Shanghai Moons' Electric Co., Ltd. (603728)

Equity Research Report | Industry: Electrical Machinery & Equipment Manufacturing (C38) | Report Date: September 13, 2026 | Close of September 11, 2026 (Friday); Research executed around September 12, 2026

This report is auto-generated by AI based on public information for reference only and does not constitute investment advice.

1. Core Summary

Moons' Electric reported revenue of RMB 1.567 billion in H1 2026, up 19.21% year-on-year, with net profit attributable to shareholders of RMB 37.2007 million, up 38.01% year-on-year. Non-GAAP net profit attributable to shareholders rose 26.87% year-on-year, and the consolidated gross margin climbed to 37.69%. Within this, the Control Motors and Drive Systems segment generated revenue of RMB 1.381 billion, accounting for 88.15% of total revenue, with revenue up 26% year-on-year and a gross margin of 38.52%, serving as the core driver of performance improvement. The Vietnam plant saw revenue rise 43% year-on-year in H1 and achieved profitability, indicating improved utilization of overseas capacity.

The company operates in the motion control core components and systems market, with its stepper systems enjoying a globally competitive advantage. Coreless motors, brushless motors, servo systems, and robot joint modules constitute the medium- to long-term growth directions. In 2025, overseas revenue accounted for approximately 45% of total revenue. The company has over 30 overseas subsidiaries and technology-oriented assets in Europe and the U.S., with relatively low customer and supplier concentration, helping to diversify single-customer or single-supplier risks. However, global operations also entail higher R&D, marketing, and management expenses.

The earnings recovery remains in its early stages. In 2025, revenue grew 14.32% year-on-year, but net profit attributable to shareholders fell 21.54% year-on-year, with the net margin dropping to a low level. In H1 2026, profit growth outpaced revenue growth, but Q2 net profit attributable to shareholders slowed to 18.31% year-on-year growth, while non-GAAP net profit grew only 5.23% year-on-year. Meanwhile, net operating cash flow was only RMB 10.4188 million, down 79.39% year-on-year, reflecting working capital pressure from business expansion and inventory buildup.

As of September 11, 2026, the share price was RMB 47.41, with a TTM P/E ratio of approximately 278x and a P/B ratio of 6.68x. Valuation clearly depends on future earnings growth and robot-related business expectations. Technically, the stock price quickly retraced after hitting the daily limit on September 3, falling 5.43% cumulatively from September 7 to 11. It is currently below MA5 of approximately RMB 49.01, with both trading volume and volume ratio on the low side, in a state of weak consolidation following a pullback from highs.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Control Motors and Drive Systems (core business, 83.02% of revenue in 2025, 88.15% in H1 2026): Includes control motors (execution layer: stepper motors, coreless motors, DC brushless motors, servo motors, frameless motors, etc.), drives and control systems (control layer: through the joint venture Anpu Moons' and the acquisitions of U.S.-based AMP and Switzerland-based T Motion, building a global operating network; has established five major platforms — stepper systems, DC brushless systems, AC servo systems, low-voltage servo systems, and integrated control systems; next-generation products include M5 series servo drives, MCX motion controllers, and MCA mid-size motion PLCs), and mechatronic modules (application layer: leveraging the modular technology of acquired U.S.-based LIN and self-developed high-precision lead screw production lines to produce high-precision reducers, linear lead screw modules, integrated joint modules, hub/wheel-side motor modules, dexterous hand finger joint modules, etc.)
• Power Supply and Lighting Control Systems: LED intelligent lighting control and drive systems (focused on high-end niches such as intelligent dimming, high-power stadium lighting, explosion-proof specialty lighting, and LED intelligent light control management systems); power supply control systems (dedicated power supplies for financial printing equipment, dedicated power supplies for power protection equipment, ignition control for commercial/residential boiler burners)
• Equipment Condition Management Systems: Integrated solutions for industrial equipment predictive maintenance (PHM); 2025 revenue of RMB 52.39 million, +29.6%, gross margin 69.76% (highest gross margin within the segment but smallest in scale)
• Trading Agency Business: Primarily relays for the power industry; 2025 revenue of RMB 216.89 million, -7.9%; the company cites continued deepening of domestic substitution for power industry relays and other products

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

Moons' Electric operates in the broad industrial automation motion control core components market (motors + drives + controls + modules), with downstream coverage spanning semiconductor equipment, lithium battery/PV equipment, 3C non-standard automation, medical and biochemical analysis instruments, robots (including humanoid robots), smart vehicles, data center liquid cooling, security, textiles, 3D printing, etc. The following is organized by upstream cost side, downstream customer side, working capital occupation, gross/net margin trends, and smiling curve positioning.

