In-depth Analysis Report on FAWER Automotive Parts (000030.SZ)

Based on the collected information, I have prepared a business analysis and strategic balance report for FAWER Automotive Parts.

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FAWER Automotive Parts is an A-share listed company focused on auto parts, with products covering multiple sectors including chassis systems, thermal management systems, and electronic control systems[0]. In recent years, the company has actively transformed towards new energy and intelligent technologies, and successfully entered the flying car supply chain in 2025.

Indicator	Value
Market Capitalization	Approximately RMB 9.25 billion
Current Stock Price	RMB 5.53
Price-to-Earnings Ratio (PE)	14.15x
Net Profit Margin (TTM)	3.93%
Return on Equity (ROE)	8.35%

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According to public information, FAWER Automotive Parts has received a project designation and development notice from

, confirming it will supply the following products[1]:

Product Type	Supply Model	Technical Features
Electronic Control Shock Absorbers	Co-development with Customer	Intelligent Active Suspension Technology
Thermal Management Products	Independent R&D Solution	Customized for the Special Needs of Flying Cars

• Low-altitude economy has been included in the national strategic emerging industries, with broad market space
• Flying cars have higher demand for intelligent components such as electronic control shock absorbers
• Early layout can secure first-mover advantage in the track

• The low-altitude economy sector is still in the
  early development stage
  [1]
• The commercialization timeline is uncertain
• Market scale is limited, with limited revenue contribution in the short term

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The business structure of FAWER Automotive Parts is undergoing significant changes:

Time Period	Proportion of New Energy Orders	Proportion of Traditional Fuel Vehicle Orders
2023	Over 60%	Approximately 40%
H1 2024	Nearly 80%	Approximately 20%

The rapid increase in the proportion of new energy business reflects the

of the company’s transformation strategy.

Regarding the issue of declining net profit margin of traditional businesses, although precise data of an “8% decline” has not been found, the company does face the following challenges:

Indicator	FAWER Automotive Parts	Industry Average (Estimated)	Gap
Net Profit Margin	3.93%	4-6%	Lower
Operating Profit Margin	4.60%	5-7%	Lower
Return on Equity (ROE)	8.35%	10-12%	Lower

1. Decline in capacity utilization due to the contraction of the traditional fuel vehicle market
2. Sustained price reduction pressure on traditional auto parts products
3. R&D investment tilted towards new energy and intelligent technology sectors
4. Fluctuations in raw material costs affecting gross profit margin

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In the first half of 2024, the company achieved a net profit growth of

[1], mainly driven by the new energy business. The proportion of new energy orders increased from 60% to 80%, proving the effectiveness of the company’s transformation strategy.

• Accelerate capacity release of new energy product lines
• Increase the proportion of high-margin products such as thermal management systems and electronic control shock absorbers
• Optimize the capacity structure of traditional businesses and eliminate outdated production capacity

Although the flying car business is in the early stage, it represents the ultimate application scenario of

.

1. Technology Synergy
   : Migrate electronic control shock absorber and thermal management technologies for new energy vehicles to the flying car sector
2. Customer Binding
   : Deepen cooperation with leading flying car manufacturers to establish first-mover advantage
3. Continuous R&D
   : Maintain R&D investment to ensure technological leadership

Build a product matrix with the trinity structure of

:

                    ┌──────────────┐
                    │ FAWER Auto   │
                    └──────┬───────┘
           ┌───────────────┼───────────────┐
           ▼               ▼               ▼
    ┌────────────┐  ┌────────────┐  ┌────────────┐
    │ Traditional│  │ New Energy │  │ Flying Car │
    │ Business   │  │ Business   │  │ Business   │
    │ Stable Cash│  │ Growth     │  │ Future Growth│
    │ Flow (20%) │  │ Engine (60%)│  │ Driver (20%)│
    └────────────┘  └────────────┘  └────────────┘

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Indicator	Value	Evaluation
Price-to-Earnings Ratio (PE)	14.15x	Mid-tier in the industry
Price-to-Book Ratio (PB)	1.17x	Low, with a margin of safety
Current Price / 200-Day Moving Average	5.53/5.79	Approximately 4.5% below the moving average

• 🚗 Continuous contraction of traditional businesses
• ⚡ Intensified competition in the new energy market
• ✈️ Flying car commercialization falling short of expectations

• 🔋 Rapid growth of new energy orders, improved profitability
• 🛸 Favorable policies for low-altitude economy
• 📈 Demand for intelligent upgrading of automobiles

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The decline in net profit margin of traditional businesses and the expansion of new businesses faced by FAWER Automotive Parts are, in essence, a microcosm of the

. The company achieves dynamic balance through the following methods:

1. Rapid Growth of New Energy Business
   : Use high-growth business to hedge against the decline of traditional businesses; the 41.62% net profit growth in H1 2024 proves the effectiveness of this strategy
2. Technology Synergy and Migration
   : Extend electronic control and thermal management technologies accumulated in the new energy sector to flying cars, realizing technology reuse
3. Ladder-type Business Layout
   :
   • Short-term: New energy business contributes main profits
   • Mid-term: Flying car business begins to contribute incremental growth
   • Long-term: Form a diversified business matrix

Time Horizon	Rating	Rationale
Short-Term	Neutral	Traditional businesses are under pressure, and it takes time for new energy business to release capacity
Mid-Term	Optimistic	Leading layout in the flying car track, supported by policies
Long-Term	Watch	Great potential of low-altitude economy, need to continuously track commercialization progress

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[0] Jinling API - FAWER Automotive Parts Company Profile and Market Data
[1] Shanghai Securities News/Securities Times - “FAWER Automotive Parts: Secured Project Designation from Flying Car Client to Supply Electronic Control Shock Absorbers and Other Products” (https://www.cnstock.com/tag/50884, https://www.stcn.com/article/detail/1635006.html)