Huachuang Securities: Fiyta Deep Dive: Watch Business Bottoming, Manufacturing Re-Rating
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Abstract
Huachuang Securities initiates coverage of Fiyta (000026 CH) with a 'Recommend' rating, arguing the company sits at the intersection of a bottoming watch cycle and a strategic pivot into precision manufacturing. With new management in place and the Changkong Gear acquisition completed, the business mix is shifting from domestic watches and luxury watch retail toward a precision-manufacturing platform spanning structural parts, precision transmission components and reducers. H1 2026 results already show stabilization, with net profit attributable to shareholders up 21.9% year on year. The luxury watch full-service business remains the revenue anchor, contributing 75.89% of 2025 revenue. The Changkong Gear deal—RMB 325 million in cash, roughly 8x 2025 earnings—extends the company into precision gears and reducers, positioning it for humanoid robotics and commercial aerospace; Fiyta's ultimate controller is AVIC, providing a basis for industrial synergies. Huachuang forecasts 2026–2028 net profit of RMB 188 million, RMB 237 million and RMB 282 million, on revenue of RMB 4.11 billion, RMB 4.43 billion and RMB 4.72 billion, implying 38x, 30x and 26x PE.
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