Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The automotive sector is experiencing a significant shift with the introduction of Tesla's Robotaxi strategy, focusing on a dual-seat Cybercab to address 90% of travel scenarios [5][13] - Tesla has disclosed that approximately 1.1 million Full Self-Driving (FSD) paid users account for about 12% of its total vehicle sales, with a year-on-year growth of 38% [14] - The Shanghai government has introduced a subsidy for replacing old vehicles with new energy vehicles, offering an 8% subsidy on the purchase price, capped at 15,000 yuan [14] - The National Energy Administration plans to establish 28 million charging facilities by the end of 2027, expected to drive over 200 billion yuan in investments [15] - The global humanoid robot shipment is projected to increase by 508% in 2025, with Chinese manufacturers leading the market [20][22] Market Performance - The automotive sector underperformed the market, with the A-share automotive index declining by 4.67%, ranking 29th among primary industries [6][25] - The passenger vehicle index fell by 1.84%, while the commercial vehicle index decreased by 1.21% [6] - The automotive parts index saw a decline of 6.82%, with various segments experiencing different levels of performance [6] Investment Recommendations - For passenger vehicles, there is an unexpected demand in the domestic high-end luxury market, with recommendations for Jianghuai Automobile and Seres, while Geely Automobile is identified as a beneficiary [7] - In the automotive parts sector, profitability is expected to improve, with recommendations for Desay SV, Zhejiang Xiantong, Meili Technology, and others, while Weichai Power and others are seen as beneficiaries [7]

Summary of Conference Call Notes Industry Overview Humanoid Robot and EV Supply Chain - The conference focused on the China humanoid robot and EV supply chain sector, with meetings held from January 19-22, 2026, involving various companies in the robotics and automotive sectors [1] - Major component suppliers are preparing for the debut of Tesla's Optimus Gen 3 in the first half of 2026, with batch shipments expected in the second half of 2026 [1] - Suppliers for Unitree's humanoid robot anticipate significant year-over-year shipment growth in 2026, leading to over 100% growth in humanoid robot-related sales [1] - Key component manufacturers are increasing production capacity and expect cost reductions through mass production and product standardization [1] Auto/EV OEMs & Supply Chain Sales Trends and Cost Pressures - Weak auto and EV sales trends are continuing into January 2026, attributed to cuts in EV purchase tax subsidies and incomplete trade-in subsidies [2] - Chery plans to launch new models post-Lunar New Year in February 2026 [2] - BOM (bill of materials) costs for EV models are estimated to increase by approximately RMB4,500-5,000 due to rising prices of lithium carbonate, memory, copper, and aluminum [2] - Seyond expects price reductions in LiDAR, which may alleviate some cost pressures for OEMs [2] Battery Sector Growth and Cost Management - CALB and Gotion are targeting over 50% year-over-year shipment growth, aiming for 180 GWh and 150 GWh respectively in 2026, driven by ESS demand and electrification of commercial vehicles [3] - Both companies plan to expand their effective capacities to 200 GWh by 2026 [3] - Upstream cost pressures from lithium carbonate and LiPF6 are expected to be partially passed through to customers, with ESS customers more likely to accept price hikes than EV customers [3] Company-Specific Insights Wolong Electric - Anticipates humanoid robot-related revenue to double year-over-year in 2026, with a projected revenue of around RMB100 million from humanoid robots in 2025 [8] - The company is investing in a data collection center for humanoid robots, focusing on motion capture [8] ZD Leader - Expects humanoid robot-related revenue to increase from RMB50 million in 2025 to over RMB100 million in 2026, driven by orders from a leading local robot maker [9] - The average selling price of its planetary reducers is expected to decline in the long term [9] Changsheng Bearing - Currently, humanoid robot-related revenue accounts for less than 1% of total revenue, but significant growth is expected [10] - Management anticipates a 20% CAGR in the auto industry, supported by rising content value and market share gains [10] Precision Tsugami China - Achieved over 15,000 unit shipments of machine tools in 2025, with a revenue of over RMB5 billion [11] - Management expects over 10% year-over-year shipment growth in 2026, driven by demand from various sectors [11] Seyond - Projects over 1 million units of LiDAR shipments in 