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]

Core Viewpoint - Zhejiang Shibao's stock price increased by 5.16% following the release of its Q3 2025 performance report, indicating positive market reaction to its financial results [1] Financial Performance - The company reported a revenue of 2.462 billion yuan, representing a year-on-year increase of 35.44% [1] - Net profit attributable to shareholders reached 150 million yuan, marking a year-on-year growth of 33.66% [1] - Basic earnings per share were reported at 0.1819 yuan [1] Business Overview - Zhejiang Shibao primarily operates in the automotive steering system sector, serving leading domestic automakers and mainstream new energy vehicle manufacturers [1] - The company's current R&D investments are focused on electric and intelligent steering technologies [1] - The company has secured several mainstream customers for its steer-by-wire and rear-wheel steering systems, although these products have not yet entered mass production [1] - Zhejiang Shibao is a supplier of steering intermediate shafts for Xiaomi Automotive [1]

Core Viewpoint - Zhejiang Shibao (002703) reported a significant increase in revenue and net profit for the first three quarters of 2025, reflecting strong business performance in the automotive steering system sector [1] Financial Performance - The company achieved an operating revenue of 2.462 billion yuan, representing a year-on-year increase of 35.44% [1] - Net profit attributable to shareholders reached 150 million yuan, marking a year-on-year increase of 33.66% [1] - Basic earnings per share were reported at 0.1819 yuan [1] Business Operations - Zhejiang Shibao's primary business involves first-tier supply of automotive steering systems, serving leading domestic automakers and mainstream new energy vehicle manufacturers [1] - The company is focusing its R&D investments on electrification and intelligent steering technologies [1] - The company has secured several mainstream customers for its steer-by-wire and rear-wheel steering technologies, which have not yet entered mass production [1] - Zhejiang Shibao is a supplier of steering intermediate shafts for Xiaomi Automotive [1]

Core Viewpoint - Zhejiang Shibao's stock rose over 5% following the release of its Q3 2025 performance report, indicating positive market reception to its financial results and growth prospects [1] Financial Performance - The company reported a revenue of 2.462 billion yuan, representing a year-on-year increase of 35.44% [1] - Net profit attributable to shareholders reached 150 million yuan, marking a year-on-year growth of 33.66% [1] - Basic earnings per share were reported at 0.1819 yuan [1] Business Operations - Zhejiang Shibao primarily operates in the automotive steering system sector, serving leading domestic automakers and mainstream new energy vehicle manufacturers [1] - The company's current R&D investments are focused on electrification and intelligent steering technologies [1] - The company has secured several mainstream customers for its steer-by-wire and rear-wheel steering technologies, which have not yet entered mass production [1] - Zhejiang Shibao is a supplier of steering intermediate shafts for Xiaomi's automotive division [1]

Group 1 - Nextracker (01316) shares rose over 8%, reaching a high of 8.79 HKD, the highest since January 2022, with a trading volume of 185 million HKD [1] - Tesla CEO Elon Musk announced the detailed rollout plan for the highly anticipated FSD V14 version, with the first version deployment expected next week, followed by V14.1 and V14.2 in a staggered update approach [1] - Huayuan Securities believes that if the FSD V14 performs better than expected, it could further drive technological changes in the autonomous driving industry and promote Tesla's Robotaxi business [1] Group 2 - Guozheng International stated that Nextracker is a global leader in steering systems and a rare player in the autonomous driving supply chain related to Tesla [1] - Industrial Securities highlighted that the company has over a century of focus on automotive steering systems, with strong R&D and innovation capabilities, and a deep accumulation of experience and technology [1] - The company's core products align with major trends in the automotive industry, with sufficient reserves in steer-by-wire technology, leading the industry and expected to benefit from the ongoing transformation in the automotive sector [1]

Core Viewpoint - Zhejiang Shibao (002703.SZ) focuses on automotive steering systems as a primary supplier, targeting leading domestic automakers and mainstream new energy vehicle companies [1] Group 1: Business Overview - The company primarily engages in the first-level supply of automotive steering systems [1] - Major clients include leading domestic automakers and mainstream new energy vehicle enterprises [1] Group 2: Research and Development - Current R&D investments are directed towards electrification and intelligent steering technologies [1] - The company has secured several mainstream clients for its steer-by-wire and rear-wheel steering technologies, which have not yet entered mass production [1] Group 3: Partnerships - The company serves as the steering intermediate shaft supplier for Xiaomi Automotive [1]

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 - The company, Zhejiang Shibao, is currently focused on the primary supporting business of automotive steering systems [2] - The company is closely monitoring opportunities for extending its industrial chain [2] - Any related expansions will be announced through official company announcements [2]

Company Overview - Zhejiang Shibao Co., Ltd. was established in 1984 and focuses on the research, manufacturing, and sales of automotive steering system products [1] - The company has been recognized as a leading enterprise in the automotive steering gear industry by the China Association of Automobile Manufacturers in 2009 [1] - Zhejiang Shibao is a key participant in the formulation of steering gear standards in China and has been awarded as one of the "Top 100 Excellent Automotive Parts Suppliers" for several consecutive years [1] Business Strategy - The company adheres to a business philosophy of "pragmatic innovation" and continuously introduces advanced technology and production testing equipment [1] - It gathers domestic and international experts, technical talents, and management elites to enhance its operational capabilities [1] - Zhejiang Shibao implements lean production management to provide high-quality products and excellent services to both domestic and international customers [1] Market Position - As of August 18, Zhejiang Shibao's A-shares closed at 12.63 yuan, with a gain of 0.96%, while its H-shares closed at 5.4 Hong Kong dollars, up by 1.89% [1] - The company's A/H premium reached 154.81%, ranking seventh among A/H shares, indicating that its H-shares are relatively cheaper compared to A-shares [1][2]

Macro Strategy - The report highlights that government bonds support the improvement of social financing, while an active stock market boosts M2 growth, downplaying the negative growth in monthly loans [1][16] - In July 2025, new social financing reached 1.16 trillion yuan, an increase of 389.3 billion yuan year-on-year, with government bond financing being a major contributor [16][17] - The M2 growth rate increased by 0.5 percentage points to 8.8% in July 2025, driven by an active stock market and improved fiscal spending [16][17] Fixed Income Analysis - The report discusses the comparative value of non-ETF component bonds in the sci-tech bond market, suggesting a shift towards these bonds for better liquidity and potential inclusion in ETF [1][18] - The analysis indicates that the credit spreads of non-ETF component bonds are generally higher than those of ETF component bonds, suggesting a larger selection of bonds with compression potential [1][19] - The report emphasizes the importance of monitoring the performance of sci-tech bonds in the context of market fluctuations and the potential for future inclusion in ETFs [1][19] Industry Insights - The "anti-involution" policy is compared to the supply-side reform, indicating a shift in focus towards new industries such as renewable energy, semiconductors, and high-end equipment [2][22] - The report notes that the current economic environment shows signs of structural and institutional overcapacity, particularly in emerging industries like photovoltaics and lithium batteries [2][22] - The analysis suggests that the "anti-involution" policy aims to enhance quality development rather than merely reducing capacity, with a focus on market-driven measures [2][22] Company Recommendations - Jinlang Technology is projected to benefit from increased demand in Europe and Asia, with a forecasted net profit growth of 68% in 2025 [8] - Upme Holdings is expected to achieve significant profit growth through its multi-brand strategy, with a projected net profit increase of 42.3% in 2025 [9] - Nasda is recognized as a leading domestic printer manufacturer, with a focus on enhancing competitiveness through R&D investments [10]