继峰股份20241113

Key Points Industry and Company * Company: Xifeng Auto Seating Co., Ltd. (Xifeng) * Industry: Automotive seating market, particularly for passenger vehicles and commercial vehicles Core Views and Arguments * Revenue Growth: Xifeng reported revenue of 5.9 billion yuan in Q3 2023, a 7% increase year-on-year. * Profitability: Xifeng experienced a net loss of 590 million yuan in Q3 2023 due to several factors, including the sale of TMD, layoffs in Europe, and impairment of goodwill. * TMD Sale: The sale of TMD, a loss-making subsidiary, had a significant impact on the company's financial performance in Q3 2023. * Europe Layoffs: Layoffs in Europe were necessary due to the decline in the automotive industry's beta in that region. * New Business Performance: Xifeng's new business, particularly in passenger vehicle seating, performed well in Q3 2023, exceeding budgeted expectations. * China Region Performance: Xifeng's China region continued to contribute significantly to the company's profitability, with stable revenue growth and a healthy EBIT margin. * Competitive Landscape: Xifeng faces competition from established foreign players in the mid-to-high-end automotive seating market. The company emphasizes its technical capabilities and cost competitiveness. Other Important Points * Capital Expenditure: Xifeng plans to invest approximately 4-5 billion yuan in capital expenditures in 2024, primarily for the construction of a research and development center in Shanghai. * Seat Components: Xifeng has made progress in the development of seat components, including comfort keys and rear seat frames. The company is considering further investment in front seat frames as its scale grows. * Captive Supply: Xifeng has established captive supply arrangements for certain components, such as front seat frames, to improve cost competitiveness. * Future Outlook: Xifeng remains optimistic about the growth prospects of the automotive seating market and its own business. The company expects to continue expanding its market share and profitability in the coming years.