Zhejiang Yinlun Machinery Co., Ltd. (002126)

Equity Research Report | Industry: Auto Parts/Thermal Management | Report Date: September 13, 2026 | Closing price on September 11, 2026 (Friday); information retrieval completed around mid-September 2026

This report was automatically compiled and generated by AI based on publicly available information. It is for reference only and does not constitute investment advice.

1. Executive Summary

Yinlun Machinery recorded a clear “revenue growth without profit growth” pattern in 1H2026: operating revenue was RMB 9.026 billion, up 25.93% YoY, while net profit attributable to shareholders was RMB 452 million, up only 2.50%; net profit attributable to shareholders excluding non-recurring items increased 5.33%. Profitability was affected by foreign-exchange gains and losses, a sharp increase in finance expenses, higher prices for raw materials such as aluminum, copper and stainless steel, and the relatively low gross margin of the passenger-vehicle business. Net cash flow from operating activities was negative RMB 312 million in 1Q2026. The significant lag in earnings growth behind revenue growth is currently the most decision-relevant operating change.

The company’s growth remains supported by a relatively strong business mix. In 1H2026, revenue from commercial vehicles and off-road thermal management was RMB 3.324 billion, up 37.03%, with a gross margin of 23.61%; revenue from digital and energy thermal management was RMB 978 million, up 41.30%, with a gross margin of 25.31%. Both grew faster than passenger-vehicle thermal-management revenue. Digital and energy businesses cover data-center liquid cooling, energy storage, ultra-fast charging and power stations. The company also disclosed that customer expansion and validation for stainless-steel plate heat exchangers used in liquid-cooling CDUs were progressing smoothly. Certain humanoid-robot modules had received customer nominations, with some entering small-batch production and generating revenue, although these developments are primarily based on company disclosures.

The company’s core business remains automotive thermal management. In 1H2026, passenger-vehicle thermal-management revenue was RMB 4.486 billion, accounting for 49.70% of total revenue, but its gross margin was only 12.66%. Heat-exchanger products accounted for 93.36% of revenue, indicating a relatively high degree of business concentration. Through the listing of its controlling subsidiary Langxin Electric on the Beijing Stock Exchange, construction of its Mexico production base and completion of a share buyback of approximately RMB 100 million, the company continues to strengthen capacity, overseas operations and employee incentive arrangements.

As of September 11, 2026, the company’s share price closed at RMB 38.77, approximately 37% below its 52-week high of around RMB 62.00. Total market capitalization was approximately RMB 32.831 billion, the dynamic P/E ratio was approximately 36.29x, and the P/B ratio was approximately 4.40x. The share price was below multiple moving averages, while net institutional fund outflows continued for three consecutive trading days. The technical picture was in a weak consolidation phase. However, some oscillators indicated short-term oversold conditions, and the absence of a complete same-day technical snapshot introduces a time lag; a trend reversal cannot be confirmed on this basis.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Passenger-vehicle thermal management, including new-energy vehicles: FY2025 revenue of RMB 8.386 billion, accounting for 53.49%, up 18.27% YoY, with a gross margin of 14.33%; 1H2026 revenue of RMB 4.486 billion, accounting for 49.70%, with a gross margin of 12.66%
• Commercial-vehicle and off-road thermal management: FY2025 revenue of RMB 5.176 billion, accounting for 33.02%, up 23.94% YoY, with a gross margin of 23.63%; 1H2026 revenue of RMB 3.324 billion, accounting for 36.83%, with a gross margin of 23.61%
• Digital and energy thermal management, including data-center liquid cooling, energy storage, ultra-fast charging/charging and battery swapping, power and transformer stations, and low-altitude aircraft: FY2025 revenue of RMB 1.467 billion, accounting for 9.36%, up 42.89% YoY; 1H2026 revenue of RMB 977.5 million, accounting for 10.83%, with a gross margin of 25.31%
• Other businesses: FY2025 revenue of RMB 649 million, accounting for 4.14%; 1H2026 revenue of RMB 238.3 million, accounting for 2.64%
• By product category, FY2025: heat exchangers of RMB 14.73 billion, accounting for 93.98%, with a gross margin of 18.42%; other products of RMB 861 million, accounting for 5.49%; trading of RMB 83 million, accounting for 0.53%
• By region, FY2025: China RMB 11.86 billion, accounting for 75.66%, with a gross margin of 18.32%; North America RMB 2.154 billion, accounting for 13.74%, with a gross margin of 20.30%; Europe RMB 1.109 billion, accounting for 7.08%; other regions RMB 554 million, accounting for 3.53%. In 2025, the overseas North American segment generated revenue of USD 214.4197 million and net profit of USD 9.5184 million; the European segment generated revenue of RMB 370.62 million and significantly reduced losses; the Malaysia base achieved mass-production deliveries
• “Four-curve” business narrative: the first curve is traditional automotive and off-road machinery thermal management (the core business); the second curve is new-energy-vehicle thermal management; the third curve is digital and energy thermal management; and the fourth curve is core components for embodied intelligence/humanoid robots, including rotary joint modules, linear joint modules, dexterous-hand modules and thermal-management modules

