JOYSON (600699.CH): Expecting to Usher in a Tuning 2018 Year July 20, 2018

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.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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