Investment Summary

Via external acquisition and integration, Joyson has rapidly grown into a top global supplier of automotive components and parts. Its current products include: The development and manufacturing of 1) intelligent driving systems, 2) car safety systems, 3) new energy vehicle BMS, and 4) high-end automotive functional parts assembly, bringing more room for longterm sustainable development. What`s more, the company`s result is warming up from 2018Q2. We revised the target price of RMB 29.7 equivalent to 29/25x of 2018/2019`s estimated EPS, and assign Accumulate ratings. (Closing price as at 18 July 2018)

Decline Result in 2017 and 2018Q1

In 2017, Joyson reported revenues of RMB26.6 billion, up 43% yoy; net profits attributable to parent company were RMB396 million, down 13% yoy; net losses of RMB490 million were recorded in 2017Q4. The annual EPS was RMB0.42, down 36% yoy, with a dividend paid of RMB0.1 per share. In 2018Q1, the revenue was RMB7 billion, up 7% yoy; net profits attributable to parent company stood at RMB31 million, down 85% yoy; the EPS was RMB0.03.