2.3 Position in the Upstream and Downstream Industrial Chain and Cost-Profit Structure

3. Financial Data and Valuation Analysis

3.1 Recent Operating Results

1H2026 revenue was RMB 9.026 billion (RMB 9,026,335,738.38), up 25.93% YoY; net profit attributable to shareholders was RMB 452 million (RMB 452,332,697.50), up 2.50% YoY; net profit attributable to shareholders excluding non-recurring items increased 5.33% YoY; basic EPS was RMB 0.54, up 1.89% YoY; R&D investment was RMB 286 million, up 3.46% YoY and accounting for approximately 3.17% of revenue. Sources: https://finance.eastmoney.com/a/202608263854859147.html ; https://finance.eastmoney.com/a/202608273855982413.html ; https://www.jiemian.com/article/15000537.html . For 1Q2026, net profit attributable to shareholders excluding non-recurring items was approximately RMB 205 million, down 1.65% YoY; basic EPS was RMB 0.26; weighted ROE was 2.83% versus 3.35% in the same period last year; net cash flow from operating activities was negative RMB 312 million, down 130.37% YoY; finance expenses were RMB 52.3177 million, up 1470.50% YoY, which the company attributed to changes in foreign-exchange gains and losses; total assets were RMB 22.732 billion and equity attributable to shareholders was RMB 7.556 billion. Source: https://wap.stockstar.com/detail/SN2026042700047914 ; Guosen Securities commentary dated 2026-04-28. For FY2025A, net profit attributable to shareholders excluding non-recurring items was RMB 898.0 million (RMB 897,963,351.64), up 31.51% YoY; basic EPS was RMB 1.15; weighted ROE was 14.12% versus 13.29% in the prior year; net cash flow from operating activities was RMB 1.405 billion, up 16.56% YoY; the proposed dividend was RMB 1.2 per 10 shares, including tax. Based on 847 million shares, the estimated total cash dividend was approximately RMB 102 million, implying a payout ratio of approximately 10.6% (calculated by the author of the research memorandum); commercial-vehicle and off-road revenue was RMB 5.176 billion, up 23.94% YoY; 4Q2025 net profit attributable to shareholders was approximately RMB 285 million, up 23% QoQ according to media estimates. For 9M2025, revenue was RMB 11.057 billion, up 20.12% YoY, and net profit attributable to shareholders was RMB 672 million, up 11.18% YoY. 2Q2026 figures are based on a securities-firm research report (Guohai Securities, 2026-08-29); implied 1H2025 revenue of approximately RMB 7.17 billion and net profit attributable to shareholders of approximately RMB 441 million are back-calculated from 1H2026 figures and YoY growth rates. Segment data for 1H2026, consistent with Eastmoney’s principal-business breakdown and media disclosures: passenger vehicles RMB 4.486 billion, accounting for 49.70%, up 17.03% YoY, with a gross margin of 12.66%; commercial vehicles and off-road RMB 3.324 billion, accounting for 36.83%, up 37.03% YoY, with a gross margin of 23.61%; digital and energy RMB 978 million, accounting for 10.83%, up 41.30% YoY, with a gross margin of 25.31%; other RMB 238 million, accounting for 2.64%. By product: heat exchangers RMB 8.427 billion, accounting for 93.36%, with a gross margin of 18.26%; trading RMB 45 million. By region: China RMB 6.588 billion, accounting for 72.99%, up 24.11% YoY; North America RMB 1.313 billion, accounting for 14.55%, up 18.52% YoY, with a gross margin of 22.99%; Europe RMB 701 million, accounting for 7.77%, up 33.34% YoY; other regions RMB 424 million, accounting for 4.70%, up 87.99% YoY. Order backlog: 161 projects were newly obtained in 1H2026, expected to add approximately RMB 4.99 billion in annual sales revenue once fully ramped up. This is based on company disclosures/media reports and has not been directly verified against an announcement; it remains subject to verification.

Key trends: 2026 saw a clear “revenue growth without profit growth” pattern: 1H revenue increased 25.93%, while net profit attributable to shareholders rose only 2.50% (1Q: +0.79%; 2Q: approximately +4%). The company and securities firms attributed this to a sharp increase in finance expenses caused by foreign-exchange gains and losses, higher prices of aluminum, copper and stainless steel, and the drag from the low-margin passenger-vehicle business, whose gross margin was 12.66%. Business mix and earnings quality: higher-margin digital and energy thermal management, at 25.31%, and commercial-vehicle and off-road thermal management, at 23.61%, grew faster than the lower-margin passenger-vehicle business. However, passenger vehicles still accounted for nearly half of revenue, keeping near-term margin pressure elevated. Source: https://stock.stockstar.com/RB2026082900002840.shtml (the title directly highlights “revenue growth without profit growth, finance expenses surging 28-fold and cash flow declining”); Guojin Securities, 2026-04-28; Huachuang Securities, 2026-05-04. Differences in segment definitions require attention: the 2025 annual-report media definition of “commercial vehicles and off-road” revenue of RMB 5.176 billion differs from Eastmoney’s 2025-12-31 principal-business breakdown, in which passenger vehicles were RMB 8.386 billion, accounting for 53.4%, with the remaining figures truncated. A precise reconciliation should be conducted using the annual report text.*

3.2 Earnings Forecasts

The research memorandum did not obtain multi-institution consensus estimates for 2026–2028 revenue, net profit attributable to shareholders or EPS. The planned source, Tonghuashun basic.10jqka.com.cn/002126/worth.html, could not be scraped. Therefore, no earnings forecast table can be provided; the data are missing or pending supplementation. Other explicitly identified gaps in the research memorandum include: (1) the target-price ranges and rating distribution of securities firms after the release of the 2026 interim report were not obtained; and (2) quantitative estimates from institutions for quarterly gross margins in 2025 and full-year gross and net margins in 2026 were not obtained. Accordingly, this memorandum cannot provide a conclusion regarding the “current consensus P/E” or “average target price.”

