk warnings Lower-than-expected downstream market demand, rising raw material prices, geopolitical risks.