中国汽车- 汽车供应链调研要点-China Autos & Shared Mobility-Takeaways from Auto Supply Chain Checks

Summary of Key Points from the Conference Call Industry Overview - Industry: China Autos & Shared Mobility - Focus: Auto parts suppliers and their business outlook for 2026 Core Insights 1. Production Outlook: Suppliers anticipate weaker-than-expected production in December 2025 and express caution regarding the domestic pricing environment for 2026, although they remain optimistic about overseas expansion and AIDC liquid cooling orders [1][2] 2. Price Negotiations: Price pressure is ongoing, with suppliers noting that price cuts are now occurring throughout the year rather than during annual negotiations. This includes rebates to OEMs on existing projects and conditional rebates based on sales volume [2][3] 3. Regulatory Environment: China issued draft guidelines on December 12 aimed at curbing auto price irregularities. While suppliers believe these guidelines may help reduce price competition, effective execution is crucial [2][3] 4. Overseas Expansion: Many suppliers are actively pursuing growth in overseas markets. For instance, Xingyu plans to build a second plant in Serbia and lease one in the US, targeting Rmb6 billion in overseas revenue by 2030, up from Rmb0.5 billion in 2024 [3][4] 5. New Opportunities: Suppliers are exploring opportunities in AI data center liquid cooling, humanoid robots, energy storage, and eVTOL. Notable developments include Recodeal's shift to active electrical cables and potential order wins for humanoid robots from companies like Tuopu and Joyson [4][5] Stock Implications 1. Investment Preference: Given the persistent domestic price pressure, preference is indicated for parts suppliers with strong overseas exposure. Minth is highlighted for its 65% overseas revenue exposure and growth potential in humanoid robots and AIDC liquid cooling [5][6] 2. Positioning of Suppliers: Xingyu is also well-positioned to secure multiple headlight projects from global OEMs in 2026, indicating a favorable outlook for these companies [5][6] Additional Considerations - Manufacturing Capabilities: Suppliers are leveraging transferable manufacturing capabilities across different sectors, which may lead to new competitive dynamics in the market [4][5] - Market Sentiment: The overall tone regarding the 2026 outlook among various companies ranges from positive to neutral, indicating a mixed sentiment in the industry [7] This summary encapsulates the key points discussed in the conference call, focusing on the outlook for the auto parts industry in China, the challenges faced, and the strategic directions being pursued by suppliers.