3.3 Valuation and Institutional Ratings

Valuation, calculated by the author based on the above disclosed data rather than directly provided by a data vendor: the share price reference was the “latest price of RMB 41.67” shown on a page disclosed on 2026-08-27 (https://finance.eastmoney.com/a/202608273855982413.html ). Based on 847 million shares, total market capitalization was estimated at approximately RMB 35.3 billion; the static P/E based on FY2025 net profit attributable to shareholders of RMB 957 million was approximately 36.9x. On a TTM basis (FY2025 RMB 957 million - estimated 1H2025 RMB 441 million + 1H2026 RMB 452 million ≈ RMB 968 million), the P/E was approximately 36.5x. For P/B, based on equity attributable to shareholders of RMB 7.556 billion at the end of 1Q2026, implying net assets per share of approximately RMB 8.92, the P/B was approximately 4.7x. Another third-party F10 page listed net assets per share of RMB 8.83, reflecting a slightly different definition (https://m.hx168.com.cn/stock/F10/002126.html ). Historical market-capitalization reference points from third-party quotation pages, used for cross-checking and dated differently: aastocks reported market capitalization of RMB 36.543 billion and free-float market capitalization of RMB 34.269 billion, updated 2026-02-06; the aastocks Traditional Chinese page reported market capitalization of RMB 35.951 billion and free-float market capitalization of RMB 33.714 billion, updated 2026-03-31; a Sina Finance snapshot showed a share price of RMB 48.040 on 2026-04-14, up RMB 0.80 (+1.69%). Key uncertainties: the above P/E and P/B figures are calculated estimates, and total market capitalization/share-count definitions differ across sources, including whether the 10.0608 million shares held in the buyback account are included and whether free-float market capitalization is used. If the report refers to “dynamic P/E (TTM),” it should be labeled “self-calculated” or cross-checked against the data vendor’s market page for the relevant date. Institutional-rating and target-price coverage is insufficient and should be clearly qualified: the only confirmed target price obtained was CNY46.3 (+15.6%) from the Shifort/cyberquote report, but this came from a single institution and single source at an earlier date (2026-01-27). The target-price ranges and rating distribution of securities firms after the 2026 interim report, as well as multi-institution consensus estimates for 2026–2028, were not obtained. Accordingly, this memorandum cannot provide a conclusion regarding the “current consensus P/E” or “average target price”; this section should be left blank or marked “pending.” Risks and uncertainties: 1. In 2026, profit growth diverged sharply from revenue growth, mainly because of foreign-exchange effects and raw-material costs. Whether these effects are reversible or irreversible requires further assessment. If the trend continues in 2H2026, full-year growth in net profit attributable to shareholders may be materially below revenue growth, with 1H growth at only 2.5%, directly affecting the denominator of TTM P/E and the valuation framework. 2. Differences in segment definitions should be precisely reconciled using the annual report text. 3. Dates must be identified alongside the data: financial statements as of 2026-06-30, disclosed on 2026-08-26/27; market snapshot on 2026-08-27, at approximately RMB 41.67; third-party market-capitalization pages dated 2026-02-06 and 2026-03-31; institutional views spanning 2025-11 to 2026-09.

4. Recent News and Announcements

4.1 Completion of the Latest Share Buyback Program in 2026

On April 28, 2026, the company convened the 36th meeting of the ninth session of the Board of Directors and approved a share buyback plan for equity incentives or an employee stock ownership plan. The plan provided for total funding of no less than RMB 50 million and no more than RMB 100 million, with a maximum buyback price of RMB 68.00 per share. This was adjusted to RMB 67.88 per share from May 22, 2026, following the distribution of rights and interests. The implementation period was no more than 12 months from the date of Board approval. Funding sources were the company’s own funds and a special stock-repurchase loan. The company had obtained a commitment from the Tiantai branch of China Construction Bank for a special repurchase loan of no more than RMB 90 million with a three-year term. On May 12, 2026, the company first repurchased 201,100 shares through centralized competitive bidding, representing 0.0237% of total shares, at a high of RMB 51.03 and a low of RMB 48.18 per share, with total consideration of RMB 9,991,488.85 excluding fees. As of June 30, 2026, cumulative repurchases totaled 1,530,000 shares, representing 0.1807% of total shares, at a high of RMB 59.19 and a low of RMB 46.50 per share, with transaction value of RMB 78,557,582.39 excluding fees. As of July 3, 2026, cumulative repurchases totaled 1,954,700 shares, representing 0.2294% of total shares, at a high of RMB 59.19 and a low of RMB 46.50 per share. Total funds used were RMB 99,999,687.44 including transaction fees, reaching the upper limit of the repurchase funds. The buyback was completed (Announcement No. 2026-059, disclosed on 2026-07-03). The repurchased shares are held in a dedicated account. If they are not used for incentives within 36 months, the unused shares will be canceled in accordance with the law. The company stated that, as of the disclosure date of the buyback report, directors, senior executives, the controlling shareholder, the actual controller, shareholders holding more than 5% and persons acting in concert had no clear plans to reduce their holdings in the following three or six months. Note that there is a minor discrepancy between media reporting, which cited 2026-05-11 as the disclosure date, and the company’s announcements, which stated that the plan was disclosed on 2026-04-29 and the report on 2026-05-12. The original announcements, Nos. 2026-032 and 2026-035, on the cninfo website should prevail.

4.2 Disclosure of the 1Q2026 Report

The company disclosed its 1Q2026 report on April 27/28, 2026: operating revenue was RMB 4.245 billion, up 24.27% YoY; net profit attributable to shareholders was RMB 214 million (RMB 214,047,300.34), up 0.79% YoY; net profit attributable to shareholders excluding non-recurring items was RMB 205 million, down 1.65% YoY; net cash flow from operating activities was negative RMB 312 million, compared with negative RMB 135 million in the same period last year, a decrease of approximately 130% YoY. The company stated that this was primarily due to increased payments to suppliers. Basic EPS was RMB 0.26; weighted ROE was 2.83%, down 0.52 percentage points YoY; gross margin was 18.59%, down 1.2 percentage points YoY and 0.64 percentage points QoQ; net margin was 5.67%. Profit growth was lower than revenue growth. Sell-side analysts generally attributed this to foreign-exchange losses, tariffs and higher raw-material prices. Finance expenses increased 1470.5% YoY in 1Q, while the comprehensive expense ratio was 11.2%, up 0.5 percentage points YoY. The number of shareholders was 39,800, and the top 10 shareholders collectively held 170 million shares, representing 20.03%.

4.3 Implementation of the FY2025 Distribution of Rights and Interests

On May 8, 2026, the 2025 annual general meeting approved the FY2025 profit-distribution plan: based on the total shares outstanding on the equity-registration date excluding repurchased shares, the company would pay a cash dividend of RMB 1.20 per 10 shares, including tax, with no bonus shares or capitalization of capital reserves. The equity-registration date was May 21, 2026, and the ex-dividend and ex-rights date was May 22, 2026. The actual total cash dividend was RMB 100,385,308.32. Due to the distribution, conversion of “Yinlun Convertible Bonds” was suspended during the period from May 13, 2026 to the equity-registration date. The conversion period runs from December 13, 2021 to June 6, 2027.