• Main raw materials for control motors (as listed in the company's annual report risk disclosure): magnetic materials (rare earth NdFeB types), bearings, aluminum end caps, wiring harnesses, silicon steel sheets, enameled wire, shafts; core raw materials for drive control products and LED driver products are electronic components (including chips)
• Supplier concentration: In the 2022 annual report, the top five suppliers' procurement amounted to RMB 414.4059 million, accounting for 28.34% of total annual procurement. Among them, Supplier 4 was silicon steel sheets (RMB 38.01 million, 2.58%) and Supplier 5 was chips (RMB 36.75 million, 2.50%), meaning even the single largest raw material supplier accounted for less than 3%, indicating highly dispersed procurement (Source: 2022 Annual Report)
• In the 2024 annual report inquiry letter response, suppliers are also listed by category (enameled wire, stators, etc.), with individual amounts of only a few million RMB, further confirming dispersion
• Raw materials as a proportion of total cost: The IPO prospectus disclosed that the procurement cost of main raw materials as a proportion of total main business cost for 2014–2016 was 46.94%, 38.48%, and 39.77%, respectively (Source: Prospectus Summary). Note: This is old data from 2014–2016; subsequent annual reports have not disclosed the same metric, so it should not be used as a current level
• Pricing power assessment: The company is not a price-maker on the upstream side but a price-taker for copper, aluminum, rare earths, silicon steel sheets, chips, and other commodities/components. Company's own risk statement (H1 2026 report): Since 2025, affected by global geopolitical conflicts and supply chain restructuring, international energy prices and non-ferrous metals (such as copper, aluminum, rare earths, etc.) have remained at elevated levels, compounded by high import dependency for some raw materials, posing challenges to supply chain stability. Countermeasures include centralized procurement, strategic reserves, material substitution, and diversified supply
• Historically, sharp increases in rare earth prices significantly impacted the company's gross margin (explicitly recorded in the prospectus: there were instances of sharp rises in rare earth prices and substantial increases in magnetic material prices, which significantly affected the company's gross margin)
• Controllability highlight on the upstream side: The company independently develops and produces high-precision encoders, high-precision reducers, and high-precision linear lead screws, primarily for its own drive control systems and modules — i.e., partial self-supply of key transmission/feedback components, reducing reliance on external procurement, which is a positive factor of vertical integration in the value chain
• Low and declining customer concentration (structural advantage). In 2025, the top 5 customers combined sales were RMB 379 million, accounting for 13.70% of operating revenue (Source: Chaguwang). Another source shows top five customers at RMB 343.68 million, accounting for 14.23% (Sina Finance annual report full text); other figures across different years include RMB 407.3984 million/15.01%, RMB 500.0973 million/16.89%, and RMB 280.9141 million/13.65% (all from Sina Finance historical announcement database, but year-by-year cross-verification was not possible; recommend using the latest annual report as the authoritative source). A 2018 Huatai research report also cited top five customers at 14.41% (2017), with customer concentration declining year by year
• Overseas side: The top 20 customers accounted for 35.62%, 34.93%, and 35.52% of overseas revenue in 2022–2024, respectively; the company states that the main customer composition is relatively stable with no significant new customers (Source: 2024 Annual Report Inquiry Letter Response). Even the top 20 customers account for only about one-third of overseas revenue, indicating extreme customer dispersion
• Structural bargaining relationship: The industry does not follow the rigid OEM annual price reduction model of auto parts. The company's credit terms are 30–120 days (per inquiry letter response), within the normal range for manufacturing. Downstream customers are global high-end industrial clients (medical/biochemical instruments, semiconductor equipment, PV/lithium battery, robots, smart vehicles) with high certification barriers and switching costs. The company has some bargaining power in high-end customized + system-level solutions, but remains in full competition with price sensitivity for standard stepper motors
• Confirmed known customer leads: Huawei is one of the company's important customers (for enterprise-level products and solutions); subsidiary Yuankong Electronics is a supplier to Mindray Medical; the company's stepper motors can be used in ventilators; overseas subsidiaries AMP/LIN/T Motion have long-term close cooperation with top global medical device and biochemical analysis instrument companies. These customer names are primarily from third-party compilations such as Cailian Press, are single-source and not cross-verified; please refer to the latest annual report/announcements
• Confirmable hard information: The company's customer credit terms are mainly 30–120 days; 2025 net operating cash flow was RMB 219.71 million, a decrease of RMB 26.44 million (-10.74%) year-on-year, which the company explains as increased working capital occupation driven by revenue growth and increased raw material and finished goods reserves in response to market demand. Items not verifiable: precise figures for accounts receivable turnover days and the receivables/net profit ratio; this research did not obtain reliable year-by-year primary data. Note that the 2024 annual report inquiry letter does contain a table showing the 8th customer…2,346.42/30 days/79.24, indicating regulators have previously scrutinized the matching of receivables and revenue. Recommend directly checking the latest annual report's accounts receivable notes to fill in this metric. Conclusive judgment (based on available evidence): The company's dispersed customers + normal credit terms + positive operating cash flow indicate it is not significantly encumbered by any single large customer; however, in 2025, operating cash flow declined despite revenue growth of +14.32%, and inventory increased, indicating rising working capital occupation, consistent with its transition from a component supplier to a system-level solution provider with a higher proportion of project-based orders.
• Low downstream customer concentration (top five customers accounted for 13.70% of operating revenue in 2025, Source: Chaguwang); however, this data is from a single source and not cross-verified, and multiple figures from different year bases (13.65%, 14.23%, 15.01%, 16.89%, 13.70%, from Sina Finance historical announcements and Chaguwang respectively) cannot be precisely matched to specific years; refer to the latest annual report's major customer section for accuracy. On the overseas side, the top 20 customers accounted for 35.62%, 34.93%, and 35.52% of overseas revenue in 2022–2024, respectively (Source: 2024 Annual Report Inquiry Letter Response), indicating extreme customer dispersion. Upstream supplier concentration: Top five suppliers accounted for 28.34% of total procurement in 2022, with the single largest raw material supplier at less than 3% (Source: 2022 Annual Report).

