|
 
Shanghai Electric(2727)
Analysis¡G
Shanghai Electric actively seizes opportunities arising from the national energy policy to serve the construction of a new-type power system. In the nuclear power field, the Group has mastered the manufacturing and inspection (testing) technologies for key nuclear power equipment. In the first half of last year it secured contracts for 8 nuclear island main equipment units, successfully produced 9 nuclear island main equipment units and 1 conventional island equipment set, and has cumulatively completed and delivered 17 nuclear island main equipment sets, covering both the ¡§Hualong One¡¨ and CAP series reactor projects that are advancing comprehensive batch construction as well as major national engineering projects such as high-temperature gas-cooled reactors. In the coal-fired power generation field, the Group continues to push into the coal power ¡§three reforms linkage¡¨ market while maintaining the world¡¦s lowest coal consumption record for coal-fired units, thereby delivering coal savings and carbon reduction, deep peak shaving, thermoelectric decoupling and efficient heating, and continuing to play a vital role in building a clean, low-carbon, safe and efficient energy system.
In the wind power field, the Group¡¦s subsidiary Shanghai Electric Wind Power Group possesses domestically leading wind turbine design and manufacturing capabilities, has built China¡¦s largest offshore wind power sample database and delivered multiple benchmark offshore wind power projects. Through technological innovation, product diversification and industrial chain integration it has created an onshore product matrix covering 1.25¡V11 MW that can handle a wide range of complex terrains, and achieved a substantial rise in wind power equipment orders in the first half of last year. In the energy storage field, the Group is actively developing routes such as compressed-air energy storage and flow-battery energy storage, building a collaborative ecosystem across diversified storage technologies and offering multi-scenario storage solutions.
In the elevator field, the Group¡¦s subsidiary Shanghai Mitsubishi Elevator has released the LNK intelligent elevator digital solution 3.0, which iterates and upgrades both management efficiency and passenger experience around the themes of scenario empowerment and exclusive customization. In the industrial basic components field, the Group¡¦s blade business has successfully expanded from traditional coal-power steam turbines into aviation, aerospace and gas-turbine applications, upgrading from single energy blades to high-end products including various aviation blades, key core parts and hot-end components, and has become a leading manufacturer of critical core components in the ¡§two engines¡¨ sector. Its bearing business continues to grow across aerospace, high-speed rail and urban rail transit, medical devices, industrial equipment and automotive bearings. The Group¡¦s bearing production base in Waigang Town, Jiading District, Shanghai, officially commenced operations in the first half of last year. Centred on the three pillars of intelligent manufacturing, smart logistics and digital management, the base focuses on high-end areas urgently requiring domestic substitution, such as rail transit bearings, new-energy-vehicle high-speed bearings and robot reducer bearings. In the aviation assembly manufacturing line field, the Group leverages its extreme manufacturing capabilities and integrated equipment strengths to provide safe, controllable and intelligent solutions for high-end users in aircraft and aero-engine manufacturing. In the intelligent transportation field, the Group¡¦s TSTCBTC 2.0 and TSTIOM products have successfully passed the China Urban Rail Transit Association¡¦s autonomous equipment evaluation and have been added to the association¡¦s latest list of recommended autonomous equipment.(I do not hold the above stock).
Strategy¡G
Buy-in Price: $4.80, Target Price: $5.35, Cut Loss Price: $4.55
| 
HARBIN ELECTRIC(1133)
Analysis¡G
In the first three quarters of 2025, the company achieved high single-digit growth in both total operating revenue and net profit attributable to shareholders. Total operating revenue reached RMB 82.276 billion (a year-on-year increase of 7.42%), with revenue in the third quarter alone amounting to RMB 27.973 billion (a year-on-year increase of 4.66%), primarily driven by the continued impact of favorable coal power policies. Net profit attributable to shareholders stood at RMB 1.065 billion (a year-on-year increase of 8.48%), while the net profit attributable to shareholders for the single third quarter was RMB 245 million (a year-on-year increase of 12.58%), marking a growth rate significantly higher than the overall level of the first three quarters. The surge in AI computing power has driven a sharp increase in electricity demand from data centers. The International Energy Agency (IEA) forecasts that from 2025 to 2030, the world will add over 200 gigawatts of gas-fired power generation capacity, with nearly 60% concentrated in countries along the "Belt and Road." These markets have a growing demand for Chinese equipment that offers high cost performance, quick response, and strong technical adaptability, opening up vast opportunities for leading domestic companies. Gas turbines, with their advantages in stable power supply and low levelized cost of electricity, have become the preferred choice for self-built data center power sources. Tight overseas production capacity is driving orders to shift toward Chinese companies, and as a complete equipment manufacturer, Shanghai Electric is expected to continue benefiting from this trend. We believe the company has a positive development outlook. It is seizing the dual opportunities presented by the energy transition and the growing demand for AI computing power, achieving business upgrades through technological innovation and strategic transformation. Its future growth is highly certain.
Strategy¡G
Buy-in Price: $28.28, Target Price: $31.25, Cut Loss Price: $27.00
|
|
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 6-3-2026 | | Recommendation | BUY (Maintain) | | Price on Recommendation Date | $ 27.370 | | Suggested purchase price | N/A | | Target Price | $ 33.400 |
| |
|
|
|
|
| Stock Code |
H share
Price |
A share
Price |
H share
discount |
| | | |
|
Information contained herein is based on sources that Phillip Securities (Hong Kong) Limited and/or its affiliates ( the ¡§Group¡¨) believe to be accurate. The Group does not bear responsibility for any loss occasioned by reliance placed upon the contents hereof. The Group (or its employees) may have interests in relevant investment products. For details of different products¡¦ risks, please view the Risk Disclosures Statement on http://www.phillip.com.hk.
If you DO NOT wish to receive further marketing emails from us, please click HERE to opt-out.
ª©Åv©Ò¦³¡A ½¦L¥²¨s¡C
Copyright(C) 2026 Phillip Securities (HK) Ltd. All Rights Reserved.
|
