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AB&B BIO-TECH-B(2627)
Analysis¡G
AB&B Bio Tech is dedicated to the research and development, manufacturing, and commercialization of innovative vaccines as well as traditional vaccines using new technological methods. Its vaccine pipeline includes both innovative products that meet domestic demand and comply with global standards, and traditional vaccines enhanced with new technologies. The company currently has two core products ¡X the quadrivalent subunit influenza vaccine and the lyophilized human rabies vaccine (under development) ¡X plus another 11 vaccines in the pipeline, covering multiple disease areas with substantial vaccination demand.
The quadrivalent subunit influenza vaccine, being marketed under the brand name Huierkangxin, is designed to provide broad protection against two influenza A viruses (H1N1 and H3N2 subtypes) and two influenza B viruses (Yamagata and Victoria lineages). Compared with whole-virus vaccines or split-virus vaccines, subunit influenza vaccines contain only the key antigenic components of the virus and require further purification after viral disruption. This enables precise antigen targeting, delivering better safety and a lower risk of adverse reactions. As a result, subunit influenza vaccines (including the Group¡¦s quadrivalent product) are generally priced higher than whole-virus and split vaccines.
The Group¡¦s quadrivalent subunit influenza vaccine received NDA approval from the National Medical Products Administration (NMPA) in May 2023 for use in individuals aged three years and above, becoming the first and only quadrivalent subunit influenza vaccine approved in China. Using its own production facilities and sales & marketing team, the Group launched commercialization in September 2023. The new drug application for the Group¡¦s quadrivalent subunit influenza vaccine targeting children aged 6¡V35 months was approved by the NMPA in September last year, making it the first and only full-population, full-dose quadrivalent subunit influenza vaccine approved for marketing in China. In January this year, the new drug application for the Group¡¦s trivalent subunit influenza vaccine for all age groups was approved by the NMPA, positioning it as the first and only full-population, full-dose trivalent subunit influenza vaccine approved in China. This product represents a major upgrade over traditional split-virus vaccines, offering advantages such as comprehensive protection, high purity of antigenic components, and lower risk of adverse reactions.
The Group recently issued a profit alert, expecting revenue for 2025 to range from approximately RMB 446 million to RMB 493 million ¡X a year-on-year increase of about 71.8% to 89.9% ¡X and a net loss of RMB 157 million to RMB 197 million, a reduction of approximately 23.9% to 39.3% from the RMB 258 million net loss recorded in 2024. (I do not hold the above stock.)
Strategy¡G
Buy-in Price: $57.00, Target Price: $65.00, Cut Loss Price: $53.50
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WASION HOLDINGS(3393)
Analysis¡G
The Company mainly engages in the business of intelligent measurement solutions, including electric intelligent measurement, communication and fluid (communication terminals and water, gas and heat) intelligent measurement, as well as the manufacturing and sales of intelligent distribution equipment. The Company has long been at the forefront of product procurement shares related to State Grid and Southern Power Grid. For the non-grid market, the company focuses primarily on the data center industry. Driven by the global explosion of generative AI, accelerated cloud computing penetration, and the implementation of digitalization strategies, this sector is poised to become a major engine for driving the company's performance growth. In the first half of 2025, the company achieved revenue of approximately RMB 4.39 billion, a yoy increase of 17%, with net profit attributable to the parent company surging by 33% yoy to RMB 440 million. The company's competitiveness in overseas markets continues to strengthen, with rapid growth in overseas revenue, increasing by 19.2% yoy to RMB 1.24 billion in the first half of the year, accounting for 30.8% of total revenue. Recently, the Company released a positive profit alert, anticipating a comprehensive net profit of approximately 1.0 to 1.06 billion yuan in 2025, representing a yoy growth of about 42% to 50%. Additionally, the Company has been officially included in the Hang Seng Composite Index recently, which qualifies it for inclusion in the Hong Kong Stock Connect, facilitating potential valuation re-evaluation.
Strategy¡G
Buy-in Price: $29.18, Target Price: $35.00, Cut Loss Price: $26.00
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JOYSON Electronics (600699 CH) ¡V Expanding into Robotics to Build a Second Growth Curve
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 11-3-2026 | | Recommendation | BUY (Maintain) | | Price on Recommendation Date | $ 27.370 | | Suggested purchase price | N/A | | Target Price | $ 33.400 |
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