NBJF(603997)2024-12-03 07:28Key Points Industry and Company Involved - Company: Geely Auto Group - Industry: Automotive零部件 Core Views and Arguments - Overall Performance: The company's overall performance is stable, with domestic operations performing well, while overseas operations are facing challenges. - Domestic Operations: Domestic operations, including headrest and armrest businesses, as well as domestic businesses such as seat air vents and car refrigerators, are performing well. - Overseas Operations: Overseas operations, particularly in Europe, are facing challenges with a decline in sales revenue. - TMD Divestiture: The divestiture of TMD has been completed, and the remaining North American business focuses on passenger car interior events and commercial vehicle seat businesses. - Non-TMD Operations: Non-TMD operations in North America contribute approximately 20-30 billion RMB in revenue annually and are currently experiencing a small loss, with the loss ratio significantly lower than TMD. - Management Changes: The appointment of Guo Qiang as the Global COO of Geely Auto has focused on improving the management of North American factories, leading to a gradual reduction in losses. - Cost Reduction: The company aims to reduce costs through various measures, including factory optimization, cost control, and workforce adjustments. - New Business: New businesses, particularly seat businesses, are expected to see significant revenue growth due to new orders and increased production. - Customer Strategy: The company focuses on expanding its customer base, targeting both established automakers and emerging brands like Huawei and Xiaomi. Other Important Points - Cuts: The company plans to reduce its workforce, aiming to save costs in light of the industry's downturn. - Research and Development: The company has increased its R&D personnel and expenses in recent years due to the growth in orders. However, the growth rate of R&D personnel and expenses is expected to slow down as projects enter mass production. - Vertical Integration: The company is exploring vertical integration for certain components, such as front seats, but the focus remains on scale growth and profit margin improvement. - Capital Expenditure: The company plans to invest in a new headquarters in Shanghai for its R&D and business teams, aiming to improve efficiency and reduce rental costs.