Core Viewpoint - MSCI announced the index review results for November 2025, with Berteli being removed from the index due to objective quantitative indicators such as market capitalization and liquidity [1] Group 1: Company Performance - Berteli's stock price has experienced significant fluctuations, closing at ¥43.34 on November 24, down over 30% from its yearly high [2] - The company reported a revenue growth of 27.04% year-on-year for the first nine months of 2025, with 413 new project approvals, representing a 37.21% increase [3] Group 2: Business Operations - Berteli's main business includes brake systems, steering systems, suspension systems, lightweight solutions, and intelligent driving systems, with recent expansions into humanoid robotics [3] - The company has completed its layout for screw and motor technologies in the new robotics sector [3] Group 3: Legal Issues - Berteli has filed a lawsuit against former executives for intellectual property infringement, which has garnered market attention [3] - The lawsuit involves five patents that Berteli claims were obtained through the misuse of its core technology secrets by former employees who established new companies after leaving [5]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][3]. Core Insights - The company is expected to see a recovery in performance driven by the growth of its air suspension business, with projected net profits for 2025-2027 at 339 million, 413 million, and 538 million yuan respectively, corresponding to PE ratios of 23.5, 19.3, and 14.8 times [3][4]. - The company achieved a revenue of 6.048 billion yuan in the first three quarters of 2025, reflecting a year-on-year increase of 20.32%, although net profit was impacted by intensified price competition in the domestic automotive market [3][4]. - The company’s main business includes automotive intelligent driving systems and air suspension systems, with future growth expected from intelligent driving products and air suspension business [3][4]. Summary by Sections Financial Data and Profit Forecast - Total revenue is projected to grow from 5.897 billion yuan in 2023 to 12.897 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 20% [4][29]. - The net profit is expected to fluctuate, with a significant drop in 2024 to 303 million yuan, followed by a recovery in subsequent years [4][29]. - The gross margin is forecasted to decline slightly from 27.4% in 2023 to 23.8% in 2027, indicating potential pressure on profitability [4][29]. Industry and Company Situation - The company is positioned in the automotive sector, focusing on intelligent driving systems and air suspension, with a market share of 19.7% in the air suspension segment as of August 2025 [3][4]. - The demand for intelligent driving products is expected to grow alongside the electrification and intelligence of vehicles, with a penetration rate of 52.09% for L2 and above intelligent driving in China as of Q1 2025 [3][4]. - The company’s TPMS business has a strong foothold with major global automotive manufacturers, benefiting from the increasing safety standards in the automotive industry [3][4]. Key Assumptions - The air suspension business is anticipated to grow significantly, with revenue growth rates projected at 49%, 76%, and 33% for 2025-2027 [3][4]. - The TPMS business is expected to maintain stable growth, with revenue growth rates of 22%, 23%, and 25% for the same period [3][4]. - The sensor business is projected to grow at approximately 18% annually from 2025 to 2027 [3][4].

Core Viewpoint - The recent serious accident involving an intelligent driving system vehicle highlights the safety issues and deficiencies in current automotive intelligent driving systems, particularly in the context of L2 and L3 classifications [1][2][4]. Group 1: Issues Identified - The public testing primarily involved systems with L3 capabilities, which do not meet the reliability requirements for L3 classification, leading to confusion in the market regarding L2 and L3 definitions [1][2]. - The testing revealed that manufacturers generally lack the capability to handle long-tail scenarios, with deficiencies in both hardware and software aspects of intelligent driving systems [2][3]. - There is a significant limitation in the testing and validation of mass-produced vehicles before market launch, as manufacturers rely heavily on simulation and road testing without adequate performance testing in dangerous conditions [3][4]. Group 2: Recommendations - It is essential to standardize the understanding of autonomous driving function classifications to prevent misleading marketing and user misuse [5][6]. - The industry must accelerate the development of standards for L2 and L3 systems, ensuring that testing and evaluation methods are unified and scientifically sound [7][8]. - Regulatory bodies should clarify testing requirements and ensure comprehensive testing methods are applied, particularly in hazardous scenarios [8][9]. - The industry should adopt integrated vehicle-road-cloud systems to enhance the performance of autonomous driving systems, addressing the limitations of single-vehicle perception [9][10]. - A data platform should be established to facilitate the collection and sharing of high-quality scenario data, which is crucial for improving the training and testing of intelligent driving systems [10][11]. - Manufacturers should conduct more extensive testing under extreme conditions to ensure that safety standards are not just met but exceeded [11][12]. - Immediate rectification of hidden door handle designs is recommended to enhance safety, regardless of pending regulatory changes [12].

Core Viewpoint - The automotive parts giant Berteli is expanding into embodied intelligence and low-altitude economy, which has attracted significant investor interest, with suggestions to accelerate the layout of the robotics industry chain [2] Financial Performance - In the first half of the year, Berteli achieved revenue of 5.164 billion, a year-on-year increase of 30.0%, and a net profit attributable to shareholders of 522 million, up 14.2% [3] - However, the second quarter saw a decline in growth, with revenue of 2.526 billion, a quarter-on-quarter decrease of 4.2%, and a net profit of 252 million, down 6.8% [3] - The gross profit margin for the first half of the year was 18.56%, down from 22.14% in the same period over the past three years [3] Future Growth and Margin Outlook - The company expects continued growth in project orders, which will positively impact gross margins as fixed costs decrease with revenue scale [4] - New projects and product expansions are anticipated to improve profitability, with 282 new designated projects expected to generate an annualized revenue of 4.18 billion by mid-2025 [4] Technological Advancements - The automotive industry is transitioning from electrification to intelligence, with a focus on high-level autonomous driving requiring multiple redundancies in key execution links [6] - Berteli is focusing on the development of Electronic Mechanical Braking (EMB) systems, which are seen as a future direction for line control braking [6][7] Investment and Market Position - Berteli has established a fund for investing in humanoid robots and low-altitude economy sectors, with the fund already registered with the China Securities Investment Fund Association [7] - Despite recent stock performance concerns, the company believes its value is underestimated, with a closing stock price of 51 yuan and a market capitalization of 30.93 billion [8]

Group 1 - Bertli (603596) will have 213,500 restricted shares unlocked on August 6, accounting for 0.04% of the total share capital [1] - In the past year, a total of 1,079,400 shares have been unlocked, representing 0.18% of the total share capital [1] - After this unlocking, the company will have no restricted shares remaining [1] Group 2 - The unlocking involves specific shareholders, including Wang Xiaojie with 14,000 shares valued at 660,000 yuan, and core employees with 199,500 shares valued at 9,404,400 yuan, both under a 61-month lock-up period [2] Group 3 - In Q1 2025, Bertli reported a main revenue of 2.638 billion yuan, an increase of 41.83% year-on-year [3] - The net profit attributable to the parent company was 270 million yuan, up 28.79% year-on-year, while the net profit after deducting non-recurring gains and losses was 266 million yuan, an increase of 38.61% year-on-year [3] - The company's debt ratio stands at 43.44%, with investment income of -5.8961 million yuan and financial expenses of -11.7727 million yuan, while the gross profit margin is 17.97% [3] - Bertli's main business includes automotive brake systems, intelligent driving systems, and steering systems, with capabilities in the independent development of mechanical brake systems, mechanical steering systems, and intelligent electronic control systems [3]