4.4 Controlling Subsidiary Langxin Electric Listed on the Beijing Stock Exchange

Jiangsu Langxin Electric Co., Ltd., a controlling subsidiary of Yinlun, was approved by the Beijing Stock Exchange and listed on the exchange on May 22, 2026. On the listing date, it terminated its listing on the National Equities Exchange and Quotations. The company stated that the listing would help improve its supply capacity for passenger-vehicle cooling modules and new-energy-vehicle cooling-module systems, as well as the value of its equity stake. Related background: at the third extraordinary general meeting of shareholders of 2025 held on December 30, 2025, shareholders approved the proposal to extend the validity period of the resolution on the public offering of shares to unspecified qualified investors by the controlling subsidiary and its listing on the Beijing Stock Exchange. Shareholders representing 205,718,120 shares, or 24.6324%, attended, and the approval rate was 99.8793%. The specific offering size, funds raised and the company’s ownership percentage in Langxin Electric were not obtained in this search.

4.5 External Investment and Extension of Fundraising Projects

An announcement dated December 29, 2025 stated that the company planned to inject approximately RMB 268.85 million (RMB 268.85 million, equivalent to approximately USD 38.37 million) of its own funds into its wholly owned subsidiary Shanghai Yinlun Investment Co., Ltd. The funds would ultimately be invested in a newly established wholly owned subsidiary in Mexico for the construction of a Mexico production base. The construction period was January 2026 to July 2027, and the transaction did not constitute a related-party transaction. An announcement issued the same day stated that, due to customers’ localized-support requirements and adjustments to capacity-construction plans, the investment periods for the two fundraising projects, “New-Energy-Vehicle Battery and Chip Thermal-Management Products Project” and “New-Energy Passenger-Vehicle Heat-Pump Air-Conditioning System Project,” would both be extended to September 2026.

4.6 Equity Incentives and Options

The third exercise period of the reserved-grant portion of the 2022 stock-option incentive plan adopted an autonomous exercise model (announced on 2025-10-23); the cancellation of certain options was completed under an announcement dated 2025-10-18. On May 15, 2026, due to the distribution of rights and interests, the exercise price under the 2022 stock-option incentive plan was adjusted, as disclosed on the same day in the resolution of the 37th meeting of the ninth Board of Directors. The buyback-completion announcement dated 2026-07-03 disclosed that, during the buyback period, certain directors and senior executives exercised options under the fourth tranche of the initial grant of the 2022 option incentive plan and received additional shares. For example, director and deputy general manager Chai Zhonghua exercised 244,200 shares on July 1.

4.7 Shareholder and Corporate-Governance Developments

An announcement dated September 20, 2025 concerned the implementation of share sales by directors and senior executives. An announcement dated September 19, 2025 concerned abnormal fluctuations in stock trading, indicating relatively large short-term price volatility at the time; the specific sellers and quantities require reference to the original text. On November 6, 2025, the company announced the resignation of a non-independent director and the election of an employee representative director. On November 4, 2025, it announced developments relating to guarantees provided to subsidiaries. On October 15, 2025, the company issued a series of announcements on amendments to corporate rules, including the Rules of Procedure for the Board of Directors, the Independent Director Working System and the Rules of Procedure for Shareholders’ Meetings, as well as changes to registered capital and business scope and amendments to the Articles of Association. The above information appeared only on a single aggregation page, and details should be verified against the original cninfo announcements.

4.8 Institutional Research Activities

On May 15, 2026, the company disclosed the “Investor Relations Activity Record” (No. 2026-005). Participants included CCB Principal Asset Management, Changxin Asset Management, Orient Securities, ICBC Credit Suisse, Guojin Securities, Huaan Funds and E Fund, among others, with 16 participants in total. Secretary to the Board Chen Min hosted the meeting. Key points: ① the buyback was based on confidence in business prospects, served the 2030 targets and was intended for subsequent employee incentives; ② the automotive segment is expected to grow steadily over the next five years, driven primarily by strong overseas growth, domestic customer-category expansion and share gains; ③ diesel power-generation operations were in the capacity-ramp-up phase, with customer orders and production schedules continuing to increase, while the gas-power-generation exhaust-emissions-treatment business was scheduled to begin deliveries in 4Q2026; ④ data-center liquid cooling was centered on stainless-steel plate heat exchangers for liquid-cooling CDUs, with customer expansion, validation and capacity deployment progressing smoothly; ⑤ the humanoid-robot business was structured as “1+4+N,” with multiple product categories receiving customer nominations, some entering small-batch production and generating revenue. These statements are based on company disclosures and have not been independently verified.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

