Investment Rating - The report assigns an "Buy" rating for the company for the first time [2][45]. Core Views - The company has a strong foundation in the braking industry and is rapidly expanding its intelligent electronic control business, which is expected to drive significant revenue growth [7][45]. - The company is diversifying its product offerings based on its core braking business, with ongoing international expansion expected to contribute significantly to revenue [7][45]. Summary by Sections Company Overview - The company has been deeply engaged in the braking market for over 20 years and has established itself as a leading domestic manufacturer [11]. - The main business segments include mechanical braking, intelligent electronic control, and mechanical steering [15]. Financial Performance - The company reported a revenue of 51.64 billion yuan in the first half of 2025, with a year-on-year growth of 30% [7][19]. - The intelligent electronic control segment's revenue share has increased significantly, from 27% in 2020 to 47% in 2024, while mechanical braking's share has decreased from 72% to 46% during the same period [18]. Revenue and Profit Forecast - Projected revenues for 2025-2027 are 128.2 billion yuan, 160.4 billion yuan, and 193.9 billion yuan, respectively, with corresponding net profits of 14.1 billion yuan, 17.2 billion yuan, and 21.1 billion yuan [6][41]. - The company expects to maintain a compound annual growth rate (CAGR) of 29% in revenue from 2025 to 2027 [6]. Product Expansion and Internationalization - The company is expanding its product categories based on its braking technology, including steering and suspension systems, and has developed three ADAS solutions [29][33]. - The company has successfully entered international markets, initially supplying General Motors and later expanding to other major clients like Stellantis and Volvo [36][37]. Valuation and Comparables - The report provides a relative valuation analysis, comparing the company with peers such as Desay SV and Top Group, with projected PE ratios for 2025-2027 at 22.7, 18.6, and 15.2 times, respectively [6][46].

Core Viewpoint - Bertli's stock price has shown fluctuations with a recent decline, while the company has reported significant revenue and profit growth in the first half of 2025 [1][2]. Group 1: Stock Performance - On September 19, Bertli's stock price decreased by 2.00%, closing at 51.82 CNY per share, with a trading volume of 4.57 billion CNY and a turnover rate of 1.44%, resulting in a total market capitalization of 314.29 billion CNY [1]. - Year-to-date, Bertli's stock price has increased by 17.13%, with a 9.30% rise over the last five trading days, a 3.39% decline over the last 20 days, and a 0.93% increase over the last 60 days [1]. - The company has appeared on the "龙虎榜" (a stock trading list) once this year, with the last appearance on February 6 [1]. Group 2: Financial Performance - For the period from January to June 2025, Bertli achieved a revenue of 5.164 billion CNY, representing a year-on-year growth of 30.04%, and a net profit attributable to shareholders of 522 million CNY, reflecting a 14.19% increase [2]. - Since its A-share listing, Bertli has distributed a total of 664 million CNY in dividends, with 499 million CNY distributed over the past three years [3]. Group 3: Shareholder Information - As of September 10, Bertli had 40,000 shareholders, an increase of 65.24% from the previous period, with an average of 15,162 circulating shares per shareholder, a decrease of 39.46% [2]. - As of June 30, 2025, the top ten circulating shareholders included Hong Kong Central Clearing Limited as the third-largest shareholder with 38.4732 million shares, a decrease of 2.7464 million shares from the previous period [3].

Core Viewpoint - The establishment of L2 standards for intelligent connected vehicles will effectively regulate industry promotion, enhance consumer awareness, and positively impact automakers' development of intelligent driving technology [1][2]. Group 1: Regulatory Developments - The Ministry of Industry and Information Technology has initiated a public consultation phase for the "Safety Requirements for Intelligent Connected Vehicle Combination Driving Assistance Systems" [2]. - The requirements categorize combination driving assistance systems into basic single-lane, basic multi-lane, navigation, and parking assistance systems, providing clear functional specifications for L2 vehicles in various scenarios [2]. Group 2: Industry Impact - The L2 standard will promote hardware development in three dimensions: perception, execution, and control, thereby fostering industry growth [1][2]. - The requirements ensure a comprehensive safety process from research and development to testing and driver activation of L2 functions, including strict design operation conditions and multi-level verification schemes [2].