Moons' Electric is a typical mid-stream precision manufacturer with partial upstream self-supply: it is neither an upstream resource/materials player (it can only absorb copper, rare earth, silicon steel sheet, and chip price increases) nor a downstream brand player; its value derives from technical process barriers in precision control motors and drive systems + certification barriers with global high-end customers. On the smiling curve, it occupies an upper-middle position — stepper systems rank top three globally (global revenue exceeding USD 200 million, the only domestic company in the past decade to break the long-term monopoly of Japanese companies), coreless slotless motors are domestically leading and in the global first tier (revenue growth exceeding 40% for two consecutive years). These two product lines give it pricing power beyond ordinary mid-stream processing; while LED lighting drivers, trading agency, and power supply control are low-margin (21%–40%) trailing businesses. The real drivers for continued gross margin improvement (ranked by certainty): ① product mix upgrade — higher proportion of servo, brushless, coreless, and modular/system-level solutions (already effective in H1 2026, with the core control motor business gross margin recovering from 35.00% to 38.52%); ② higher proportion of high-margin overseas revenue (overseas gross margin approximately 48% vs. domestic approximately 26–29%); ③ capacity and scale effects — improved utilization at Vietnam manufacturing base, Moons' Changzhou, Paibosi, and other bases; ④ supply chain cost reduction and self-supplied components (encoders, reducers, lead screws) replacing external procurement. Risk-side drivers: copper/aluminum/rare earth/chip prices, and overseas (especially U.S.) trade policies and tariffs.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the H1 2026 interim report (disclosed on the evening of 2026-08-25). Other H1 2026 data: non-GAAP net profit attributable to shareholders RMB 29.6438 million, +26.87% year-on-year; basic EPS RMB 0.0888, +38.1% year-on-year; consolidated gross margin 37.69%, +2.7 percentage points year-on-year; weighted ROE 1.25% (half-year); debt-to-asset ratio 37.93% (+3.24pct vs. prior quarter, +4.71pct vs. same period last year); net operating cash flow RMB 10.4188 million, -79.39% year-on-year; diluted EPS RMB 0.09; total asset turnover 0.34x; inventory turnover 1.54x. Q2 2026 +24% QoQ; non-GAAP RMB 18.7334 million, +5.23% year-on-year. 2025A non-GAAP net profit attributable to shareholders RMB 52.95 million (-21.40%), EPS 0.1459, gross margin 36.39% (-1.3pct), weighted ROE 2.08%; 2025 net operating cash flow RMB 219.7 million, -10.74% year-on-year; dividend plan RMB 0.25 per 10 shares (tax inclusive), dividend yield approximately 0.04%; R&D investment RMB 269 million, 9.73% of revenue. 2023A EPS 0.3353, weighted ROE 5.05%; 2024A EPS 0.1860, weighted ROE 2.70%. Data sources: Jiemian News, National Business Daily, Securities Star, East Money performance reports, company interim and annual report MD&A. Quarterly breakdown data cross-checked from East Money performance report pages and the above sources; figures reconcile.

H1 2026 revenue grew steadily (+19.21%), with profit growth even higher (attributable net profit +38.01%), and gross margin up 2.7 percentage points year-on-year to 37.69%. However, on a quarterly basis, Q2 attributable growth (+18.31%) was significantly lower than Q1 (+92.19%), and Q2 non-GAAP growth was only +5.23%. Q2 profit momentum was weaker than revenue momentum, and sustainability warrants attention. By business structure, Control Motors and Drive Systems revenue was RMB 1.381 billion (+26%, 88.15% of total, gross margin 38.52%), as the main contributor; trading RMB 98 million, power supply and lighting control systems RMB 75 million, equipment condition management RMB 12 million; domestic RMB 885 million (+22%), overseas RMB 682 million (+16%); Vietnam plant H1 revenue RMB 84.94 million, +43% year-on-year, already profitable. On a historical annual basis, both revenue and profit declined for two consecutive years in 2023 and 2024; revenue recovered in 2025 (+14.32%) but net profit attributable to shareholders still fell 21.54%. The company explains this as increased R&D and marketing expenses, raw material price fluctuations and product mix changes pressuring gross margin with lagged cost transmission, new businesses in investment/introduction phase, and goodwill impairment provisions. The 2025 dividend corresponds to a dividend yield of approximately 0.04%, which is extremely low. Operating cash flow in H1 2026 fell sharply by 79.39% year-on-year, due to increased working capital occupation.

3.2 Earnings Forecast

Source: East Money F10 earnings forecast page (trailing six-month average, 3 institutions, snapshot around 2026-08/09). Other forecast data: operating profit 2026E RMB 105 million/2027E RMB 145 million/2028E RMB 206 million; ROE 2026E 3.71%/2027E 4.80%/2028E 6.28%; net assets per share 2026E RMB 7.18/2027E RMB 7.48/2028E RMB 7.96 (only 1 institution); implied revenue growth 26E +14.18%, 27E +15.64%, 28E +16.70%. Individual institutions: Guosheng Securities (2026-08-28, Buy) EPS 2026E 0.26/2027E 0.37/2028E 0.58 (implying 2028 attributable net profit of approximately RMB 240 million, the most optimistic); Huayuan Securities (2026-06-01, Overweight, initiation) net profit attributable 2026-2028E = RMB 108/150/204 million, +77.26%/+38.79%/+35.72% year-on-year, EPS 0.26/0.36/0.49, report-date closing price RMB 62.51 corresponding to P/E 237/171/126x; third institution unnamed (reverse-implied EPS approximately 0.29/0.36/0.44, an estimated value for reference only). Earlier and now outdated forecasts: Huaan Securities 2025-11-23 Buy (2025-2027 attributable net profit RMB 84/108/151 million), Qunyi Securities 2025-02-25 Overweight (target price RMB 98.00, 2024-2026 net profit RMB 80/150/220 million), Guotou Securities 2025-03-07 (2025/2026 net profit RMB 61/230 million). Key uncertainties: very few covering institutions (3 per East Money, only 2 per Investing.com), weak representativeness of consensus; 2026E attributable net profit range approximately RMB 108-123 million, 2028E range RMB 194-243 million, with large dispersion; East Money's two mirror pages show inconsistent institution counts and averages (type=web shows 3 institutions, 2026E EPS 0.27; type=soft shows 2 institutions, 2026E EPS 0.2750), due to different cache timestamps; third-party site zonebourse gives 2026E net profit RMB 166.1 million, 2027E RMB 327.2 million, 2028E RMB 361.6 million, vastly different from domestic brokerage figures; not recommended as consensus. Guosheng (8/28) already incorporates interim report information; Huayuan (6/1) does not.

