Orient Securities Keeps Buy on Xinquan as Robotics Layout Advances

Orient Securities said in a research note that Xinquan Shares, a Chinese auto-parts supplier of interior and exterior components, achieved counter-cyclical growth in profit and gross margin while continuing to advance its robotics layout. The company reported attributable net profit of RMB638 million for the first three quarters, up 2.5% year on year. Third-quarter net profit reached RMB224 million, up 11.7% year on year and 6.3% quarter on quarter. The brokerage maintained its “Buy” rating on the stock, pointing to resilient earnings and the robotics initiative as factors that could support valuation amid margin pressure in the auto-parts sector. The report highlights the company’s ability to improve profitability despite challenging industry conditions, though it did not disclose specific robotics targets or timelines.