Core Viewpoint - Bertli's stock price has shown fluctuations with a year-to-date increase of 20.75%, while recent trading activity indicates a net outflow of funds [1][2] Financial Performance - For the first half of 2025, Bertli achieved a revenue of 5.164 billion yuan, representing a year-on-year growth of 30.04%, and a net profit attributable to shareholders of 522 million yuan, up 14.19% [2] - Cumulative cash dividends since the A-share listing amount to 664 million yuan, with 499 million yuan distributed over the past three years [3] Shareholder Information - As of September 10, 2025, the number of shareholders increased to 40,000, a rise of 65.24%, while the average circulating shares per person decreased by 39.46% to 15,162 shares [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited as the third-largest shareholder, holding 38.4732 million shares, a decrease of 2.7464 million shares from the previous period [3]

Industry Overview - EPS (Electric Power Steering) systems have become the mainstream design solution for automotive steering, replacing traditional hydraulic systems due to their high efficiency, safety, and environmental benefits [1][7] - The market size of China's EPS industry is projected to reach 38.2 billion yuan in 2024, with a year-on-year growth of 6.81% [1][7] - The industry is experiencing a clear upgrade trend, with DP-EPS (Dual Pinion Electric Power Steering) and R-EPS (Rack Electric Power Steering) systems achieving higher transmission efficiency compared to traditional systems [1][7] Market Size - The EPS market in China is expected to grow to 40.8 billion yuan by 2025, driven by increasing demand for comfort and safety in vehicles [11] - The rapid development of new energy vehicles (NEVs) is creating new opportunities for the EPS industry, as these vehicles require systems that can handle increased weight from battery packs [5][11] Key Companies - Leading companies in the EPS market include Bosch and Huayu Automotive, with domestic players like Nissin and Zhejiang Shibao gaining market share [8][9] - Zhejiang Shibao reported a revenue of 1.524 billion yuan in the first half of 2025, a year-on-year increase of 35.32%, with a net profit margin rising from 1.1% in 2022 to 5.5% in 2024 [9] - Bertli Automotive Safety Systems achieved a revenue of 5.164 billion yuan in the first half of 2025, reflecting a year-on-year growth of 30.04% [10] Industry Development Trends - Continuous technological innovation is driving the EPS industry towards higher efficiency and intelligence, with R-EPS and line-controlled steering systems (SBW) being key focus areas [11] - The industry is also seeing a push towards domestic production of core components, with local companies making significant technological advancements [11] - Environmental upgrades are being prioritized, with the adoption of recyclable materials and reduced emissions in production processes [12]

Industry Overview - The steer-by-wire (SBW) system is a key technology in automotive intelligence, significantly enhancing driving safety, control experience, and supporting autonomous driving functions [1][4] - The market size for China's steer-by-wire system is projected to reach approximately 5.5 billion yuan in 2024, with an expected growth to 301.5 billion yuan by 2030 [1][9] Market Dynamics - The steer-by-wire system is expected to see a penetration rate of 5% by 2025 and 30% by 2030, with a corresponding market size increase from 63 billion yuan in 2025 to 376 billion yuan in 2030 [4][14] - The automotive market in China has shown a production increase of 12.7% year-on-year in the first seven months of 2025, indicating a growing demand for innovative steering technologies [9] Key Companies - Leading international companies in the steer-by-wire market include Bosch, ZF, and Denso, while domestic players like Nissin and Zhejiang Shibao are emerging as significant competitors [10][11] - Zhejiang Shibao is focusing on electric power steering systems and aims to achieve mass production of steer-by-wire systems by 2026, with a revenue increase of 35.32% in the first half of 2025 [12][14] - Bertli has developed a steer-by-wire product that supports L3 and above autonomous driving, achieving a revenue growth of 30.04% in the first half of 2025 [12][14] Industry Development Trends - The steer-by-wire system is expected to experience explosive growth from 2025 to 2030, driven by advancements in technology and increasing market penetration [14][15] - The industry is witnessing a trend towards the integration of core components domestically, with a target of over 50% localization for key parts by 2030 [15] - The collaboration between steering and braking systems is becoming a focus for research and development, enhancing the overall vehicle control experience [16][17]

