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]

Core Insights - The automotive market is increasingly focusing on intelligent driving, with steer-by-wire (SBW) systems emerging as a key investment opportunity, particularly highlighted by Tesla's Cybercab model which eliminates mechanical connections [1][2] - Recent policies from the Ministry of Industry and Information Technology in China support the development of L3 autonomous vehicles, paving the way for SBW systems and enhancing market expectations for the industry [1][3] Company Overview - The company, Nastec, specializes in steering systems, including electric power steering (EPS), hydraulic power steering (HPS), and SBW systems, holding a leading market position in EPS and SBW technologies [2] - SBW technology, which relies solely on electrical signals for steering control, is crucial for higher levels of automation in vehicles, particularly L3 and above [2] Market Position and Performance - Nastec is positioned as a top supplier in the SBW market, having secured its first SBW order in 2022 from Tesla and additional orders from domestic automakers, with plans to commence production in 2026 [3] - The company has a solid foundation in the EPS market, with a revenue of $1.525 billion in the first half of 2025, reflecting an 8.57% year-on-year growth, and contributing 68% to total revenue [4][8] Financial Stability - Nastec's major clients, including General Motors, contribute significantly to its revenue, with the top three clients accounting for 68.5% of total income [8] - The adjusted EBITDA for the first half of the year was $230 million, with a profit margin of 10.26%, indicating a steady improvement in profitability [8] Industry Outlook - The SBW industry is expected to enter a commercial phase by 2025, with projections indicating that the domestic market could exceed 35 billion yuan and the global market could surpass 80 billion yuan by 2030 [9] - Analysts maintain a positive outlook on Nastec, with expectations of improved profitability and market share growth, particularly in the Chinese market [9][10] Future Growth Potential - By 2026, Nastec's revenue structure is anticipated to shift, with SBW contributing a significant portion, while maintaining a strong presence in the North American and Chinese markets [10] - The company's established product matrix and early mover advantage in SBW position it well for future growth, with a low valuation suggesting potential for market capitalization increase [10]

在竞争高度激烈的汽车市场，智能驾驶已成为购车参考的核心标准之一，而智能化趋势下线控转向应时而生，尤其是特斯拉Cybercab车型搭载的线控转向系 统首次彻底取消机械连接，令线控转向站上了投资风口。 政策也在加大支持力度，近期工业和信息化部等八部门联合印发《汽车行业稳增长工作方案（2025—2026年）》，指出将推进智能网联汽车准入和上路通行 试点，有条件批准L3级车型生产准入，这无疑为国内新能源汽车辅助驾驶L3级别标准的落地铺平了道路，同时也为线控转向行业打开了市场预期。 作为线控转向的引领者，耐世特（01316）先发优势具备产品以及技术实力，已和特斯拉以及国内多家造车新势力达成线控转向订单，并将于2026年投产交 付，而今年以来该公司近两年业绩表现也不错，获得了资本青睐，市值升幅达120%。然而相比于2018年的高位该公司估值仍缩水超60%。 在线控转向风口下，耐世特具备投资价值吗？ 站上行业风口，2026年将交付SBW订单 当然，转向市场的玩家也都纷纷开展线控转向的布局，包括采埃孚、耐世特、博世、捷太格特及舍弗勒等均积极开展研发，耐世特是首个SBW商业化应用 的供应商，随着技术成熟，在产品技术趋同下，耐世 ...

Core Viewpoint - The stock of Nexperia (01316) has increased by over 6%, currently trading at 7.24 HKD with a transaction volume of 1.52 billion HKD, following the announcement of a new government plan to boost the automotive industry [1] Group 1: Government Policy Impact - On September 13, the Ministry of Industry and Information Technology and seven other departments issued the "Automotive Industry Stabilization Growth Work Plan (2025-2026)", which aims to promote the industrial application of intelligent connected technology [1] - The plan includes advancing the approval and road testing of L3-level vehicles and improving legal regulations related to road traffic safety and insurance [1] Group 2: Industry Trends - Steer-by-wire (SBW) technology is closely related to advanced autonomous driving and can significantly enhance driving safety and comfort [1] - According to Tianfeng Securities, as the penetration rate of L3-level and above autonomous driving increases, the penetration rate of SBW systems is expected to rise correspondingly [1] Group 3: Competitive Landscape - The competitive landscape for SBW technology is currently favorable, with only Nexperia, Bosch, and ZF achieving mass production of steer-by-wire systems [1] - Nexperia holds over 50% of the global market share for steer-by-wire systems [1]