Company Coverage
Shuanghuan Driveline (002472 CH): 3Q26: Earnings In Line, Emerging Segments To Grow
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb41.41
Rmb52.00
+25.6%
Rmb50.00
Analyst
Analyst
Highlights
- Shuanghuan’s 3Q26 results were broadly in line. Revenue grew 14% yoy and gross margin recovered 0.7ppt qoq to 26.8%; net profit was slightly below expectations, growing 3.8% yoy to Rmb333m due to a higher opex.
- Overseas order growth is accelerating, with mounting orders momentum from leading global OEMS. The penetration of coaxial reducers is also expected to accelerate at over 1-2x yoy growth in 2027 from a low base.
- Maintain BUY and raise target price slightly to Rmb52.00.
Analysis
- Revenue in line, higher operating expenses dragged earnings. Shuanghuan Driveline’s 3Q26 revenue was up 14.4% yoy and 3.9% qoq to Rmb2,559m, largely in line; gross margin was also in line, down 0.1ppt yoy and expanding 0.7ppt qoq to 26.8%. Operating profit was slightly below expectations, growing 10.5% yoy and 6.3% qoq to Rmb435m due to higher opex, and as a result reported net profit was a slight miss at Rmb333m, growing 3.8% yoy and 10.2% qoq.
- NEV gears, intelligent actuators and robotics continued to drive revenue growth. New energy vehicle (NEV) gears grew 26% yoy in 3Q26, intelligent actuators rose 31% yoy, robotics (industrial RV + harmonic) expanded around 20% yoy in 3Q26, and construction machinery gears grew 10% yoy in 3Q26. ICE-car gears continue to drag the overall growth, with revenue declining 14% yoy in 3Q26, and commercial vehicle gears also seeing a slowdown in momentum with revenue declining about 7% yoy during the quarter.
Highlights
- Shuanghuan’s 3Q26 results were broadly in line. Revenue grew 14% yoy and gross margin recovered 0.7ppt qoq to 26.8%; net profit was slightly below expectations, growing 3.8% yoy to Rmb333m due to a higher opex.
- Overseas order growth is accelerating, with mounting orders momentum from leading global OEMS. The penetration of coaxial reducers is also expected to accelerate at over 1-2x yoy growth in 2027 from a low base.
- Maintain BUY and raise target price slightly to Rmb52.00.
Analysis
- Revenue in line, higher operating expenses dragged earnings. Shuanghuan Driveline’s 3Q26 revenue was up 14.4% yoy and 3.9% qoq to Rmb2,559m, largely in line; gross margin was also in line, down 0.1ppt yoy and expanding 0.7ppt qoq to 26.8%. Operating profit was slightly below expectations, growing 10.5% yoy and 6.3% qoq to Rmb435m due to higher opex, and as a result reported net profit was a slight miss at Rmb333m, growing 3.8% yoy and 10.2% qoq.
- NEV gears, intelligent actuators and robotics continued to drive revenue growth. New energy vehicle (NEV) gears grew 26% yoy in 3Q26, intelligent actuators rose 31% yoy, robotics (industrial RV + harmonic) expanded around 20% yoy in 3Q26, and construction machinery gears grew 10% yoy in 3Q26. ICE-car gears continue to drag the overall growth, with revenue declining 14% yoy in 3Q26, and commercial vehicle gears also seeing a slowdown in momentum with revenue declining about 7% yoy during the quarter.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb41.41
Rmb52.00
+25.6%
Rmb50.00
Analyst
Analyst
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