2026, with a focus on ADAS products [13] - Expects average selling prices to drop but gross profit margins to improve due to economies of scale [13] Inovance - Expects continued recovery in the factory automation sector, with strong demand from the battery and 3C sectors [14] - New businesses in robotics and industrial software are anticipated to drive long-term growth [15][16] Hengli Hydraulic - Aims for 20-30% revenue growth in 2026, with significant contributions from its partnership with Caterpillar [17] - Targets RMB300-500 million in sales from screw and linear guide business in 2026 [18] CALB - Targets over 180 GWh in battery shipments for 2026, with a focus on mid-to-high-end EV models [19] - Plans to increase production capacity to 200 GWh by 2026 and expects to pass through lithium carbonate price hikes to customers [20][21] JAC - Expects a net loss of RMB1.68 billion in 2025 but aims for 50,000 units shipment for its Maextro brand in 2026 [23] - The Maextro brand is expected to improve profitability in 2026 due to rising capacity utilization [23] Gotion Hi-Tech - Targets 150 GWh in battery shipments for 2026, with significant expansion in production capacity planned [27][28] Chery - Aims for 3 million units in volume sales for 2026, with a 50% penetration rate for EV sales [30] - Expects stable net profit per vehicle despite BOM cost increases [31] Bethel - Projects over 20% revenue growth in 2026, with a focus on new product introductions [32] - Anticipates relatively weak customer orders in the first quarter of 2026 [32] Conclusion - The conference highlighted significant growth opportunities in the humanoid robot and EV sectors, with various companies preparing for increased demand and addressing cost pressures through strategic planning and partnerships.

Summary of Berteli's Conference Call Company Overview - **Company**: Berteli - **Industry**: Automotive and Robotics Key Points 1. Core Barriers to Growth in Automotive Sector - Berteli has established itself as a leader in the domestic automotive brake system market due to its strong core barriers, which include advanced manufacturing capabilities and integrated system design [1] 2. Revenue Growth and ASP Increase - The company has achieved continuous growth in Average Selling Price (ASP) and revenue in its automotive business, driven by increased penetration of intelligent electronic control systems such as EPB (Electric Parking Brake) and line control braking systems [2] 3. Expansion into Robotics - Berteli is leveraging its deep technical expertise from the automotive sector to expand into robotics, aiming to become a key player in core components and joint modules for humanoid robots, as well as control and vision modules [1][2] 4. Technological Accumulation - The company has accumulated significant experience in precision component manufacturing, mechatronic system design, sensor integration, software development, and supply chain management, which positions it well for future growth in robotics [1] 5. Strategic Initiatives - **Intelligent and Electric Integration**: Berteli is focusing on creating a platform for line control braking systems and has become the first in China to achieve mass production of EPB, with plans to expand into ESC (Electronic Stability Control) and electric tailgate systems [2] - **Global Expansion**: The company has successfully launched its production base in Mexico in 2023 and is planning to establish a base in Morocco in 2024, indicating a deepening global presence [2] 6. Financial Projections - Revenue projections for 2025-2027 are estimated at 12.875 billion, 16.441 billion, and 20.831 billion yuan, with net profits of 1.508 billion, 1.867 billion, and 2.314 billion yuan respectively. The corresponding EPS is projected to be 2.49, 3.08, and 3.81 yuan [2] 7. Investment Rating - The company maintains a "Recommended" rating with a price-to-earnings (PE) ratio forecast of 23, 19, and 15 times for the years 2025, 2026, and 2027 respectively, based on the closing price of 57.70 yuan per share on January 23, 2026 [2] 8. Risk Factors - Potential risks include lower-than-expected automotive sales, slower product and customer expansion, underperformance in humanoid robotics, increased industry competition, and rising raw material costs [2]