Core Insights - In August 2025, the automotive production and sales reached 2.815 million and 2.857 million units respectively, with month-on-month growth of 8.7% and 10.1%, and year-on-year growth of 13% and 16.4% [2][3] - For the week of September 1-7, 2025, retail sales of passenger cars were 304,000 units, a year-on-year decrease of 10% and a month-on-month decrease of 4%, while wholesale sales were 307,000 units, a year-on-year decrease of 5% but a month-on-month increase of 9% [2][3] Weekly Market Performance - During the week of September 8-12, 2025, the CS automotive index rose by 0.21%, while the CS passenger vehicle index fell by 0.37%, and the CS commercial vehicle index decreased by 1.06% [2] - The CS automotive parts index increased by 0.72%, and the CS automotive sales and service index rose by 4.23%, while the electric vehicle index fell by 0.08% and the smart vehicle index increased by 1.36% [2] - The Shanghai Composite Index rose by 1.66% and the CSI 300 Index increased by 1.93%, indicating that the CS automotive index underperformed these indices by 1.72 percentage points and 1.45 percentage points respectively, with a year-to-date increase of 23.76% [2] Cost Tracking and Inventory - As of September 10, 2025, the prices of float glass, aluminum ingots, and zinc ingots changed year-on-year by -9.4%, +7.1%, and -5.2% respectively, and month-on-month by -6%, +0.5%, and -1.1% [3] - The inventory warning index for automotive dealers in August was 57.0%, showing a year-on-year increase of 0.8 percentage points and a month-on-month decrease of 0.2 percentage points [3] Market Focus - Key developments include partnerships in autonomous driving, such as Horizon Robotics collaborating with Hello to accelerate Robotaxi deployment, and the launch of new models like the all-new Wanjie M7, which saw over 100,000 pre-orders within an hour [3] - The Ministry of Industry and Information Technology and other departments issued a joint plan for stabilizing growth in the automotive industry for 2025-2026 [3] Investment Recommendations - In the medium to long term, the focus is on opportunities in incremental components driven by the rise of domestic brands and electric intelligence [4] - Recommended companies include Leap Motor, JAC Motors, and Geely for strong new product cycles, and companies like Kobot, Huayang Group, and Junsheng Electronics for smart technology [4]

