UOB Kay Hian
Date of Report: Wednesday, 27 August 2025
Joyson Electronics Delivers Robust 2Q25 Results: Innovation, Global Expansion, and Margin Gains Set Stage for Growth

Overview: Joyson Electronics’ Strong 2Q25 Performance Impresses Investors

Joyson Electronics Corp, a global leader in automotive parts and advanced vehicle technologies, reported a solid set of second-quarter 2025 results that not only met expectations but also highlighted the company’s strategic advances in intelligent driving, electrification, and robotics. Backed by product innovation and operational efficiency, Joyson’s financials underscore an optimistic outlook, with the broker maintaining a “BUY” rating and raising the target price to Rmb28.00.

Company Snapshot: Joyson Electronics at a Glance

Business: Automotive parts supplier specializing in smart driving systems, automotive safety, power management, and Internet of Vehicles (IoV) technologies.
Ticker: 600699 CH (Ningbo Joyson Electronic -A)
Market Cap: Rmb29,597 million (US$3,819 million)
Shares Outstanding: 1,409 million
Major Shareholder: Ningbo Joyson Holdings Co., Ltd. (36.73%)
2025 Net Asset Value/Share: Rmb1.77
2025 Net Cash/Share: Rmb11.74
52-Week Price Range: Rmb21.18 / Rmb13.33

2Q25 Results: Earnings and Margins on the Rise

Joyson’s 2Q25 net profit reached Rmb367 million, reflecting an 11.2% year-on-year rise and an 8% increase quarter-on-quarter. Core net profit climbed even higher at 17.9% YoY and 20.5% QoQ, signaling robust momentum. Revenue grew 14.3% YoY to Rmb15.8 billion for the quarter, driven by the consolidation of Senssun, and gross margins beat expectations due to operational improvements.

Revenue Drivers: Senssun Consolidation and Segment Performance

Joyson’s revenue exceeded expectations due largely to the consolidation of Senssun, beginning in 1Q25.
Stripping Senssun, core revenue was Rmb27.4 billion (+1.2% YoY) in 1H25.
Automotive safety segment: Rmb19.0 billion
Automotive electronics segment: Rmb8.4 billion
Overseas revenue reached Rmb22.5 billion, accounting for 75% of the total.

Margin Expansion: Efficiency and Restructuring Yield Results

Gross margin jumped 2.7ppt YoY to 18.4% in 2Q25 and 2.6ppt to 18.2% in 1H25, attributed to improved operational efficiency post-2024 restructuring.
Automotive safety segment gross margin rose 2.0ppt YoY to 15.9% in 1H25.
Automotive electronics segment gross margin increased 2.2ppt YoY to 21.5% in 1H25.
EBIT margin held steady at 6.2% in 2Q25, with a minor rise in 1H25.
SGA/revenue ratio rose 1.0ppt YoY in 2Q25 (6.4%) due to Senssun’s higher cost structure and business expansion.
R&D/revenue ratio grew 1.9ppt YoY in 2Q25 (5.7%), reflecting investments in autonomous driving and humanoid robotics, also influenced by Senssun consolidation.

Operational Highlights: Innovation, Robotics, and Global Expansion

• Intelligent Driving & Auto Electronics: Secured a Rmb1 billion project for domain controllers with a leading Chinese OEM, in collaboration with Momenta. Joyson’s expertise in cockpit-domain fusion and 5G/V2X solutions is attracting top-tier global brands, including BMW and Mercedes.
• Robotics: Leveraging its automotive hardware/software experience to supply key components and assemblies for new clients such as Agibot, Galaxy General, and a leading North American robot firm.
• EV & Global Expansion: Joyson is supporting Chinese EV brands’ international growth via localized production. Its leadership in high-voltage platforms (800V+) and battery management systems (BMS) is drawing both domestic NEV players and global OEMs.

Order Momentum and Segment Outlook

New orders in 1H25 totaled Rmb31.2 billion, with Rmb17.4 billion in auto safety and Rmb13.8 billion in auto electronics.
Over 66% of new orders were EV-related, a testament to Joyson’s electrification strategy.
July saw a sharp acceleration in order intake, with Rmb5.7 billion in auto safety orders in a single month.
Management expects strong momentum to continue into the second half of 2025.

Financial Forecasts and Key Metrics

The broker maintains its revenue and profit forecasts for 2025–2027, reflecting confidence in Joyson’s growth trajectory and operational execution.

Key Financial Ratios and Metrics

Net margin expected to rise from 1.7% (2024) to 3.2% (2027).
ROE improves from 9.4% (2024) to 13.4% (2027).
EBITDA margin is forecasted to grow from 10.7% (2024) to 12.7% (2027).
Debt to equity ratio continues to decline, suggesting improving balance sheet health.

Cash Flow and Balance Sheet Highlights

Operating cash flow grew 20% QoQ in 2Q25 and 2% YoY in 1H25.
Capex remains significant, supporting growth in automation and global capacity.
Net debt to equity improves steadily, forecasted at 79.7% by 2027.
Strong cash position, with ending cash and equivalents at Rmb5,979 million for 2024, rising to Rmb9,380 million in 2027.

Valuation and Broker Recommendation

The target price is raised to Rmb28.00, reflecting a 20x PE multiple for 2026, in line with the historical average.
The broker maintains a “BUY” rating, citing a three-year core net profit CAGR of 21% between 2024 and 2027.
Consensus net profit forecasts for 2025–2027 are Rmb1,494m, Rmb1,823m, and Rmb2,162m, respectively, with UOBKH’s estimates consistently above consensus.

Conclusion: Joyson Electronics Positioned for Sustained Growth

Joyson Electronics’ 2Q25 results reinforce its reputation as a global automotive technology powerhouse. The company’s focus on intelligent driving, electrification, robotics, and global supply chain optimization continues to bear fruit, with accelerating order flows and expanding margins. With robust financials, healthy cash flows, and visionary innovation, Joyson remains a compelling choice for investors seeking exposure to the future of mobility and automation.

About UOB Kay Hian

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