Yanfeng International Automotive Technology Co. Ltd.

Overview Key strengths Key risks Solid market position in the global auto interior parts and in China?s auto seating segments. Rising exposure to electric vehicle (EV) customers to constrain margin improvement. Established relationships with leading auto original equipment manufacturers (OEMs). Limited geographic diversity, with more than half of revenue generated from China. Low debt leverage and disciplined financial management. We estimate the company?s revenue will expand by 50%-60% in 2023, thanks to the consolidation of the seating and safety business that was previously controlled by intermediate parent Yanfeng Automotive Trim Systems (Yanfeng). Through the intragroup integration, YFI will manage Yanfeng?s key products as a whole. This would allow faster expansion of the seating business because it can tap YFI?s large

...Intragroup integration to shore up Yanfeng International Automotive Technology Co. Ltd. (YFI) revenue growth over 2023-2024. We estimate the company's revenue will expand by 50%- 60% in 2023, thanks to the consolidation of the seating and safety business that was previously controlled by intermediate parent Yanfeng Automotive Trim Systems (Yanfeng). Through the intragroup integration, YFI will manage Yanfeng's key products as a whole. This would allow faster expansion of the seating business because it can tap YFI's large customer network and leverage the company's reputation in the global market. YFI is likely to roll out more integrated offerings, with the interior, seating and safety businesses integrating research and development (R&D) capability and jointly developing products. YFI to maintain solid customer relationships and a leading position in the global auto interior products segment. We expect the company to maintain a market share of 11%-13% in the segment over the next two...

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