Yanfeng International Automotive Technology Co. Ltd.

Overview Key strengths Key risks Solid market position in global auto interior parts and China?s auto seating segment. Intensifying competition and subdued demand weigh on pricing and margins. Established relationships with leading auto original equipment manufacturers (OEMs), with increasing exposure to electric vehicle (EV) producers. Heavy dependence on China, which accounts for more than half of revenue. Low debt leverage and disciplined financial management. Auto suppliers are facing demand pressure from weak consumer sentiment. YFI also has to cope with a continuous sales decline at its largest customer, Shanghai Automotive Industry Corp. (SAIC). SAIC contributes to 25%-30% of the company?s revenue, by our estimate. That said, an expanding customer base and YFI?s capitalization on the EV transition will support the

...An expanding customer base and product portfolio will support the business growth of Yanfeng International Automotive Technology Co. Ltd. (YFI). Auto suppliers are facing demand pressure from weak consumer sentiment. YFI also has to cope with a continuous sales decline at its largest customer, Shanghai Automotive Industry Corp. (SAIC). SAIC contributes to 25%- 30% of the company's revenue, by our estimate. That said, an expanding customer base and YFI's capitalization on the EV transition will support the company's growth. Programs from EV brands contributed to 66% of the company's outstanding order book as of end-2023, a leap from 39% two years ago. We estimate the company's revenue will increase 2%-4% in 2024-2025. YFI's revenue increased by 8.8% in 2023. Drivers were increased selling to EV customers and expanded product lines after the group's business integration. YFI acquired its seating and safety business from its parent in 2023 when the group optimized its business structure and...

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