Northeast: Ningbo Joyson Electronic Corp. (00699) given a "buy" rating, major breakthrough in smart driving business.

Northeast released a research report stating that Ningbo Joyson Electronic Corp. (00699) was given a "hold" rating. The company's revenue for the first three quarters of 2025 showed steady growth, with profitability continuing to improve and gross profit margin significantly increasing. The company experienced rapid growth in new orders for automotive safety and electronics businesses, with a recent large order for intelligent driving business. Additionally, the company is actively expanding its Siasun Robot & Automation product line and has formed a strategic partnership with Siasun Intelligent Driving to jointly explore commercial applications of L4 and personalized intelligent technology. Key points from Northeast are as follows: Steady revenue growth and continuing profitability improvement In terms of revenue, the company achieved revenue of 45.844 billion yuan in the first three quarters, an increase of 11.45% year-on-year, with revenue of 15.497 billion yuan in Q3, an increase of 10.25% year-on-year. Profits for the first three quarters reached 1.12 billion yuan, an increase of 18.98% year-on-year, with Q3 profits reaching 4.13 billion yuan, an increase of 35.40% year-on-year. The rapid growth in profits is mainly due to the significant increase in gross profit margin, with the company's gross profit margin for the first three quarters at 18.3%, an increase of 2.7 percentage points year-on-year, and 18.6% in Q3, an increase of 2.9 percentage points. By product, the gross profit margin for automotive safety business in Q1-Q3 was about 16.4%, an increase of 2.4 percentage points year-on-year, and for automotive electronics business it was about 20.8%, an increase of 1.6 percentage points. Rapid growth in new orders, breakthrough in intelligent driving business The company continues to strengthen its efforts in expanding new orders. The company's total new orders for the first three quarters amounted to approximately 71.4 billion yuan, with about 39.6 billion yuan for automotive safety business and 31.8 billion yuan for automotive electronics business. Intelligent driving business has become a major highlight in order growth, with the company winning two consecutive fixed-point automotive intelligent projects since Q3, covering products such as intelligent driving domain controllers, intelligent cabin car multi-screens, integrated intelligent driving, intelligent internet connection, with the total order amount estimated at 15 billion yuan / 5 billion yuan respectively, planned to start mass production by the end of 2027/2026. Siasun Robot & Automation product layout is improving, commercialization is promising The company has adopted a new positioning of "automotive + Siasun Robot & Automation Tier1", actively creating a second growth curve. Since the establishment of its wholly-owned subsidiary, Siasun Intelligent Robot & Automation in April 2025, it has already formed a complete product matrix including AI head assembly, chest and chassis assembly, energy management solutions, and sensor kits. The core customers include overseas Siasun Intelligent Robot & Automation leading enterprises, Zhiyuan Siasun Intelligent Robot & Automation, and Galaxy General. Strategic partnership with Siasun Intelligent Driving The company has formed a strategic partnership with Siasun Intelligent Driving to jointly expand L4 commercial applications and personalized intelligent technology. Previously, a smart port digital management platform based on "V2X+L4 intelligent driving+smart cloud scheduling" developed by both parties has been put into operation and has been running smoothly at Ningbo Zhoushan Port. Risk warning Unexpected delays in mass production of Siasun Robot & Automation; lower-than-expected passenger car sales; lower-than-expected performance forecasts and valuations.