Investment Rating - The report maintains a "Buy" rating for the company Berteli (603596) with a target price based on the last closing price of 54.85 [1][10]. Core Insights - The report highlights that 2026 will be the year of commercialization for L3 autonomous driving, with Berteli positioned as a core supplier through its "XYZ + Intelligent Driving Assistance" intelligent chassis solution [4][10]. - Berteli's human-shaped robot screw and motor business is expected to create a second growth curve, leveraging its expertise in electric drive and precision transmission technologies [6][10]. Summary by Sections Company Overview - Berteli focuses on its main business, integrating products such as electronic mechanical brakes (EMB), redundant line control braking systems (WCBS 2.0H), and electric power steering (DP-EPS) [5][10]. - The company has secured a second EMB project with a major domestic automaker, enhancing its position in the market [5][10]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 125 billion, 156 billion, and 201 billion respectively, with corresponding net profits of 14.5 billion, 18.9 billion, and 24.9 billion [10][11]. - The report anticipates a revenue growth rate of 32.95% in 2024, followed by 25.45% in 2025, and 25.39% in 2026 [11]. Market Position - Berteli is recognized as a leader in the intelligent chassis market, with significant market share in the auxiliary intelligent driving front-view integrated machine segment [5][10]. - The company has achieved over 20 million units in cumulative production for its electronic parking brake (EPB) system, solidifying its leadership in the domestic line control market [7][10]. Strategic Initiatives - Berteli is expanding its global production capacity, with projects in Mexico and Germany aimed at enhancing its market reach [9][10]. - The company is focusing on domestic substitution of core components, reducing reliance on foreign key chips [9][10].

Summary of the Conference Call Industry Overview - The conference focused on the automotive industry, specifically strategies and forecasts for 2026, with a review of the automotive market from 2005 to 2025 [1][2]. Key Insights and Arguments 1. **Sales Growth and Valuation**: - Sales growth is a sufficient but not necessary condition for the valuation of the automotive sector to increase. Historical data shows that years with sales growth corresponded with rising valuations, but there were exceptions in years like 2012 and post-2020 [3]. - The automotive sector's valuation tends to respond approximately three months ahead of sales growth before 2020, and this response time has shortened to about one month post-2020 [3]. 2. **Comparison with 2018**: - The year 2026 is expected to mirror 2018, which also faced declining sales due to policy changes. In 2018, the automotive sector began to decline three months before sales dropped significantly [4][5]. 3. **Impact of Policy Changes**: - The introduction of a 5% purchase tax on new energy vehicles in 2026 and changes in subsidy structures are expected to impact demand negatively [1][2]. 4. **Investment Opportunities**: - The focus for 2026 is on new growth areas, particularly in smart driving technologies. Companies in this sector are seen as undervalued, with many trading below 30x P/E ratios while maintaining decent growth rates [7][8]. 5. **Low Valuation and High Growth Stocks**: - Several companies were highlighted as having strong growth potential while being undervalued, including: - **Mastec**: Estimated 20% growth in 2026 with a P/E of 15-16x [10]. - **Yatong**: Expected 30% growth with a P/E of around 20x [10]. - **Fuyou Glass**: Anticipated 15% growth with a P/E of about 15x [11]. - **Weichai Power**: Projected 15% growth with a similar P/E [11]. 6. **Sector-Specific Insights**: - Companies like **Desay SV** and **Kobota** are expected to see significant revenue growth due to their involvement with major clients like Li Auto and NIO, with projected revenues of 90 billion and 21 billion respectively for Q4 [17][21]. - **Huayang Group** is expected to maintain a growth rate of over 20% in 2026, driven by high-margin products [24]. Other Important but Overlooked Content - The conference also discussed the potential risks associated with rising raw material costs, particularly for companies in the forging sector, which could impact earnings realization [13]. - The importance of technological cycles, including the shift towards electric and smart vehicles, was emphasized as a key driver for future growth in the automotive sector [6][7]. - The discussion included a focus on the competitive landscape, with companies like Fuyou Glass expected to benefit from a more favorable market position as competitors exit [30][31]. Conclusion - The automotive industry is facing challenges due to policy changes and market dynamics, but there are significant investment opportunities in undervalued companies with strong growth potential, particularly in the smart driving and electric vehicle segments. The insights from the conference provide a comprehensive overview of the current state and future outlook of the automotive sector.

