Open source securities: Bethel Automotive Safety Systems (603596.SH) intends to acquire Yubei Steering, leading the integration of the automotive industry in the era of line control revolution.

Open-source securities issued a research report stating that the braking system leader Bethel Automotive Safety Systems (603596.SH) plans to acquire 50.97% of the equity of Yubei Steering to achieve control. Yubei Steering is a leading company in the steering system industry, with revenues of 3.18 billion yuan in 2025 and customers covering mainstream car companies. This acquisition will enhance Bethel Automotive Safety Systems' layout in chassis horizontal and vertical directions, forming customer, product, and supply chain synergy. With the popularization of autonomous driving, steer-by-wire technology is facing a historic opportunity and is expected to continue to benefit. Continued optimism for players in the chassis sector driven by autonomous driving. Key points of Open-source securities are as follows: Bethel Automotive Safety Systems announced its intention to acquire 50.97% equity of Yubei Steering to achieve control The company announced on February 25 that it plans to use its own funds to acquire 50.97% equity of Yubei Steering from Yubei Steering shareholders Jionghong Industry, Hefei Huaxin, and Hefei Chantou. After the acquisition is completed, Bethel Automotive Safety Systems will become the controlling shareholder of Yubei Steering. In addition, New Navi Electromechanical, Dongjun Trading, Xinxiang Juxian, Hangzhou Huaxin, and Weibaochuan will hold 22.7%, 13.6%, 7.2%, 3.6%, and 1.8% equity of Yubei Steering, respectively. After the transaction is completed, four of the seven members of Yubei Steering's board of directors will be nominated by Bethel Automotive Safety Systems. The target valuation of this transaction does not exceed 2.2 billion yuan, and the transaction price does not exceed 1.12 billion yuan. The specific price still needs to be determined, and the transaction still needs to obtain approval from relevant departments such as antitrust. Yubei Steering is a leading player in the industry, with revenues of 3.18 billion yuan in 2025 Yubei Steering was established in 1969 and its main products include mechanical steering systems, electronic power steering systems, hydraulic power steering systems, steering system components, and intermediate shafts. The company's steering products are at the forefront of the industry, with sales of over 5 million steering gears in 2021, accounting for a 20% market share. In terms of steering systems, the company has successively developed C-EPS, P/DP-EPS, and conquered technical developments such as ball screws in 2023. In addition, the independently developed motor control unit has broken the foreign monopoly and has also expanded into steer-by-wire technology. Currently, the company's products are distributed in dozens of countries and regions, with cooperative relationships established with Ford, Nissan, Volkswagen, Stridis, Tesla, Isuzu, Changan, FAW, GAC, BYD, Geely, Great Wall, Xiaopeng, ZERO RUN, and others. The revenue in 2024-2025 was 3.03 and 3.18 billion yuan, with net profits of 120 million and 160 million yuan, respectively. This acquisition is expected to enhance Bethel Automotive Safety Systems' layout in the large chassis field and form customer, product, and supply chain synergy Bethel Automotive Safety Systems is a leading player in the brake system industry, with products covering brake calipers, electronic parking brake systems, and steer-by-wire control systems. In 2022, it acquired Zhejiang Wanda to expand its steering business, with steering systems achieving revenues of 559 million in 2024. In addition, the company also lays out air suspension, chassis control, and assisted driving products, forming a comprehensive layout in chassis horizontal, vertical, and longitudinal directions. If this acquisition can be completed, it will help enhance Bethel Automotive Safety Systems' layout in the large chassis field, better grasp the era of steering systems transitioning from traditional to steer-by-wire, strengthen the development capabilities of key components such as ball screws and motor control, and achieve good synergy effects in various fields such as customers, products, and supply chains. Autonomous driving is the trend, steer-by-wire technology is facing a historic opportunity The popularization of autonomous driving has become the mainstream trend, and steer-by-wire technology is facing a historic opportunity. Currently, Tesla's FSD has advanced to version 14, with over 1.1 million paying users. Based on Tesla's smart driving algorithm, its Robotaxi is operating in North America, in cities like Austin and the Bay Area, with CyberCab products without steering wheels or pedal accelerators expected to enter mass production in April 2026 and be sold to consumers by 2027. Domestic vehicle manufacturers and third-party suppliers are promoting the landing of L4 Robotaxi and the popularization of autonomous driving in passenger cars. Steer-by-wire technology has advantages such as variable steering ratios, strong safety, and good platform compatibility, making it naturally suitable for autonomous driving. As smart driving becomes more popular, steer-by-wire technology is expected to become a standard feature in cars, with players in the industry chain continuing to benefit. Investment recommendations: Benefiting targets include Bethel Automotive Safety Systems, Zhejiang Asia-Pacific Mechanical & Electronic, NEXTEER, Zhejiang Shibao, Zhejiang Vie Science & Technology, Higa Co., Ltd., Shanghai Baolong Automotive Corporation, Anhui Zhongding Sealing Parts, Ningbo Tuopu Group, etc. Risk warning: Market demand lower than expected, intense market competition, fluctuations in upstream raw material prices.