The current price of RMB 38.77 is below multiple moving averages, including MA5/MA10/MA20/MA50/MA200, indicating a bearish moving-average alignment. MACD was negative in late August (-0.55) and turned positive at +0.21 in the September 4 snapshot, suggesting an unconfirmed short-cycle recovery. RSI(14) was in the relatively weak 40–43 range. The Bollinger range was roughly estimated at RMB 38–44, with the current price close to the lower band. KDJ/BOLL/RSI showed no clear signal across mainstream tools, indicating weak consolidation. Important caveats: precise values for MA/MACD/RSI/BOLL on September 11, 2026 were unavailable. The latest complete snapshot was from September 4, with September 21 being an earlier snapshot, creating a time lag. The BOLL range of RMB 38–44 was a rough estimate assembled from multiple sources. The 52-week high and low differ across platforms, at 61.88/31.58 versus 62.00/31.70 and certain outliers. This memorandum adopts the two mainstream sources, although differences in adjustment methods and observation windows may remain. Main-force funds recorded net outflows for three consecutive days, while the 20-day net outflow was approximately RMB 24.36 million. Institutional participation of 24.68% indicates light control. The chip-cost average of approximately RMB 44.8 from a single source is above the current price, suggesting substantial overhead supply.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is only a subjective scenario analysis based on historical prices, technical indicators and capital-flow data. It does not constitute investment advice or a guarantee of future performance. Investors should make independent judgments and bear the risks themselves.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Scenario A — range-bound consolidation (relatively higher weight, approximately 50%–60%; subjective heuristic weight, not a statistical probability): The trigger would be no major news and trading value remaining in the current RMB 400–500 million range, with the share price fluctuating within the RMB 37.9–40.4 trading range. This corresponds to the current situation of a 0.83 volume ratio on September 11 and no clear signals from mainstream tools. If volume contracts to below RMB 400 million without a new low, the probability of consolidation would increase.
• Scenario B — weak decline (medium weight, approximately 30%; subjective heuristic weight, not a statistical probability): The trigger would be a volume-backed break below RMB 37.9 together with continued single-day net outflows of main-force funds, using the September 8 net outflow of RMB 91.83 million as a reference. The share price could then test the strong-support range of RMB 35.6–36.6. In an extreme case, the downside toward the 52-week low of RMB 31.6–31.7 could open. The recent three consecutive days of main-force outflows and four consecutive days of DDX large-order outflows, based on a single Jiufang source, mean this scenario cannot be ignored.
• Scenario C — strengthening rebound (lower weight, approximately 10%–20%; subjective heuristic weight, not a statistical probability): The trigger would be a volume-backed breakout above RMB 40.4 and sustained trading above that level, with trading value recovering to above RMB 700–800 million, referencing the September 8 volume level. The auto-parts, liquid-cooling and computing-power sectors would also need to strengthen in tandem, or there would need to be a positive catalyst involving substantive orders or customer validation. The initial target would then be the RMB 41.3–42.9 resistance zone.
• Weight explanation (the above 50%–60%/30%/10%–20% descriptions): These weights are subjective heuristic estimates based on the current bearish moving-average alignment, consecutive main-force outflows and weak volume ratio. They are not statistical probabilities and are not precise; they should not be interpreted as win rates.

③ Capital and Liquidity Background

The current price of RMB 38.77 is below the chip-cost average of approximately RMB 44.8, based on a single Jiufang source that has not been cross-validated and reflects snapshot data. This suggests substantial overhead supply and potential selling pressure during rebounds. Main-force funds have recorded net outflows for three consecutive days, while the 20-day net outflow was approximately RMB 24.36 million according to the CLS/stcn definition as of September 11. The margin balance represented only approximately 1.7% of free-float market capitalization, below the market average of 4.37%. Institutional participation of 24.68% indicates light control, suggesting that incremental funds are not currently dominant and that short-term performance may be easily affected by retail and speculative sentiment. As of June 30, 2026, Northbound funds held 3.94% of shares, a substantial QoQ increase and a medium-term positive capital-flow signal. However, this is a quarter-end figure and the structure may have changed; the latest disclosures should prevail. Recent turnover was approximately 1.2%–2.7%, with trading value of approximately RMB 400–860 million. With free-float market capitalization of RMB 30.8 billion and daily trading value of approximately RMB 500 million, liquidity is adequate. However, among 280 stocks in the auto-parts sector, the company is a mid-cap rather than a highly liquid stock. Under low-liquidity conditions, investors should be mindful of thin order books and potentially larger slippage.

If daily trading value subsequently remains above RMB 700 million, materially higher than the recent normal midpoint of RMB 400–500 million, this could be viewed as a signal of fund replenishment and an increased probability of Scenario C. Conversely, if trading value remains below RMB 400 million while the price center moves lower, the setup would favor Scenarios A/B.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether RMB 37.9, the lower boundary of first support, and RMB 35.6, the lower boundary of strong support, can hold. A breakdown would point toward the 52-week low of RMB 31.6–31.7.
• Observe whether RMB 40.4 and the RMB 41.3–42.9 resistance zone can be reclaimed sequentially with increased volume.
• Observe whether main-force daily flows can turn from consecutive net outflows to net inflows and whether trading value can return above RMB 700 million.
• Observe the linkage of the auto-parts sector and liquid-cooling/computing-power themes, as the stock has strong thematic characteristics and sector beta may have a significant short-term impact. The above are observation points only, not trading instructions.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. In the short term, the share price will also be affected by news flow, capital flows, the broader market environment and other factors. Technical indicators themselves have lagging characteristics and limitations, particularly because some of the latest complete technical snapshots in this report are from September 4 and August 21 rather than September 11. This does not constitute a guarantee of future performance or a buy/sell recommendation. Investors should independently assess the latest market information and bear the investment risks themselves.

6. Industry Landscape and Competitor Analysis

7. Risk Factors

• Profit growth in 1H2026 was significantly below revenue growth, with net profit attributable to shareholders increasing only 2.50% YoY. If foreign-exchange gains and losses, higher finance expenses or raw-material inflation persists, full-year profit may continue to lag revenue growth.
• Passenger-vehicle thermal-management revenue accounted for 49.70% of 1H2026 revenue, but its gross margin was only 12.66%, below that of commercial-vehicle and off-road and digital and energy businesses. If the passenger-vehicle mix declines less than expected or price competition intensifies, overall gross margins may remain under pressure.
• Heat-exchanger products accounted for 93.36% of 1H2026 revenue, indicating a high degree of business concentration. Fluctuations in aluminum, copper, stainless steel and other raw-material prices may directly affect product costs and profits, while the data do not provide a complete description of cost-pass-through arrangements.
• Net cash flow from operating activities was negative RMB 312 million in 1Q2026, down approximately 130% YoY. The company attributed this mainly to increased payments to suppliers. If continued revenue expansion continues to tie up working capital, it may pressure cash-flow quality and subsequent capacity investment.
• Although digital and energy thermal management, humanoid robots and other new businesses are growing rapidly or have obtained customer nominations, some remain in customer-validation, capacity-deployment, capacity-ramp-up or small-batch-production stages. These developments are primarily based on company disclosures, and their scale-up and profit contribution remain uncertain.
• The company is advancing construction of its Mexico production base, with a planned construction period from January 2026 to July 2027. The investment periods for two new-energy fundraising projects have also been extended to September 2026. Overseas construction, project delays and the pace of capacity deployment may affect capital-use efficiency and the speed of business realization.
• North America, Europe and other overseas businesses account for a meaningful share of revenue. In 1H2026, North America accounted for 14.55% of revenue and Europe for 7.77%. Overseas operations are also exposed to foreign-exchange volatility, and the sharp increase in finance expenses in 1H2026 indicates that currency factors may disrupt profits.
• As of September 11, 2026, the share price was below multiple moving averages and main-force funds had recorded net outflows for three consecutive days. The estimated chip-cost average of approximately RMB 44.8 comes from a single source and has not been cross-validated. If the share price continues to break below support around RMB 37.9, the weak trend may continue, although technical indicators are subject to time lags and the relevant ranges are not certain.

