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CHINA LONGYUAN(916)
Analysis¡G
China Longyuan Power is vigorously promoting the ¡§New Energy +¡¨ model to enhance its resource acquisition capabilities through large-scale development. In the first half of 2025, the Group recorded a net increase of 2,053.54 MW in controlled new-energy installed capacity. This comprised a net addition of 986.95 MW in wind-power controlled capacity, 1,096.59 MW in solar-power controlled capacity, and a reduction of 30.00 MW in biomass-power controlled capacity. As at 30 June 2025, the Group¡¦s total controlled installed capacity stood at 43,196.74 MW, of which wind power accounted for 31,395.72 MW, solar power 11,794.92 MW, and other renewable energy 6.10 MW. In the first half of 2025, the Group generated a cumulative 39,652,477 MWh of electricity. Wind-power generation totaled 33,502,617 MWh, representing a year-on-year increase of 6.07%. Solar-power generation reached 6,146,915 MWh, a substantial rise of 71.37%.
In response to national major development strategies, the Group is fully advancing ¡§desert, Gobi and wilderness¡¨ wind-solar mega-base projects and strengthening offshore wind-power expansion. It is prioritiZing competitive allocation quotas in the central and southern regions with assured consumption and relatively attractive electricity prices. The Group is implementing ¡§replace small with large¡¨ projects, integrating rural revitalization to secure contiguous development, promoting shared energy-storage projects tailored to local conditions, and orderly deploying green-electricity-to-hydrogen (ammonia) projects aligned with downstream markets. It is also accelerating the layout of far-offshore wind projects. In the first half of 2025, the Group signed new development agreements for 1.24 GW (wind power 1.04 GW, energy storage 0.2 GW), all located in high-quality resource areas. It also obtained a cumulative 4.75 GW of development quotas (wind power 2.98 GW, solar power 1.77 GW).
Adhering to the philosophy of green development, the Group maintains a centralized and unified management model for green certificates, leverages its scale advantage to enhance green-electricity and green-certificate marketing capabilities, and actively expands overseas green-certificate sales. In the first half of 2025, it completed 4.14 billion kWh of green-electricity trading, up 41.67% year-on-year, and traded 4.232 million green certificates, an increase of 81.46%. In addition, the Group is actively implementing the Belt and Road Initiative. It focuses on ¡§five-good¡¨ countries ¡X those with strong China relations, large market potential, favorable economic prospects, high national creditworthiness, and low investment risk ¡X to advance international green-energy cooperation. This includes deepening presence in southern Africa, exploring markets in Central Asia and the Middle East, and studying opportunities in Latin America. In the first half of 2025, the Group secured approval for six overseas new-energy projects totaling 1.44 GW.(I do not hold the above stock.)
Strategy¡G
Buy-in Price: $7.45, Target Price: $8.25, Cut Loss Price: $7.05
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DZUG(1635)
Analysis¡G
Impacted by the U.S. and Israeli attacks on Iran, European natural gas prices surged by 50% on March 2, marking the largest increase since March 2022. Qatar Energy announced that it has decided to suspend liquefied natural gas (LNG) production after two of its energy facilities were attacked by drones from Iran on the same day. Qatar, with the world's third-largest natural gas reserves, is one of the most important natural gas producers globally. In 2025, Qatar exported 82.2 million metric tons of LNG. Recently, DZUG issued a profit alert, forecasting a net profit of between RMB 350 million and RMB 500 million for 2025, representing a year-on-year increase of 50.1% to 114.5%. During the year, the company's main businesses, including public utilities, maintained stable development. The increase in income from financial assets held through associates contributed to a significant rise in annual performance. With the positive performance outlook and the surge in natural gas prices, we believe the company's stock price still has room for growth in the short term.