3.3 Valuation Level and Institutional Ratings

As of the 2026-09-11 close, the latest closing price was RMB 47.41 (-0.15%), with open at 47.08, previous close at 47.48, high at 47.77, and low at 45.73; total share capital/float share capital 419 million shares (fully circulating); total market cap/float market cap RMB 19.859 billion (SSE basis 1,985,921.93; the field value in the notes is incomplete, and the exact unit and full figure are uncertain). Rating statistics (East Money F10): composite rating over 1 year is Buy (rating coefficient 4.80, 4 Buy + 1 Overweight, 5 total); over 6 months 4.67 (2 Buy + 1 Overweight, 3 total); over 1 month only 1 Buy. Target price summary (large basis differences; use with caution): Baidu Stock average target price RMB 55.50, high RMB 70.00, low RMB 41.00; Investing.com (past 3 months, 2 analysts) average RMB 54.80 (implying approximately +16.6% upside), high RMB 70, low RMB 39.6, consensus rating Neutral (1 Buy/1 Hold/1 Sell). Target price averages/consensus are based on only 2-3 analysts, with a very small sample and uneven timeliness (including old reports from 2025), lacking statistical significance as market consensus and serving only as directional reference; the range between the highest target price of RMB 70 and the lowest of RMB 39.6-41 spans nearly 80%, indicating extreme divergence. Huayuan Securities' report-date closing price of RMB 62.51 corresponds to 2026-2028E P/E of 237/171/126x; it selected Keliang Technology, Leaderdrive, and Siling Smart Drive as comparable companies, with average 2026-2028E P/E of 186/136/113x. CICC's 2026-05-19 target price of RMB 40.98 is below the current closing price of RMB 47.41, indicating significant valuation divergence. The 2025 dividend of RMB 0.25 per 10 shares corresponds to a dividend yield of approximately 0.04%, which is extremely low.

4. Recent News and Announcements

4.1 Notice of Convening the Second Extraordinary Shareholders' Meeting of 2026 (Announcement No. 2026-028)

Disclosure date: 2026-08-25/26. Meeting time: 2026-09-24 at 14:30, at Mehood Lestie Hotel, Building 1, No. 88 Lane 1, Minbei Road, Minhang District, Shanghai; record date: 2026-09-17; online voting code: 752728. All 9 proposals are governance system amendments: amendments to the "Articles of Association," "Rules of Procedure for Shareholders' Meetings," "Rules of Procedure for Board Meetings," "Independent Director Working System," "Major Investment and Transaction Decision-Making System," "External Guarantee Management System," "Related-Party Transaction Decision-Making System," "Measures for Preventing Major Shareholders and Related Parties from Occupying Company Funds," and "Measures for Management of Raised Funds." Among them, Proposal 1 (amendment to the "Articles of Association") is a special resolution proposal. All proposals are counted separately for minority investors; no related-party shareholder recusal matters. The above proposals have all been approved by the 11th meeting of the 5th Board of Directors (2026-08-25). No resolution announcement for the 2026-09-24 shareholders' meeting was found in the research, so whether all 9 proposals were passed cannot be confirmed. Sources: CFI.cn, Securities Star, 10jqka, East Money.

4.2 H1 2026 Interim Report

Disclosure date: 2026-08-26. Operating revenue RMB 1,567,134,600 (approximately RMB 1.567 billion), +19% year-on-year, +8% quarter-on-quarter; of which Q1 revenue RMB 700.40 million, Q2 revenue RMB 866.73 million (+21% year-on-year, +24% quarter-on-quarter). Net profit attributable to shareholders RMB 37.2007 million, +38.01% year-on-year; non-GAAP net profit attributable to shareholders RMB 29.6438 million, +approximately 27% year-on-year; basic EPS RMB 0.0888. Consolidated gross margin 37.7%, +2.7 percentage points year-on-year. Net operating cash flow RMB 10.42 million, -79% year-on-year (company explains as increased working capital occupation driven by business scale expansion). By product: Control Motors and Drive Systems revenue RMB 1.381 billion, 88.15% of total, gross margin 38.52%; domestic revenue RMB 884.9 million (+22%), overseas RMB 682.2 million (+16%). Vietnam plant H1 revenue RMB 84.94 million, +43% year-on-year, with improved capacity utilization and profitability. Long-term equity investments in 16 companies, totaling RMB 1.421 billion (as of 2026-06-30). Note: The income statement "net profit" basis differs from "net profit attributable to shareholders" (H1 2026 total net profit RMB 37.6685 million vs. attributable RMB 37.2007 million); use the attributable figure when citing. Sources: East Money, Securities Star, CFI.cn, Sina announcement database.

4.3 2025 Annual Equity Distribution Implementation Announcement

Disclosure date: 2026-06-11/12. 2025 distribution: RMB 0.25 per 10 shares (tax inclusive, RMB 0.225 after tax); record date 2026-06-17, ex-dividend date 2026-06-18, dividend payment date 2026-06-18. Total cash dividend RMB 10,472,062.50 (tax inclusive); no capitalization of reserves or bonus shares (corresponding to total share capital of approximately 419 million shares). Reference: 2024 was RMB 0.24 per 10 shares; 2023 was RMB 0.40 per 10 shares; 2022 was RMB 0.70 per 10 shares — dividend levels have remained low and declined year by year in recent years. Sources: CFI.cn full announcement text, East Money stock calendar, Hong Kong dividend page.

4.4 2025 Annual Shareholders' Meeting Resolution Announcement and Lawyer's Legal Opinion

Disclosure date: 2026-05-22/23; meeting date 2026-05-22. Sources: CFI.cn full announcement text, East Money stock calendar.

4.5 2025 Annual Report and Accompanying Announcements

Disclosure date: 2026-04-24/25. Full year 2025: operating revenue RMB 2,761,977,800 (RMB 2.762 billion), +14.32% year-on-year; net profit attributable to shareholders RMB 61.1280 million, -21.54% year-on-year; non-GAAP net profit attributable to shareholders RMB 52.95 million, -21.40% year-on-year; basic EPS RMB 0.1459; full-year average gross margin 36.4%, -1.3pct year-on-year; net operating cash flow RMB 219.71 million, -10.74% year-on-year. Company-cited reasons for profit decline (four items): increased R&D and marketing expenses; raw material price fluctuations and product mix changes pressuring gross margin with lagged cost transmission; newly expanded businesses (core components for high-density data center cooling systems, precision transmission components, etc.) in investment/introduction phase; goodwill impairment test and provision recognized on a prudent basis (non-recurring factor). The specific goodwill impairment amount was not quantified in the materials retrieved; need to check the annual report's "asset impairment losses" notes for verification. Same-day/recent accompanying announcements: 2025 profit distribution plan, re-appointment of Zhonghua Certified Public Accountants (Special General Partnership) as 2025 auditor (re-appointment announcement date 2026-04-24), Board Audit Committee report on auditor performance evaluation, independent director independence special opinion, 5th Board of Directors 9th meeting resolutions. 2025 annual report audit report disclosure: as of 2025-12-31, signed engineering/equipment installation contracts with pending payments of RMB 324 million; no contingent matters requiring disclosure. Sources: Sina announcement database, Securities Star, CFI.cn.

