Key Takeaways from Keboda's Management at GS China Forum 2026 Company Overview - **Company**: Keboda (603786.SS) - **Industry**: Lighting Control and Intelligent Driving Core Insights 1. **Growth Expectations**: - Keboda anticipates a **teen growth rate** from its main business (lighting control) over the next **3-5 years**. The company currently holds a **15% market share** in the lighting control sector, which accounts for approximately **50% of total revenue**. The goal is to achieve a **20%+ market share** in the same timeframe, implying a **10%-15% CAGR** driven by new design wins, including partnerships with **Volkswagen** and **BMW** [4][5] 2. **Pricing and Margin Pressures**: - The management expects **higher pricing pressure** in **2026** compared to the previous year, primarily due to: - Slowing growth in the auto market leading to increased competition - Margin pressures from **raw material price inflation** - To mitigate these pressures, Keboda plans to engage selectively with customers, focus on R&D-driven cost reductions, innovate higher-value production (e.g., micro LED lighting control), and pass costs through to customers [4][5] 3. **Intelligent Driving Transformation**: - Keboda is transitioning towards intelligent driving domain controllers, aiming to **double revenue** by **2026** and reach **Rmb18bn-20bn** in the next five years, up from around **Rmb800mn** in **2025**. The company has secured cumulative orders of **Rmb20bn** since **2022**. Key clients include: - **Nio** (with deliveries starting in **2027**) - **SAIC-GM** for its Zhijing L7 model and Cadillac - Collaborations with **Momenta**, **Volkswagen**, and **BMW** [4][5] 4. **Customer Profile**: - Volkswagen is the largest customer, contributing approximately **40% of total revenue**, followed by Nio and BMW. In the intelligent driving segment, BMW accounts for more than half of the total cumulative orders of **Rmb20bn** [5] 5. **Gross Margin Expectations**: - Currently, Keboda's gross margin is around **12-13%**, with expectations to reach **20%** after doubling revenue. The timeline for break-even is contingent on scaling effects and R&D investments [4][5] Additional Important Points - The company is focusing on **selective customer engagement** and **higher-value production innovations** to navigate the competitive landscape and maintain profitability [4] - The management's insights reflect a strategic shift towards **intelligent driving**, indicating a long-term growth trajectory beyond traditional lighting control [4][5]