...March 31, 2021 HONG KONG (S&P Global Ratings) March 31, 2021--S&P Global Ratings today said that Yanfeng International Automotive Technology Co. Ltd.'s (YFI; ###-/Stable/--) investments in product development and solid demand recovery in China's auto market will help the firm improve profit and support its low leverage in 2021. This uplift also applies to YFI's parent, Huayu Automotive Systems Co. Ltd. (HASCO). HASCO's performance also underpins the rating on YFI, given YFI's status as a strategically important subsidiary. China was the first major auto market to come out of the pandemic and its recovery is key to both entities. HASCO derives 80% of its revenue from China, while YFI generates half its sales in the country. The auto suppliers have as such recovered faster than their peers that have more global exposure. Despite lower revenue, HASCO's EBITDA margin improved to 10.3% in 2020 from 9.7% a year previous, thanks to better product offerings and stringent cost control. HASCO's position...