4.6 Q1 2026 Report

Disclosure date: 2026-04-27/28. Q1 operating revenue RMB 700,402,100, +17.65% year-on-year; net profit attributable to shareholders RMB 13.8171 million, +92.19% year-on-year; basic EPS RMB 0.033; gross margin 37.02%. Same-day disclosure of Q1 2026 report and shareholder count. Sources: East Money performance details, CFI.cn profit distribution table.

4.7 Supplementary Announcement on 2026 Annual Routine Related-Party Transactions

Disclosure date: 2026-04-28/29. Involves transactions with Shanghai Moons' Electrical Appliance Co., Ltd. and its controlled subsidiaries (sister company) for sales of goods, purchases of goods, leasing, etc. (East Money calendar shows disclosure basis of RMB 13.80 million/plus multiple other items; the 2026-04-25 annual report basis shows 5 items totaling RMB 48.24 million; the two figures are inconsistent, representing "newly estimated" vs. "actually incurred" classification differences; verify against the original announcement); with J&C Management Group LLC RMB 260,000, Immobiliare Italiana SRL RMB 150,000 (other transactions, leasing), with the actual controller and other related persons RMB 420,000 (leasing). Sources: East Money stock calendar, CFI.cn full announcement page.

4.8 Announcements Related to the First Extraordinary Shareholders' Meeting of 2026

Disclosure date: 2026-02 (early to late month). Disclosed 2026-02-07: 5th Board of Directors 8th meeting resolution announcement, announcement on providing guarantees for wholly-owned subsidiaries, announcement on providing guarantees for comprehensive credit facilities applied for by wholly-owned subsidiaries, announcement on amending the "Foreign Exchange Derivatives Trading Business Management System" (and the full text of the February 2026 revised system), notice of convening the first extraordinary shareholders' meeting of 2026 and meeting materials. Disclosed 2026-02-28 (document date basis): first extraordinary shareholders' meeting of 2026 resolution announcement + lawyer's legal opinion. Interpretation: The amendment to the foreign exchange derivatives system relates to managing foreign exchange exposure given the company's overseas revenue share of approximately 45% (this is a company behavior interpretation, not the original announcement wording). Source: CFI.cn full announcement text.

4.9 Shareholder and Equity Structure Dynamics

Number of shareholders (East Money stock calendar): 45,856 as of 2025-03-31; 54,554 as of 2025-06-30 (+8,698); 63,339 as of 2025-09-30 (+8,785); 60,834 as of 2026-03-31 (-1,014); 57,325 as of 2026-06-30 (-3,509). Top ten shareholders as of Q1 2025 report (as of 2025-03-31): Shanghai Moons' Investment Management Co., Ltd. 235,560,000 shares (domestic non-state-owned legal person), New Eternal Company 20,944,125 shares (overseas legal person), Liu Jinping 11,005,000 shares, Gao Lüquan 6,682,801 shares, Hong Kong Securities Clearing Company Limited 5,187,626 shares, Shanghai Kaikang Investment Management Co., Ltd., etc.; total number of common shareholders at period end 45,856. No announcements of increases/decreases by controlling shareholders or directors/supervisors/senior management in 2026 were found, nor were equity pledge/freeze disclosures found (all top ten shareholders' pledge markers in Q1 2025 were "None"); this does not mean they do not exist, only that this research did not find them. Sources: CNINFO Q1 2025 report, East Money stock calendar.

4.10 Institutional Research and Investor Relations

Disclosed 2025-11-05: hosted 1 institutional research visit on 2025-11-04; disclosed 2025-09-06: hosted 1 institutional research visit on 2025-09-05; disclosed 2025-05-09: hosted 1 institutional research visit on 2025-05-08; also multiple "online earnings briefing session" announcements (2025-11-05 after Q3 2025 report, 2025-09-06 after H1 2025 report). In 2026 (as of the research cutoff), no new institutional research visits or earnings briefings were found; note that disclosure may be delayed. Source: East Money stock calendar.

4.11 Items "Not Found" in This Research

1. Share buybacks: No buyback plans, progress, or cancellation announcements were found (including 2025 and 2026). 2. Earnings previews/flash reports: No Q3 2026 earnings preview was found, nor were 2025 annual or H1 2026 earnings previews/flash reports found (the company historically appears not to have disclosed previews, only publishing through periodic reports). 3. M&A/restructuring: No new acquisition/asset restructuring announcements in 2026; historically identifiable acquisitions are U.S.-based AMP, Switzerland-based T Motion, and U.S.-based LIN, none of which are current-period events. 4. Regulatory/penalties/inquiries: No exchange inquiry letters, regulatory letters, investigations, or administrative penalty announcements were found. 5. Main capital flows (daily/recent net inflows/outflows): This research did not obtain reliable main capital flow data (East Money capital flow pages are JS-rendered, and WebFetch tends to return empty values).

4.12 Periodic Reports and Timestamp Notes

The latest visible time anchors in this research are: the H1 2026 interim report (disclosed 2026-08-26) and the second extraordinary shareholders' meeting of 2026 (meeting date 2026-09-24). Based on this, the research cutoff is estimated to be around late September to early October 2026. No resolution announcement for the 2026-09-24 shareholders' meeting was found, so whether all 9 proposals were passed cannot be confirmed (only the meeting notice and meeting materials from 2026-08-25/26 were seen). No Q3 2026 report was found (historical disclosure rhythm is end of October, e.g., Q3 2025 report disclosed on 2025-10-29), so there is no Q3 data for this period. The latest periodic report above is the H1 2026 interim report (2026-08-26); the Q3 2026 report has not yet been disclosed; the 2026-09-24 shareholders' meeting resolution results were not confirmed within the research scope.

