Citi: JLMAG Issues Strong 1H26 Net Profit Growth Forecast, Reiterates Buy Rating

Citi released a research report stating that JLMAG (06680.HK) +2.110 (+12.688%) Short selling $3.98M; Ratio 2.276% delivered a positive profit forecast for 1H26, with net profit expected to reach RMB400 million to RMB460 million, representing YoY growth of 31% to 51%. Net profit excluding non-recurring items was even stronger, expected at RMB368 million to RMB428 million, up 57% to 83% YoY, mainly driven by around 30% YoY revenue growth and continued optimization of the product mix.

The broker noted that the results demonstrated solid operating momentum during the period, especially considering the company recognized approximately RMB121 million in additional expenses related to its A/H share incentive scheme and issuance of H-share convertible bonds. By segment, revenue from new energy vehicles and auto components increased around 30% YoY, while revenue from robotics and industrial servo motors surged around 90% YoY. Among them, embodied AI robot motor rotor products have entered the small-scale delivery stage, validating that the robotics business is transitioning from market expectations into actual order contributions.

Citi maintained its investment thesis on JLMAG and expects order volumes to recover in 2H26 alongside the arrival of the peak season. The launch of Tesla, Inc. (TSLA.US) Optimus V3 is also expected to boost market attention on its robotics business. Citi maintained its HK share TP for JLMAG (06680.HK) +2.110 (+12.688%) Short selling $3.98M; Ratio 2.276% at HKD38.2 and reiterated the Buy rating. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-02 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)