8. Conclusion and Outlook

Yinlun Machinery’s medium- to long-term growth logic primarily comes from its traditional automotive and off-road thermal-management core business, the expansion of new-energy-vehicle thermal management and the relatively rapid growth of digital and energy thermal management. In 1H2026, the higher-margin commercial-vehicle and off-road and digital and energy businesses both grew faster than the passenger-vehicle business. If their revenue contribution continues to increase, the business mix should improve. Overseas customer expansion, mass-production deliveries from the Malaysia base and construction of the Mexico base should support the company’s global supply capabilities.

The central issue currently is that revenue expansion has not yet translated sufficiently into profit growth. Passenger vehicles still account for nearly half of revenue and have relatively low margins, while raw-material prices, foreign-exchange gains and losses and finance expenses have a significant impact on profits. At the same time, digital energy, liquid cooling, humanoid robots and other new businesses remain in customer-validation, capacity-ramp-up or small-batch-production stages. The certainty and pace of their future contribution still require further validation through order realization, scaled deliveries and improved profitability.

Looking ahead, key items to monitor include margin recovery across the automotive thermal-management segments, whether finance expenses and foreign-exchange impacts ease, whether operating cash flow improves, and whether digital energy and overseas projects achieve scaled deployment. The short-term technical picture remains weak. Support around RMB 38 and RMB 37.9, as well as resistance at RMB 40.4 and RMB 41.3–42.9, are market focus areas. However, some technical data are from earlier snapshots and do not constitute a forecast or a buy/sell recommendation.

