Huizhou Desay SV Automotive (002920.SZ): 3Q Briefing: Cost Inflation Persists, Robotics Nominations Gain Traction

We joined 3Q analyst briefing; key takeaways: (1) the QoQ decline in GPM was due to broad raw material inflation (incl. PCB, MLCC and metal hardware) and pass-through timing mismatch, though memory cost recovery contracts were signed with most OEMs and the company still needs to absorb a portion; (2) the company has won nominations for robotics domain controllers from AgiBot, UBTech and others, covering most of the top-15 robot companies, with scale production targeted from 4Q (AgiBot likely first) and management guiding 26E robotics revenue above Rmb100mn and several hundred million in 2027E; (3) entering 4Q, management believes kit-rate remains the swing factor for revenue, with tight supply and cost inflation pressure expected to persist. 3Q growth was led by smart-driving domain controllers, helped by projects deferred from 2Q and several large programs reaching SOP;