Industry Overview - The "old-for-new" policy has shown further effects in Q2 2025, with both passenger and commercial vehicle sales increasing quarter-on-quarter [1] - The total wholesale sales of passenger vehicles in Q2 2025 reached 7.11 million units, a year-on-year increase of 13.0% and a quarter-on-quarter increase of 10.8% [2] - The total industry revenue for Q2 2025 was 921.1 billion yuan, a year-on-year increase of 9.1% and a quarter-on-quarter increase of 15.4% [1] - The overall net profit attributable to the parent company was 33.9 billion yuan, a year-on-year decrease of 8.9% but a quarter-on-quarter increase of 2.0% [1] Passenger Vehicles - The wholesale sales of new energy passenger vehicles in Q2 2025 reached 3.63 million units, a year-on-year increase of 33.6% and a quarter-on-quarter increase of 25.2%, with a penetration rate of 51.1% [2] - The passenger vehicle segment achieved total revenue of 532.2 billion yuan in Q2 2025, a year-on-year increase of 10.5% and a quarter-on-quarter increase of 21.4% [2] - The net profit attributable to the parent company for the passenger vehicle segment was 13.31 billion yuan, a year-on-year decrease of 29.1% and a quarter-on-quarter decrease of 5.5% [2] Components - The components sector achieved total revenue of 251.64 billion yuan in Q2 2025, a year-on-year increase of 10.5% and a quarter-on-quarter increase of 9.9% [3] - The net profit attributable to the parent company in the components sector was 14.97 billion yuan, a year-on-year increase of 19.4% and a quarter-on-quarter increase of 6.5% [3] - The accounts receivable turnover days improved to 88.3 days, a decrease of 8.0 days quarter-on-quarter [3] Trucks and Buses - Heavy truck sales increased quarter-on-quarter in Q2 2025, with leading companies performing better than expected due to strong product capabilities and cost control [4] - The net profit attributable to the parent company for Weichai Power and China National Heavy Duty Truck was 2.93 billion yuan and 360 million yuan, respectively, with China National Heavy Duty Truck showing a year-on-year increase of 4.0% [4] - The bus sector saw a net profit of 1.33 billion yuan in Q2 2025, a year-on-year increase of 12.1% and a quarter-on-quarter increase of 50.2% [4] Investment Recommendations - The "old-for-new" policy is expected to boost downstream consumer demand, with recommendations for companies such as Geely Automobile, BYD, and Xpeng Motors [5] - In the components sector, recommended companies include Xinquan Co., Top Group, and BYD Electronics [5] - For heavy trucks, recommendations include China National Heavy Duty Truck, Weichai Power, and Yutong Bus [6]

Market Overview - The Shanghai Composite Index closed at 3876.34 points, above the annual line, with a change of 0.37% [1] - The total trading volume of A-shares reached 2402.92 billion yuan [1] Stocks Breaking Annual Line - A total of 46 A-shares have surpassed the annual line today, with notable stocks showing significant deviation rates [1] - The stocks with the highest deviation rates include: - Hongli Zhihui: 9.98% deviation, closing price at 7.62 yuan, with a daily increase of 11.40% and turnover rate of 16.56% [1] - Zhejiang Meida: 9.56% deviation, closing price at 7.78 yuan, with a daily increase of 10.04% and turnover rate of 12.95% [1] - Berteli: 6.64% deviation, closing price at 54.53 yuan, with a daily increase of 6.92% and turnover rate of 5.01% [1] Additional Stocks with Minor Deviations - Other stocks that have just crossed the annual line with smaller deviation rates include: - ST Fanli: 4.88% deviation, closing price at 5.52 yuan, with a daily increase of 4.94% [1] - Hisense Video: 4.57% deviation, closing price at 22.15 yuan, with a daily increase of 6.59% [1] - Tiensun Energy: 4.49% deviation, closing price at 7.81 yuan, with a daily increase of 5.68% [1]

Market Overview - The Shanghai Composite Index closed at 3877.55 points, above the annual line, with a change of 0.41% [1] - The total trading volume of A-shares reached 1561.918 billion yuan [1] Stocks Breaking Annual Line - A total of 48 A-shares have surpassed the annual line today, with notable stocks including Hongli Zhihui, Zhejiang Meida, and Berteli, showing divergence rates of 11.99%, 6.33%, and 5.02% respectively [1] - Stocks with smaller divergence rates that just crossed the annual line include Haoshen Electronics, Shanghai Auto Parts, and ST Emergency [1] Top Divergence Rate Stocks - The top three stocks with the highest divergence rates are: - Hongli Zhihui (13.45% increase, latest price 7.76 yuan, divergence rate 11.99%) [1] - Zhejiang Meida (6.79% increase, latest price 7.55 yuan, divergence rate 6.33%) [1] - Berteli (5.29% increase, latest price 53.70 yuan, divergence rate 5.02%) [1] Additional Stocks with Notable Performance - Other stocks with significant performance include: - ST Fanli (4.94% increase, latest price 5.52 yuan, divergence rate 4.88%) [1] - Hisense Video (6.06% increase, latest price 22.04 yuan, divergence rate 4.05%) [1] - Blue Ying Equipment (5.01% increase, latest price 25.16 yuan, divergence rate 3.77%) [1]