Market Context and Company Outlook

The Shanghai Stock Exchange closed 2025‑09‑17 at 3877.55 points, trading above both the annual and half‑year moving averages. 46 A‑share stocks broke the annual line today, including Bethel Automotive Safety Systems (ticker 603596). The company’s share price on 2025‑09‑16 closed at 54.53 CNH, within a 52‑week range of 38.65 to 67.4 CNH and a market capitalisation of approximately 32 billion CNH. Its price‑to‑earnings ratio stands at 28.92, indicating a valuation in line with the consumer‑discretionary sector.

Industry‑Level Drivers

According to a research note from Guolian Minsheng Securities, passenger‑vehicle demand in the second quarter of 2025 remained robust. New‑energy passenger‑car sales grew by 33.6 % YoY to 3.63 million units, achieving a penetration rate of 51.1 %. The “buy‑new‑replace‑old” policy continues to lift wholesale sales, with a 10.8 % month‑over‑month increase to 7.11 million units. These macro‑demand trends support higher sales volumes for automotive parts manufacturers such as Bethel.

Bethel’s Recent Performance and Forecasts

Order Flow and Revenue Guidance

• Bethel reports a continuous increase in project orders. The company expects the one‑box product line to exceed its forecasted shipment volume, with mass production slated for the first half of 2026.
• Light‑weight product sales, which experienced a 7.4 % YoY decline in the first half of 2025, are projected to rebound in the second half, driven by customers’ demand plans.
• Management has expressed confidence in meeting the 1.5 billion CNH annual revenue target. The company anticipates improved profit margins in the second half as revenue scales and fixed‑cost ratios decline.

Profitability and Margin Dynamics

• Bethel’s gross margin rose from Q1 to Q2 2025, and the company attributes this improvement to a higher proportion of in‑house production. Continued expansion of self‑manufacturing is expected to lift gross margin further.
• The company’s Q2 operating margin is projected to be higher than Q1, reflecting the positive impact of scale on fixed‑cost absorption.

Key Customer Relationships

• Chery Automobile constitutes roughly 40 % of Bethel’s revenue in the first half of 2025, underscoring a stable, long‑term partnership.
• Other export customers include firms in the United States, the United Kingdom, and Spain, in line with Bethel’s product‑line focus on front disc, rear drum, parking brakes, master cylinders, and vacuum boosters.

Strategic Initiatives

Bethel has initiated a robotics and low‑altitude economy fund, targeting investment in humanoid robots and related components. The company is developing core parts for humanoid robots and plans to disclose further progress in the future. While this initiative represents diversification beyond automotive braking modules, it remains in the exploratory stage and is not yet contributing to the current revenue stream.

Implications for Investors

• The sustained demand for new‑energy passenger cars and the company’s growing order book position Bethel favorably for a revenue rebound in the second half of 2025.
• Margins are expected to improve with scale; however, the company’s reliance on a few large customers (notably Chery) introduces concentration risk.
• Bethel’s expansion into robotics indicates strategic breadth, though it will likely be a longer‑term investment horizon.

Overall, Bethel Automotive Safety Systems’ current trajectory aligns with the broader consumer‑discretionary trend of rising vehicle sales, while its operational focus on high‑margin braking components and ongoing margin optimisation should support financial performance in the near term.