Strategy¡G
Buy-in Price: $5.00, Target Price: $6.00, Cut Loss Price: $4.51
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JOYSON Electronics (600699 CH) ¡V Expanding into Robotics to Build a Second Growth Curve
JOYSON Electronics (600699 CH) ¡V Expanding into Robotics to Build a Second Growth CurveChina | Automobile Parts | Company Updates
3 March, 2026 ZhangJing
zhangjing@phillip.com.cn
(+ 86 021-6351 2939)Analyst BUY (Maintain)
CMP CNY 27.37 (Closing price as at 2 March)
TARGET CNY 33.4 (+22%) Company ProfileAs a leading global supplier in automotive electronics and automotive safety, Joyson Electronics provides one-stop solutions in key technology areas of intelligent electric vehicles to global OEMs. The Company's business is divided into two major segments: automotive electronics and automotive safety. The automotive electronics segment mainly includes intelligent cockpit, intelligent connectivity, intelligent driving and new energy management, while the automotive safety segment mainly includes products related to seatbelts, airbags, intelligent steering wheels and integrated safety solutions. In 2025, the Company strategically extended into the upstream and downstream of the robotics industry chain, newly positioning itself as "Automotive + Robotics Tier1" and actively building a second growth curve. Investment SummaryThe Company Released Its 2025 Earnings Forecast: Core Profit up 17%It is expected that in 2025 the Company will realise net profit attributable to owners of the parent company of approximately RMB1.35 billion (RMB, the same below), up 40.56% yoy; net profit attributable to the parent company excluding non-recurring items is expected to be approximately RMB1.5 billion, up approximately 17.02% yoy. The difference between the two is mainly due to non-recurring losses of approximately RMB160 million arising from the transfer of the weighing apparatus business by the Company's listed subsidiary Guangdong Xiangshan Weighing Apparatus Group Co., Ltd. (002870.CH), as well as the optimisation and disposal of certain overseas factories. The Company attributes the growth in results to the gradual effectiveness of various profitability improvement and business integration measures implemented across global business regions in 2025, as well as the continued recovery in profitability of overseas operations. Profitability of Core Businesses Continued to ImproveThrough optimising and integrating its global operations, particularly achieving notable results in reducing global raw material costs and improving operational efficiency, the Company has significantly enhanced its operating performance and profitability. The Company's overall gross margin increased from 11.1% in 2022 to 14.5% in 2023, further rising to 16.2% in 2024, and continued to increase to 18.31% as of the third quarter of 2025. From a regional perspective, overseas markets have focused on continuously reducing raw material costs by introducing Chinese suppliers and optimising procurement prices from existing suppliers. Meanwhile, the Company's global operational improvement team has continued to optimise and enhance OEE (Overall Equipment Effectiveness) at overseas factories, while adjusting and relocating production capacity from high-cost countries/regions to low-cost countries/regions, thereby steadily driving gross margin improvement. In particular, cost improvement measures in the European region were implemented earlier and achieved significant gross margin enhancement during the reporting period. Cost improvement measures in the Americas were implemented relatively later, and gross margin is expected to improve correspondingly in the future, with profitability continuing to strengthen. Sufficient Orders on Hand with Sustainable Growth Potential in Core BusinessesIn the third quarter of 2025, the Company secured new orders with a total full lifecycle amount of approximately RMB40.2 billion. In the first three quarters, the Company's cumulative global newly secured orders reached approximately RMB71.4 billion in total full lifecycle amount, of which approximately RMB39.6 billion was from the automotive safety segment and approximately RMB31.8 billion was from the automotive electronics segment. According to Frost & Sullivan, in 2024 the Company's market share in automotive safety products ranked second globally, with global and China market shares of 22.9% and 26.1%, respectively. It is estimated that by 2029, the global and domestic market sizes of the automotive passive safety industry will grow to RMB213.6 billion and RMB49.7 billion, respectively, representing CAGR of 5.4% and 7.8%, respectively, from 2025. It is further expected that by 2029, the global and China automotive electronics market sizes will reach RMB3,330.3 billion and RMB1,892.6 billion, respectively, representing CAGR of 5.8% and 9.4%, respectively, from 2025. In H1 2025, the automotive safety and automotive electronics segments accounted for 62.53% and 27.53% of revenue, respectively. As the Company firmly drives development through technological innovation in automotive electronics, maintaining intensive R&D investment in intelligent cockpit, intelligent driving, intelligent connectivity, vehicle-road-cloud coordination and high-voltage fast charging for new energy vehicles, it ensures sustained leadership in key technology areas and possesses long-term growth potential. Expanding into Robotics to Build a Second Growth CurveAccording to Frost & Sullivan, the humanoid robot market size is expected to surge from USD2.3 billion in 2025 to USD12.9 billion in 2029, representing a CAGR of 54.4%. The Company has established strategic partnerships with several leading domestic and international robotics companies and has successfully launched a series of products, including AI-empowered robot head assemblies, integrated robot domain controllers and next-generation robot energy management solutions. Investment ThesisAs a leading enterprise in automotive safety and automotive intelligence, the Company possesses strong R&D capabilities. Its automotive-related businesses are expected to continue benefiting from the global trends of vehicle electrification and intelligence, while its expansion into the humanoid robotics field is poised to open up a second growth curve.
We expect Joyson's EPS for 2025-2027 to be 0.88/1.19/1.43 yuan. We revised the target price of RMB 33.4 equivalent to 37.8/28.0/23.4x E P/E 2025-2027 and assign Buy ratings. (Closing price as at 2 March) 
RiskOperating collision in Joyson's M&A
Worse-than-expected downstream demand Financials
(Closing price as at 2 March)
Source: PSR Download PDF version...
| Recommendation on 4-3-2026 | | Recommendation | BUY (Maintain) | | Price on Recommendation Date | $ 27.370 | | Suggested purchase price | N/A | | Target Price | $ 33.400 |
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