Orient Securities Keeps Buy on Rongtai, Cites Robot Business Expansion

Orient Securities said in a research report that Rongtai Co. is expanding its new energy and overseas operations while advancing a robot business layout. The brokerage maintained its “Buy” rating on the auto parts maker. In the first half, Rongtai’s net profit attributable to shareholders was 88 million yuan, down 10.1% year on year. In the second quarter alone, net profit reached 43 million yuan, down 12.8% year on year and 3.4% quarter on quarter. Despite the earnings decline, the report points to the company’s strategic push into robotics as a potential long-term growth driver. Orient Securities’ reiteration of the Buy rating signals continued confidence in Rongtai’s transition toward new energy, overseas expansion, and intelligent manufacturing. The market will watch whether these investments can offset near-term profit pressure.