Core Viewpoint - The company is a leading player in the domestic automotive brake system market, focusing on the development of intelligent chassis systems, including mechanical brakes, electric control, mechanical steering, and lightweight structural components, aiming for a comprehensive line control chassis solution [2][8]. Product Development - The company has established a comprehensive product layout, transitioning from mechanical components to electronic and intelligent systems, including electronic parking brakes (EPB), electronic stability control (ESC), and line control braking systems (WCBS) [17][26]. - The company has expanded its product offerings to include active suspension systems and has made strategic acquisitions to enhance its capabilities in electric steering systems [3][17]. Client Structure - The client base has evolved from traditional domestic brands like Chery and Geely to include new energy vehicle manufacturers and global partners such as Nissan and Ford, reflecting a shift towards more advanced electric control systems [2][20]. - The company has established a stable client structure with over 50 clients globally, including major players in the automotive industry, and is continuously expanding its international presence [31][34]. Globalization Strategy - The company has implemented a three-pronged internationalization strategy, establishing manufacturing bases in China, Mexico, and Morocco to enhance its global supply chain and reduce costs [36][38]. - The Mexican facility, operational since 2023, aims to produce 4 million parts annually, while plans for a Moroccan facility are set to begin in 2024, targeting the European and North African markets [38][40]. Financial Performance - The company has demonstrated robust revenue growth, with a projected revenue of 128.75 billion yuan in 2025, increasing to 208.31 billion yuan by 2027, alongside a steady rise in net profit [6][40]. - The gross margin is expected to improve as new products scale up, with a focus on enhancing profitability through the integration of advanced technologies [41][44]. Technological Capabilities - The company has built a strong technological foundation, focusing on precision manufacturing, system integration, and the development of advanced electronic control systems, which are critical for the automotive industry's shift towards electrification and automation [46][52]. - Continuous investment in research and development has led to significant advancements in product offerings, including the successful mass production of line control braking systems [65][66]. Future Outlook - The company is positioned to leverage its technological expertise and strategic vision to transition from a domestic leader to a global player in the automotive components sector, particularly in the intelligent chassis and robotics markets [11][14].

Investment Rating - The report maintains a "Buy" rating for the company with a current price of 57.70 CNY per share [2]. Core Insights - The company is a leader in the field of line-controlled chassis systems and is positioned to become a key player in humanoid robotics, benefiting from its deep technical expertise and expanding product offerings [8][12]. - The company has established a comprehensive product layout in intelligent chassis systems, including braking, steering, suspension, control, and structural components, and is transitioning its customer base from traditional automotive brands to new energy vehicle manufacturers and global platforms [9][21]. - The company is leveraging its technological capabilities to expand into humanoid robotics, with a focus on core components such as mechanical parts, electronic components, software, and system integration, which are essential for the development of humanoid robots [13][18]. Summary by Sections 1. Line-Controlled Chassis Leader - The company has a well-established position in the intelligent chassis system market, with a complete product layout across braking, steering, suspension, and control systems [21]. - The customer base has evolved from traditional brands like Chery and Geely to include new energy vehicle manufacturers and global automotive platforms [29]. - The company has a robust international presence with manufacturing bases in China, Mexico, and Morocco, enhancing its global supply chain and customer reach [45][48]. 2. Technical Capability Building - The company has consistently increased its R&D investment, with a focus on developing advanced technologies in electric control systems and intelligent driving [61][62]. - The R&D team has grown significantly, with a focus on integrating hardware and software capabilities to enhance product offerings [66]. - The company has established a comprehensive product matrix that includes lightweight components, electric control systems, and line-controlled chassis solutions [70]. 3. Transition from Automotive to Robotics - The company is positioned to leverage its automotive experience to enter the humanoid robotics market, focusing on precision manufacturing and system integration capabilities [12][18]. - The global demand for humanoid robots is expected to grow significantly, with major technology companies investing in this space [8][12]. - The company has already initiated the establishment of subsidiaries focused on robotics components, indicating a strategic shift towards this emerging market [13][18].