Data Sources

• 002126 Yinlun Machinery
• Yinlun Machinery (002126 CH)
• 002126 Yinlun Machinery - Core Themes
• 002126 Yinlun Machinery - Principal Business Scope
• Yinlun Machinery (002126)_Company Overview_Stock Price_Real-Time Market Data_Charts_News_Research_FinScope-AI Makes Investing Simpler
• Yinlun Machinery (002126)_Company Profile_China Financial Information Network
• Yinlun Machinery Listed-Company Information
• Stock Code: 002126; Stock Abbreviation: Yinlun Machinery; Bond Code: 127037; Bond Abbreviation: Yinlun Convertible Bonds
• Yinlun Machinery (002126.SZ) - Quick Quote
• Yinlun Machinery (002126.SZ) - US Stocks
• Announcement on the Listing and Trading of Shares of Zhejiang Yinlun Machinery Co., Ltd._China Securities Journal
• Yinlun Machinery: 38.77 -1.95% -0.77 002126 Sohu Securities
• 002126 | Zhejiang Yinlun Machinery Co Ltd Stock - Investing.com - Yinlun Machinery (002126)
• Yinlun Machinery (002126.SZ) - Quick Quote
• Yinlun Machinery (002126.SZ) Deep F9 Data
• Yinlun Machinery (002126.SZ)
• Yinlun Machinery: Margin Purchases of RMB 23.7504 Million on September 10; Margin-Trading Balance of RMB 549 Million - Stockstar
• SZSE-Listed Companies_China Securities Journal
• Yinlun Machinery: Commercial-Vehicle Sales Decline, Revenue Growth Slows
• Yinlun Machinery: Continued Customer Expansion, Breakthrough in New-Energy Thermal Management for Joint-Venture Supply
• Yinlun Machinery: Steady Revenue Growth, Short-Term Earnings Pressure
• Analysis of Yinlun Machinery’s Investment Value from a Supply-Chain Perspective: Global Deployment and Cost Control Build Long-Term Barriers
• Yinlun Machinery - 2022 Interim Report
• Yinlun Machinery
• Yinlun Machinery: EGR Coolers Expected to Deliver Explosive Growth_Financial Panorama
• Yinlun Machinery (002126): 1H21 Profitability Under Pressure; Focus on Strong Long-Term Growth in New-Energy Business
• Yinlun Machinery - Deep-Dive Research: Inflection Point Reached; New-Energy Thermal Management Ready to Accelerate - 220916 (33 pages)
• Yinlun Machinery: 2022 Interim Report
• Accounts Receivable Collection by Reporting Period
• Yinlun Machinery - Company Research Report: Thermal-Management Capabilities Extend into Digital Energy, Forging a Third Growth Curve - 240813 (25 pages)
• Yinlun Machinery (002126): 2024 Annual Tracking Rating Report
• Yinlun Machinery (002126) - Operating Analysis
• Yinlun Machinery (002126): Principal Business Operating Analysis
• Yinlun Machinery: 2023 Annual Report
• Yinlun Machinery (002126): 2025 Annual Tracking Rating Report
• Yinlun Machinery (002126): 2024 Annual Tracking Rating Report
• Yinlun Machinery (002126)_Stock Analysis_Top Finance
• Yinlun Machinery Industry Position: Domestic Thermal-Management Replacement Leader, Core North American New-Energy Vehicle Supplier and Global Commercial/Passenger Vehicle Dual-Engine Growth
• Yinlun Machinery - Production Bases and R&D Centers
• Yinlun Machinery (002126) - Industry Comparison
• Yinlun Machinery (002126)
• Yinlun Machinery Growth Outlook: High Growth in New-Energy Thermal Management, Digital-Energy Volume Ramp and Globalized Profitability
• Yinlun Machinery Industry Position: Domestic Leader in Heat Exchangers, Leading New-Energy Thermal Management, Accelerating Global Expansion
• Yinlun Machinery (002126): 2024 Net Margin Improves; Digital Energy and Robotics Could Enter a High-Growth Phase_Jiufang
• Yinlun Machinery: Advancing into the “15th Five-Year Plan” with Core Capabilities
• Yinlun Machinery (002126): 3Q2025 Profit Up YoY; Server Liquid Cooling and Robotics Expansion Continues
• 96% Capacity Utilization + 30% Gross Margin: Is Yinlun Machinery Winning Big?
• Zhejiang Yinlun Machinery Co., Ltd. 2025 Annual Report Summary - 2026
• [[3Q Report] Yinlun Machinery (002126): 3Q2025 Report](http://vipwt1.cfi.net.cn/p20251029000582.html#1)
• Yinlun Machinery: 3Q2025 Report
• Yinlun Machinery: 3Q2025 Report
• Yinlun Machinery
• Yinlun Machinery (002126): Steady Revenue Growth; Continued Expansion in Digital Energy and Embodied Intelligence
• Yinlun Machinery: 9M2025 Net Profit of RMB 672 Million, Up 11.18% YoY
• Yinlun Machinery (002126): 3Q2025 Profit Up YoY; Continued Expansion into Server Liquid Cooling and Robotics
• Yinlun Machinery: 9M2025 Net Profit of RMB 672 Million, Up 11.18% YoY
• Yinlun Machinery: 3Q2025 Report
• Yinlun Machinery (002126.SZ): 9M2025 Net Profit Up 11.18% YoY
• Yinlun Machinery (002126): 2Q Performance Overcomes Industry Beta; Digital-Energy Business Accelerates
• Yinlun Machinery: 1H2026 Revenue Up 25.93%; Net Profit Up 2.50%
• Yinlun Machinery (002126): Automotive Business Performs Steadily; Digital Energy Becomes New Growth Engine
• Yinlun Machinery (002126): All Three Segments Grow; Digital Energy and Embodied Intelligence Form New Growth Engines
• Yinlun Machinery (002126) 2026 Interim-Report Commentary: Stable 2Q Growth; Emerging Businesses Progress Steadily
• Yinlun Machinery (002126.SZ): 1H2026 Net Profit of RMB 452 Million
• Financial Report Express | Yinlun Machinery: 1H2026 Revenue Up but Profit Flat; Finance Expenses Surge 28-Fold and Cash Flow Declines
• Yinlun Machinery 1H Net Profit Attributable to Shareholders of RMB 452 Million, Up 2.5% YoY
• Yinlun Machinery: 1H2026 Net Profit of RMB 452 Million, Up 2.5% YoY - Latest Price: 41.67
• Yinlun Machinery: 1H2026 Revenue Up 25.93%; Digital-Energy Business Flourishes
• Yinlun Machinery: 1Q2026 Net Profit of RMB 214 Million, Up 0.79% YoY
• Yinlun Machinery (002126) 1Q2026 Commentary: Stable 1Q Growth; Emerging Businesses May Open New Growth Space
• Yinlun Machinery (002126): Results in Line with Expectations; Liquid Cooling + Power Businesses Accelerate
• Yinlun Machinery (002126): Revenue Growth Beats Expectations; Liquid Cooling and Power Businesses Poised to Materialize
• Yinlun Machinery: 1Q2026 Net Profit of RMB 214 Million, Up 0.79% YoY
• 1Q2026 Revenue Increased Rapidly; Continued Expansion in Server Liquid Cooling and Other New Areas
• Yinlun Machinery: 1Q Net Profit of RMB 214.0473 Million, Up 0.79% YoY
• Yinlun Machinery: 1Q Net Profit of RMB 214.0473 Million, Up 0.79% YoY
• Revenue Growth Beats Expectations; Liquid Cooling and Power Businesses Poised to Materialize - Stockstar
• Yinlun Machinery: 1Q2026 Report - Stockstar
• Yinlun Machinery: FY2025 Net Profit Up 22.17%; Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery (002126.SZ): FY2025 Net Profit Up 22.17%; Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery: FY2025 Net Profit Up 22.17%; Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery: Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery FY2025 Revenue and Net Profit Both Up More Than 20%; Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery: FY2025 Net Profit of RMB 957 Million, Up 22.17% YoY - Quick Quote