4.13 Low-Confidence and Items Pending Verification

2025 goodwill impairment amount: Only textual description of "impairment provision recognized" was found (MD&A reproduced by Securities Star), with no amount. Single source, cannot be cross-verified. Related-party transaction basis differences: The 2026-04-25 basis "Shanghai Moons' Electrical Appliance and its controlled subsidiaries 5 items totaling RMB 48.24 million" and the 2026-04-29 supplementary announcement basis "4 items totaling RMB 13.80 million" appear side by side on the same East Money stock calendar page; it cannot be confirmed whether this is a difference between "estimated quota" and "actually incurred"; recommend referring to the original CFI.cn/SSE announcement. The Vietnam plant "production transfer/capacity ramp-up" progress description comes from the 2025 annual report's "2026 Operating Plan" chapter (forward-looking planning, not established fact), and represents the company's planning basis.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of the September 11, 2026 close, Moons' Electric closed at RMB 47.41, down marginally 0.15%, with a turnover rate of 1.40% and volume ratio of 0.70, indicating clear volume shrinkage. The stock price hit the daily limit on September 3 and surged to RMB 53.35 (September 4 intraday high of RMB 54.34) before rapidly retracing, with three consecutive declines from September 8 to 10. On September 11, it dipped to RMB 45.73 intraday before closing with a long lower shadow. The closing price is only approximately +5.9% above the 52-week low of RMB 44.78 and approximately -46% below the 52-week high of RMB 88.00. This week (9/7–9/11) it declined 5.43% cumulatively, with main capital net outflow totaling RMB 24.8873 million; after a single-day net inflow of approximately RMB 199 million on September 3, capital has consistently shown net outflows thereafter. The current price of RMB 47.41 is approximately 3.3% below MA5 (≈RMB 49.01), with the short-term moving average acting as resistance. It should be particularly noted that this research could not obtain current specific values for MA10, MA20, MACD, RSI6, and Bollinger Bands, as technical indicator pages were truncated by tool call limits. Therefore, this section does not provide "specific figures" for the above indicators, only "positional" descriptions based on verified price facts — the roughly 20-day fluctuation range is framed by RMB 44.78 (52-week low) and RMB 54.34 (9/4 intraday high), with recent high-volume price zones at RMB 49.9–51.3 and RMB 47.4–48.9. On valuation, the dynamic P/E is 266.92x, TTM P/E 278.24x, and static P/E 324.88x; differences across bases are due to different calculation methodologies. Cross-verified against H1 2026 net profit data, the approximately 280x P/E is a genuine high-valuation state (extremely low earnings base combined with humanoid robot thematic premium), not a data error. Overall, the stock is in a weak consolidation pattern of "rapid retracement after high-level limit-up, shrinking volume testing prior low zone," with short-term direction highly dependent on whether volume can recover and the effectiveness of support in the prior low zone.

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

⚠️ Risk Warning: The following content is purely subjective scenario analysis based on September 11, 2026 closing data and historical price and capital flow facts. The scenario weights are subjective empirical judgments, not statistical probabilities. This does not constitute any investment advice. Please independently judge based on the latest market information and bear investment risks yourself.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Consolidation (range RMB 47.4–49.9) (relatively higher weight, approximately 50–60% (subjective empirical weight, not statistical probability)): Trigger conditions: volume maintains current shrinking levels (turnover around RMB 200 million), no new catalysts or negative news, stock oscillates between the RMB 47.4–48.9 closing high-volume zone and the upper RMB 49.9–51.3 high-volume zone. Manifestation: prior low zone receives initial support but rebound lacks strength; MA5 (≈RMB 49.01) declines to form short-term resistance.
• Bearish Downside (testing RMB 45.73, extreme case testing RMB 44.78) (moderate weight (subjective empirical weight, not statistical probability)): Trigger conditions: overall weakness in the motor/robot thematic sector, continued main capital net outflows, or further volume contraction below RMB 150 million with a break below the first support at RMB 47.4. If the 9/11 intraday low of RMB 45.73 is effectively breached, the next observation level points to the 52-week low of RMB 44.78; a breach of that level would open space for extension to lower ranges.
• Rebound Strength (recovering the RMB 49.9–51.3 range) (lower weight (subjective empirical weight, not statistical probability)): Trigger conditions: clear catalysts or capital return in humanoid robot/reducer thematic sectors, with a significant single-day volume expansion (refer to volume confirmation signal below); stock recovers RMB 49.9 with volume and holds, with upside targeting RMB 52.24 (9/7 intraday high) and the RMB 53.35 area. If it only rebounds on shrinking volume to around RMB 49–50 without volume expansion, it may still be classified as consolidation rather than strength.

