Company Coverage
Ningbo Joyson Electronic Corporation (600699 CH): 2Q26: Results Miss On Top-Line, Revenue To Resume Growth In 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb18.98
Rmb25.00
31.7%
Rmb43.00
Analyst
Highlights
- 2Q26 net profit fell 8.3% yoy to Rmb337m and adjusted net profit dropped 24.1% to Rmb293m, missing our estimates on revenue and margins.
- Order intakes grew 43.9% yoy to Rmb44.9b in 1H26, supporting a return to growth in 2H26.
- Looking ahead, growth will come from Chinese OEMs going overseas, ADAS ramps and robotics.
- We cut our 2026-28 net profit forecasts by 14%/16%/17% on lower revenue and gross margin. Maintain BUY and cut our target price to Rmb25.00.
Analysis
2Q26 results missed our estimates on both top-line and margins, with reported net profit falling 8.3% yoy to Rmb337m and adjusted net profit plummeting 24.1% yoy to Rmb293m. This brings 1H26 reported net profit and adjusted net profit to Rmb739m (+4.4% yoy) and Rmb655m (-7.1% yoy) respectively, representing 41% and 37% of our 2026 estimates.
- Revenue dragged by market downturn. Revenue dropped 9.5% yoy to Rmb14.28b in 2Q26, and by 7.4% yoy to Rmb28.09b (43% of our full-year estimate), dragged by the sluggish auto markets in China and North America. China revenue and overseas revenue fell 13.9%/5.3% yoy to Rmb6.59b/Rmb21.36b respectively in 1H26.
- Gross margin squeezed by cost hikes. Gross margin edged up 0.1ppt qoq to 17.8%, but still down 0.6ppt yoy and below our full-year assumption of 18.3%, due to the price hikes of chips, electronic components like PCBs, and energy costs. China gross margin tumbled 2.69ppt yoy to 16.65% in 1H26, while overseas gross margin edged up 0.34ppt yoy to 18.15%.
Highlights
- 2Q26 net profit fell 8.3% yoy to Rmb337m and adjusted net profit dropped 24.1% to Rmb293m, missing our estimates on revenue and margins.
- Order intakes grew 43.9% yoy to Rmb44.9b in 1H26, supporting a return to growth in 2H26.
- Looking ahead, growth will come from Chinese OEMs going overseas, ADAS ramps and robotics.
- We cut our 2026-28 net profit forecasts by 14%/16%/17% on lower revenue and gross margin. Maintain BUY and cut our target price to Rmb25.00.
Analysis
2Q26 results missed our estimates on both top-line and margins, with reported net profit falling 8.3% yoy to Rmb337m and adjusted net profit plummeting 24.1% yoy to Rmb293m. This brings 1H26 reported net profit and adjusted net profit to Rmb739m (+4.4% yoy) and Rmb655m (-7.1% yoy) respectively, representing 41% and 37% of our 2026 estimates.
- Revenue dragged by market downturn. Revenue dropped 9.5% yoy to Rmb14.28b in 2Q26, and by 7.4% yoy to Rmb28.09b (43% of our full-year estimate), dragged by the sluggish auto markets in China and North America. China revenue and overseas revenue fell 13.9%/5.3% yoy to Rmb6.59b/Rmb21.36b respectively in 1H26.
- Gross margin squeezed by cost hikes. Gross margin edged up 0.1ppt qoq to 17.8%, but still down 0.6ppt yoy and below our full-year assumption of 18.3%, due to the price hikes of chips, electronic components like PCBs, and energy costs. China gross margin tumbled 2.69ppt yoy to 16.65% in 1H26, while overseas gross margin edged up 0.34ppt yoy to 18.15%.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb18.98
Rmb25.00
31.7%
Rmb43.00
Analyst
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