• Yinlun Machinery: FY2025 Net Profit Up 22.17%; Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery FY2025 Revenue and Net Profit Both Up More Than 20%; Proposed Dividend of RMB 1.2 per 10 Shares - China Securities Journal
• Yinlun Machinery: Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery: Proposed Dividend of RMB 1.2 per 10 Shares
• Yinlun Machinery (002126)_Full Announcements
• Yinlun Machinery (002126.SZ): Capital Injection into Shanghai Yinlun Investment Ultimately for Newly Established Mexican Subsidiary
• Stock Code: 002126; Stock Abbreviation: Yinlun Machinery; Announcement No. 2025-083; Bond Code: 127037; Bond Abbreviation: Yinlun Convertible Bonds
• Yinlun Machinery: Investment Periods for Two Fundraising Projects Extended to September 2026
• Yinlun Machinery
• Stock Channel - China Financial Information Network
• Yinlun Machinery (002126)
• Yinlun Machinery: RMB 269 Million Capital Injection into Shanghai Yinlun Investment for Mexico Production Base
• Resolution of the Third Extraordinary General Meeting of Shareholders of Zhejiang Yinlun Machinery Co., Ltd. in 2025
• Yinlun Machinery: Proposed RMB 269 Million Capital Injection into Shanghai Yinlun Investment
• Yinlun Machinery (002126 CH) - Automotive Thermal-Management Leader, Continuing to Expand Growth Curves - Research Report
• Yinlun Machinery: Announcement on Adjusting the Maximum Share-Buyback Price Following Distribution of Rights and Interests
• Yinlun Machinery (002126): Adjustment of Maximum Share-Buyback Price Following Distribution of Rights and Interests
• Yinlun Machinery: Announcement on Share-Buyback Progress
• Yinlun Machinery: Share-Buyback Report
• Yinlun Machinery: Proposed RMB 50–100 Million Share Buyback
• Yinlun Machinery: Proposed RMB 50–100 Million Share Buyback for Equity Incentives or Employee Stock Ownership Plan_Jiufang
• Yinlun Machinery (002126): Investor Relations Management Information 20260515
• Yinlun Machinery (002126.SZ) Controlling Subsidiary Langxin Electric Listed on the Beijing Stock Exchange
• Announcement on the Share-Buyback Progress of Zhejiang Yinlun Machinery Co., Ltd.
• Yinlun Machinery: Proposed Buyback of No More Than 1.4706 Million Shares
• Yinlun Machinery (002126): 1Q2026 Revenue Increased Rapidly; Continued Expansion in Server Liquid Cooling and Other New Areas
• Yinlun Machinery (002126.SZ): 1Q2026 Net Profit of RMB 214 Million
• Yinlun Machinery (002126): Results of Share Buyback and Changes in Shares
• Yinlun Machinery: Summary of Announcement on Results of Share Buyback and Changes in Shares - Stockstar
• Announcement on Results of Share Buyback and Changes in Shares by Zhejiang Yinlun Machinery Co., Ltd. - Sina Finance
• Yinlun Machinery (002126.SZ): Cumulative Buyback of 1.9547 Million Shares Completed
• Yinlun Machinery: Summary of Announcement on Results of Share Buyback and Changes in Shares
• Yinlun Machinery (002126.SZ): Cumulative Buyback of 1.53 Million Shares
• Yinlun Machinery: Announcement on Share-Buyback Progress
• Yinlun Machinery (002126.SZ): Cumulative Buyback of 1.9547 Million Shares Completed
• [[News Flash] Yinlun Machinery Share-Buyback Update](https://wt.cfi.cn/p20260701001760.html)
• Yinlun Machinery: Share Buyback Completed, Nearly RMB 100 Million Spent
• Yinlun Machinery (002126.SZ) Operating Analysis - Principal Business Scope
• Yinlun Machinery (002126): Space, Industry Structure and Competitiveness in Resonance; Liquid-Cooling Plate Heat Exchangers Create a New Growth Pole
• Yinlun Machinery (sz002126)
• Yinlun Machinery 38.77 -0.77 (-1.95%) Latest Price, Market Data and Chart - Eastmoney
• e Company, the First Platform for Listed-Company Information
• Yinlun Machinery (sz002126) Market Data
• Yinlun Machinery (sz002126) Market Overview
• Yinlun Machinery 38.77 -1.95%_Market Data_Jiufang
• Yinlun Machinery 40.40 0.75%_Market Data_Jiufang
• Yinlun Machinery (sz002126) Market Data - September 9, 2026 15:54:53 Beijing Time
• Yinlun Machinery (sz002126) - Margin Financing
• Zhejiang Yinlun Machinery Co Ltd Technical Analysis (002126) - Yinlun Machinery (002126)
• Yinlun Machinery (002126) Technical Analysis
• Thinking About the Essence of Price Swings Through a Trading-System Framework
• Yinlun Machinery (002126) Thousands of Stocks, Thousands of Opinions - Eastmoney
• Yinlun Machinery_Anniu
• Yinlun Machinery_Anniu
• Yinlun Machinery (002126)_Latest Price, Market Data and Chart - Eastmoney
• Currently in a Short-Term Narrow Consolidation Phase_Yinlun Machinery (sz002126)_Sina Community
• Yinlun Machinery (002126) Technical Analysis
• Yinlun Machinery (002126) Latest Price, Market Data, Chart and Technical Analysis - Investing.com
• Yinlun Machinery (002126) Main-Force Funds Net Sold RMB 26.1578 Million on September 11 - Stockstar
• Yinlun Machinery (002126) Main-Force Funds Net Sold RMB 27.1610 Million on September 10 - Stockstar
• Yinlun Machinery Down 2.07%, Trading Value RMB 57.2107 Million, Main-Force Net Outflow RMB 3.1557 Million
• Yinlun Machinery (002126) Capital Flows - Eastmoney
• Yinlun Machinery Down 2.00%, Trading Value RMB 110 Million, Main-Force Net Outflow RMB 6.8854 Million
• Yinlun Machinery Up 2.06%, Trading Value RMB 265 Million, Main-Force Net Inflow RMB 20.2347 Million
• Yinlun Machinery (002126.SZ)
• On September 8, Yinlun Machinery Fell 5.18%; Guotai Smart Auto Stock A Held a Significant Position
• Yinlun Machinery (sz002126) Share Price, Real-Time Market Data and Chart - Sina Finance
• Yinlun Machinery (002126) Share Price and News - Finance
• Yinlun Machinery (sz002126) Share Price, Real-Time Market Data and Chart - Sina Finance Client
• Yinlun Machinery (SZ:002126)
• Yinlun Machinery (002126) - Stock Market Data | Benyuan Quant
• 002126: Yinlun Machinery - MSN Finance
• Yinlun Machinery (002126) Historical Data: Historical Market Data, Prices and Charts - Investing.com
• Yinlun Machinery (002126) Analyst Consensus Estimates and Market Sentiment - Investing.com

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current through the close of trading on September 11, 2026 (Friday); retrieval was completed around mid-September 2026, and timing differences may exist. Specific data should be verified against the company’s official announcements and authoritative data terminals. This report is for information organization and research reference only, does not constitute investment advice, and investors should make independent judgments and bear the investment risks themselves.