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
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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