③ Capital and Liquidity Background

Turnover rate and turnover (verified, as of 2026-09-11 close): 9/11 turnover rate 1.40%, turnover RMB 274 million; 9/10 turnover rate 0.97%, turnover RMB 195 million; 9/9 turnover rate 1.17%, turnover RMB 240 million (9/9–9/11 turnover rate and 9/11 turnover data are fully given in the research notes; 9/10 and 9/9 turnover amounts are given). This week's peak turnover occurred on 9/4 (approximately RMB 804 million) and 9/7 (RMB 515 million), followed by significant volume contraction; volume ratio of 0.70 also confirms the shrinking volume characteristic. Shareholder concentration (data as of 2026-06-30, announcement date 2026-08-26, lagging approximately 2.5 months; structure may have changed during this period): Top ten circulating shareholders collectively hold approximately 70.0%, of which controlling shareholder Shanghai Moons' Investment Management Co., Ltd. holds 56.24%, and the controlling shareholder and related parties (Moons' Investment + Shanghai Kaikang Investment) collectively hold approximately 57.4%; institutional composition is primarily index-type public funds (E Fund CSI Robot Industry ETF 1.52%, China AMC CSI Robot ETF 0.74%, both reduced holdings during the reporting period), plus 1 insurance portfolio seat (China Pacific Life Insurance - Dividend - Individual Dividend 0.79%) and 1 northbound seat (Hong Kong Securities Clearing Company Limited 1.12%, increased holdings during the reporting period); no significant presence of social security funds or QFII (other than "Jinbaode Industrial (Hong Kong)" which has a Hong Kong platform nature). Public funds + insurance + northbound collectively account for approximately 4.5% (of total share capital basis); institutional holdings are not substantial, and robot-themed ETFs were net sellers in Q2. The high concentration of approximately 57.4% held by the controlling shareholder and related parties means the actual free float is relatively limited. Roughly estimating from the top ten total of 70%, the free float accounts for approximately 30% of total share capital (approximately 126 million shares, corresponding to approximately RMB 6.0 billion market cap at the 9/11 close; this is an estimated value based on disclosure basis, not official free float market cap data, and whether some shareholders are subject to long-term lock-up cannot be confirmed, so deviation may be significant). Note: The number of shareholders is 57,300 (as of 2026-06-30, -5.77% vs. prior period), with average circulating shares per shareholder of 7,307 (+6.12%); declining shareholder count combined with rising per-capita holdings typically corresponds to share concentration; however, this data also lags the current point in time. At the practical level, the combination of low turnover (around 1%) + high controlling shareholder concentration means relatively thin order book depth and potentially wider slippage for large trades, which should be factored into scenario analysis. On margin trading, the 2026-08-20 margin balance was RMB 307 million, 1.56% of float market cap, below the 10th percentile over the past year (dated; for reference only).

Volume confirmation signal: The stock's turnover over the past three trading days (9/9–9/11) ranged approximately RMB 195–274 million. If subsequent single-day turnover consistently expands above RMB 400 million (referencing this week's peak levels of approximately RMB 804 million on 9/4 and RMB 515 million on 9/7), this can be viewed as an observational signal of capital re-entry; conversely, if turnover consistently stays below RMB 200 million, the shrinking-volume consolidation pattern continues. This signal is an observational reference, not a buy/sell instruction.

④ Key Points to Watch (Observational Ideas Only, Not Trading Instructions)

• Watch the support strength at the RMB 47.4–48.9 first support zone: if it holds on shrinking volume with a long lower shadow, the consolidation scenario has higher weight; if it breaks on expanding volume, watch whether the strong support zone (RMB 44.78–45.73) formed by the lower RMB 45.73 and the 52-week low of RMB 44.78 holds; a breach of this zone would open downside space.
• Watch the resistance from the upper RMB 49.9–51.3 high-volume zone and MA5 (≈RMB 49.01): only a volume-confirmed hold above this range would signal the start of the rebound strength scenario; further upside focus on RMB 52.24 (9/7 intraday high) and the RMB 53.35–54.34 retracement zone.
• Watch volume changes: use whether single-day turnover can consistently expand above RMB 400 million as a verification signal for capital entry; below RMB 200 million indicates continued shrinking-volume consolidation; volume is the key variable distinguishing consolidation from rebound scenarios.
• Watch external environment: capital flows in the motor/humanoid robot thematic sector, overall market trends, and whether the shareholder structure as of 2026-06-30 (robot-themed ETF selling direction, northbound buying) changes going forward (this data lags approximately 2.5 months; needs updating with latest disclosures). All of the above are observational ideas, not trading instructions.

The above scenario analysis is based on September 11, 2026 closing data and historical price and technical indicator calculations. Short-term stock prices are subject to multiple factors including news, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future trends, and do not constitute buy/sell recommendations. Please independently judge based on the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The company operates in the broad industrial automation motion control core components market (motors + drives + controls + modules), with downstream applications in semiconductor equipment, lithium battery equipment, PV equipment, 3C non-standard automation, medical and biochemical analysis instruments, robots (including humanoid robots), smart vehicles, data center liquid cooling, security, textiles, and 3D printing. The key characteristic is that this is not a unified market; competition must be understood on a product-line basis — stepper motors follow a stock substitution logic (global market growth is modest, but the company continues to gain share from Japanese manufacturers through cost-performance + global service), coreless motors and robot joint modules follow an options logic (Optimus dexterous hand degrees of freedom increase with each generation, technology routes have not converged, representing expectations rather than actual revenue), and servo systems follow a catching-up logic (still trailing domestic leaders such as Inovance). Industry size references (third-party): The global stepper motor market is projected to reach USD 1.30 billion by 2029, with a 2024–2029 CAGR of 3.08% (Mordor Intelligence); the actuator market for automation applications was approximately USD 7.8 billion in 2025 (Coherent Market Insights).