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 57.70 CNY per share [2]. Core Insights - The company is positioned as a leader in the line-controlled chassis sector and is expected to play a significant role in the future of humanoid robotics. It has established a comprehensive product layout in braking systems, steering, suspension, control, and structural components, transitioning from traditional mechanical systems to intelligent electric control systems [8][9]. - The company is benefiting from the ongoing trends of electrification and automation in the automotive industry, with a strong focus on global expansion and technological innovation [12][16]. Summary by Sections 1. Line-Controlled Chassis Leadership - The company has developed a robust capability in intelligent chassis systems, with a complete product layout in braking, steering, suspension, and control systems. It has established partnerships with major automotive brands, including both domestic and international clients [21][29]. - The company has made significant advancements in electric control systems, becoming a leader in the domestic market for electronic parking brakes (EPB) and expanding into active suspension systems [24][35]. 2. Technical Capability Building - The company has a strong focus on R&D, with continuous investment leading to a significant increase in its technical capabilities. It has established multiple R&D centers globally, enhancing its innovation capacity [61][66]. - The company has developed a comprehensive product matrix, including lightweight components, electric control systems, and line-controlled chassis, which positions it well for future growth [70]. 3. Transition from Automotive to Robotics - The company is leveraging its extensive experience in the automotive sector to expand into the humanoid robotics market. It has already established subsidiaries focused on key components such as motors and actuators, which are essential for robotics [13][18]. - The global market for humanoid robots is expected to grow significantly, with the company poised to become a key player in this emerging field due to its technological expertise and established supply chain [12][18]. 4. Financial Performance and Forecast - The company is projected to achieve revenues of 12.88 billion CNY in 2025, with a compound annual growth rate (CAGR) of 29.6% from 2024 to 2027. Net profit is expected to reach 1.51 billion CNY in 2025, reflecting a strong growth trajectory [2][52]. - The financial metrics indicate a healthy growth outlook, with improvements in gross margins expected as new products scale up and operational efficiencies are realized [55][58].

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The report indicates a transition from "stable volume and slow price" to "price increase and stable volume" for the automotive industry in 2026 [6][16] - The domestic demand for passenger vehicles is expected to show positive growth in 2026, supported by policies such as scrapping and replacement subsidies [27][28] - The report highlights that the average selling price (ASP) of passenger vehicles is projected to increase, with a notable rise in ASP observed in December 2025 [16][20] Summary by Sections 1. Passenger Vehicle Sales and Market Dynamics - In December 2025, domestic passenger vehicle sales reached 2.278 million units, a year-on-year decrease of 16.4% but a month-on-month increase of 13.6% [16] - The total sales for 2025 were 23.052 million units, reflecting a slight year-on-year increase of 0.6% [16] - The report notes that December's performance was significantly below seasonal norms, attributed to the suspension of scrapping subsidies in some regions [16] 2. ASP Trends and Market Expectations - The ASP for passenger vehicles in 2025 showed a year-on-year decline of 2.1%, with December 2025 ASP increasing by 13.7% compared to the previous year [16][20] - The report anticipates that the continuation of scrapping policies will enhance the sales of mid-to-high-end vehicles, contributing to price increases [27] 3. Inventory and Supply Chain Considerations - As of December 2025, the inventory of passenger vehicles stood at 4.708 million units, with a dynamic inventory-to-sales ratio of 2.48 [40] - The report suggests that short-term inventory risks are manageable, as leading domestic manufacturers may adjust production based on current demand [40] 4. Investment Recommendations - The report recommends focusing on various companies within the passenger vehicle supply chain, including Geely, BYD, and Xpeng Motors for growth potential [6][27] - It also highlights companies like Great Wall Motors and SAIC Group as having potential turning points in their performance [6][27]

Group 1 - The core point of the article is the recent business changes at Anhui Mojia Zhichuang Robot Technology Co., Ltd, which has added new shareholders and increased its registered capital to 104 million yuan [1] - The newly added shareholders include Zhiyuan Innovation (Shanghai) Technology Co., Ltd, Bertley (603596), and Fuchun Dyeing and Weaving (605189) [1] - Mojia Robot is a brand under Chery Group, focusing on the research and application of embodied intelligence [1]