Ningbo Joyson Electronic Q3 profit drops on weak vehicle sales, higher raw-material costs

Overview

• China automotive electronics supplier's unaudited Q3 net income fell 47% yr/yr

• Operating income for Q3 declined nearly 11% yr/yr

• Company cites weak vehicle sales, higher raw material costs and FX fluctuations for declines

Outlook

• Company says global light vehicle sales declined 4.3% year-on-year in first three quarters

• Company notes domestic passenger vehicle sales in China fell 24.9% year-on-year in 2026

• Company expects higher prices for electronic components and raw materials to impact costs

Result Drivers

• WEAK VEHICLE SALES - Co attributed declines to weak global and China vehicle sales

• HIGHER RAW MATERIAL COSTS - Co said increased prices for memory chips and other raw materials raised costs

• FX FLUCTUATIONS - Co cited exchange rate fluctuations as impacting translated revenue

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Ningbo Joyson Electronic Corp. is CNY28.50, about 32.4% above its October 27 closing price of CNY21.52

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)