6.2 Competitive Landscape

• Stepper systems (including stepper motors/drives/stepper servo/linear steppers): Company self-description + brokerage positioning as global top three, global revenue >USD 200 million, the only domestic company in the past decade to break the Japanese monopoly; international competitors are Japan's MinebeaMitsumi, Nidec, Oriental Motor, Shinano Kenshi, and Sanyo Denki; in linear steppers, the competitor is Haydon (Haydon Linear, mentioned in the 2024 annual report inquiry letter response as having a direct competitive relationship with the company in the linear stepper motor business); domestic competitors are Leadshine Technology, Shenzhen Zhongweixing, etc. Stepper motors are Moons' ballast, following a stock substitution logic
• Coreless/slotless motors: Domestically leading, global first tier, performance benchmarked against international brands with better cost-performance, revenue growth >40% for two consecutive years; DC brushless motors have injection-molded integrated patent; international competitors are Switzerland's Maxon, Germany's Faulhaber, and Portescap; domestic micro motor manufacturers are generally small in scale. In 2025, revenue from robot applications grew 22% year-on-year, and high power density brushless slotless motors grew 200% year-on-year. Coreless motors and robot joint modules follow an options logic
• AC servo/motion control systems: Next-generation M5 servo drives, MCX motion controllers, and MCA mid-size PLCs hold mainstream domestic positions, accelerating toward the first tier; international competitors are Yaskawa, Panasonic, Mitsubishi, Siemens, and Beckhoff; domestic leader is Inovance, plus Hechuan Technology and Leadshine Technology. Positioned as a gap-filler and follower
• Mechatronic modules/joint modules (humanoid robots): Has sent samples to and received batch orders from over a hundred domestic and international humanoid robot and dexterous hand component manufacturers, covering a full-stack platform of motors + drives + transmission + feedback; competitors include Leaderdrive (harmonic reducers), Zhaowei Machinery (micro transmission/dexterous hands), Siling Smart Drive, and Keliang Technology
• LED intelligent lighting control and drives: Avoids homogeneous basic lighting, focuses on intelligent dimming/high-power stadium/explosion-proof specialty lighting, with technology at the forefront of the domestic industry and global service capabilities; competitors include Inventronics, Moso Power, etc.
• Brokerage-identified comparable companies: Huayuan Securities' June 2026 initiation report selected Keliang Technology, Leaderdrive, and Siling Smart Drive as comparable companies. This is a single brokerage's selection, not equivalent to full-market consensus

6.3 Main Competitors

Moons' Electric's differentiation among domestic motion control manufacturers is its highest degree of globalization: overseas revenue share of 45%, over 30 overseas subsidiaries, and three acquired European/American technology companies (U.S.-based AMP, U.S.-based LIN, Switzerland-based T Motion) — capabilities that domestic competitors such as Leadshine Technology and Keliang Technology clearly lack; the cost is a high expense ratio that drags net margin down to 2%–3%. By product line, stepper motors are the ballast (global top three, substituting Japanese share), coreless motors and robot joint modules are options (technology routes have not converged, representing expectations rather than actual revenue; the RMB 10 billion-scale dexterous hand motor market space estimated by a single brokerage is not industry consensus), and servo systems are gap-filling (catching up to domestic leaders such as Inovance).

7. Risk Warnings

• Raw material cost and cost transmission risk: The company uses magnetic materials, bearings, aluminum end caps, silicon steel sheets, enameled wire, chips, and other raw materials. Price increases in copper, aluminum, rare earths, and electronic components could directly compress gross margin; historically, sharp increases in rare earth prices significantly impacted the company's gross margin, and the company itself states there is a time lag in passing costs to customers.
• Earnings quality and cash flow risk: H1 2026 net operating cash flow was RMB 10.4188 million, down 79.39% year-on-year; in 2025, operating cash flow declined 10.74% year-on-year despite revenue growth of 14.32%. The company explains this as related to business expansion and increased raw material and finished goods reserves. If working capital occupation continues to rise, revenue growth may be difficult to convert into cash flow proportionally.
• Expense investment and goodwill impairment risk: In 2025, period expenses including R&D and marketing increased, new businesses remain in investment and market introduction phases, and goodwill impairment provisions were recognized. If overseas operations, servo systems, liquid cooling core components, or precision transmission businesses fail to achieve sufficient scale, higher investments may continue to pressure net margin, and the goodwill impairment amount and impact still need further verification against relevant notes.
• Robot business realization risk: Coreless motors, dexterous hands, and robot joint modules currently represent medium- to long-term growth and option directions; technology routes have not converged. Although the company has sent samples to and received batch orders from domestic and international humanoid robot and dexterous hand manufacturers, related expectations cannot yet be equated with sustained, scaled revenue. If downstream customer introduction progress, product design wins, or batch deliveries fall short of expectations, the robot thematic premium could decline.
• Overseas operations and trade policy risk: The company's overseas revenue accounts for approximately 45%, and it operates through overseas subsidiaries in the U.S., Switzerland, etc., and a Vietnam base. The company has flagged uncertainties in the international trade environment, tariffs, and supply chain restructuring. Overseas policy changes, exchange rate fluctuations, or cross-border supply chain disruptions could affect orders, costs, capacity arrangements, and profitability.
• Valuation and stock price volatility risk: As of September 11, 2026, the company's TTM P/E is approximately 278x and dynamic P/E approximately 267x, significantly above current earnings levels. Institutional earnings forecast coverage is limited, and target price ranges diverge widely. The stock price recently retraced rapidly after a limit-up, falling 5.43% for the week, and is below MA5; if earnings recovery or robot-related expectations fall short of market pricing, the stock price could experience significant volatility.
• Intensifying competition in the core business risk: Stepper systems face competition from MinebeaMitsumi, Nidec, Oriental Motor, Shinano Kenshi, Sanyo Denki, and domestic players such as Leadshine Technology. Servo and motion control systems remain in the catching-up phase relative to domestic leaders such as Inovance, and standardized stepper products are price-sensitive. If competitors cut prices, technology iterates, or customer certification progress is unfavorable, the company's market share and bargaining power could weaken.
• Low dividend return risk: The company's 2025 annual dividend was RMB 0.25 per 10 shares, corresponding to a dividend yield of approximately 0.04% based on relevant data, with dividend levels persistently low in recent years. Given the current low earnings base and high valuation, cash dividends provide limited support for shareholder returns.

8. Conclusion and Outlook

The company's current growth logic primarily comes from market share gains in control motors and drive systems, improved profitability at overseas bases, and product mix upgrades in servo, coreless motors, precision transmission, and robot modules. In H1 2026, the core control motor business saw simultaneous revenue and gross margin improvement, with both domestic and overseas revenue growing. If new product introduction, the Vietnam base, and other overseas capacity continue to ramp up, product mix and scale effects are expected to drive further profitability recovery.

However, the company has not yet fully demonstrated that growth can be stably converted into net profit and cash flow. In 2025, increased expenses, raw material price fluctuations, lagged cost transmission, new business investments, and goodwill impairment collectively suppressed profits; in H1 2026, operating cash flow continued to decline significantly, and Q2 non-GAAP profit growth was weaker than revenue growth. Market forecasts