China Automotive Sys Inc Stock Price, News & Analysis

China Automotive Systems, Inc. (NASDAQ: CAAS) reported a significant Q1 2021, with net sales soaring 77% to $130.3 million, driven by robust demand across key markets. Gross profit rose 75.9% to $19.7 million, and net income turned to $3.2 million from a loss last year. EPS product sales surged 204.9%, comprising 19% of total sales. The company raised its full-year revenue guidance from $470 million to $485 million, reflecting positive market conditions. Cash and equivalents stood at $122 million, ensuring strong liquidity.

China Automotive Systems, Inc. (CAAS) plans to release its unaudited financial results for Q1 2021 on May 12, 2021, before market opening. A conference call is scheduled for the same day at 8:00 A.M. EDT to discuss the results, followed by a Q&A session. The company, a leading power steering components supplier in China, operates through numerous joint ventures and has a customer base that includes major automotive manufacturers like Ford and Fiat Chrysler.

China Automotive Systems (Nasdaq: CAAS) announced a projected 200% increase in steering unit sales to OEM customers in South America for 2021, primarily driven by its joint venture, Brazil Henglong. The company will supply five new vehicle models from Stellantis, raising its total to 12. CAAS anticipates exceeding 450,000 total units sold in South America this year. The CEO expressed confidence in continued international growth, especially in North and South America and potential European market penetration.

China Automotive Systems (NASDAQ: CAAS) reported unaudited financial results for Q4 and audited results for fiscal year 2020, highlighting a 26.4% increase in net sales to $146.5 million compared to Q4 2019. However, the company faced a net loss of $3.2 million attributable to shareholders, driven by a $4.5 million expected credit loss provision related to customer Brilliance Auto's bankruptcy. For FY 2020, net sales decreased by 3.2% to $417.6 million while net loss was $5.0 million. Despite challenges, cash flow from operations improved by 90% to $57.4 million.

China Automotive Systems, Inc. (Nasdaq: CAAS) has announced the mass production of its new Electric Power Steering (EPS) product tailored for Great Wall Motors. Utilizing proprietary technologies, the EPS system enhances user experience and features integration with Advanced Driver Assistance Systems (ADAS) functionalities such as lane keeping and automatic parking. The company has secured additional orders from JAC, Chery Auto, and Fiat Chrysler. CEO Qizhou Wu emphasized the company's readiness for growth amidst evolving automotive technologies.

China Automotive Systems, Inc. (Nasdaq: CAAS) will release its unaudited financial results for Q4 and audited results for the fiscal year ending December 31, 2020, on March 30, 2021, before market opens. This release will be followed by a conference call at 8:00 A.M. EDT to discuss results, including a Q&A session. The company is well-known for supplying power steering components to major automotive manufacturers in China and North America, with an annual production capacity exceeding 6 million steering gears.

China Automotive Systems, Inc. (CAAS) announced a settlement hearing set for February 5, 2021, regarding a stockholder derivative lawsuit. The lawsuit involved allegations of excessive compensation paid to non-employee directors and lack of accurate disclosures in the Company’s proxy statement. If the court approves the non-monetary settlement, no action is required from stockholders. Management believes the lawsuit's impact on financial statements will be immaterial. Shareholders must file any objections by January 26, 2021.

In November 2020, China Automotive Systems (CAAS) achieved a record-high shipment of 70,000 steering units to leading truck OEMs in China and the North American aftermarket. The surge follows increased orders from major producers like Beiqi Foton and Dongfeng Motor, highlighting a recovery in Chinese industrial production. CAAS is also advancing its new assembly line for intelligent RCB steering systems designed for autonomous vehicles, with significant interest from over 10 domestic OEMs. The company expects this momentum to continue into Q1 2021, strengthening its market position.

China Automotive Systems, Inc. (Nasdaq: CAAS) reported shipping approximately 120,000 electric power steering units for Chinese EVs in 2020, with expectations to exceed 140,000 units by year-end. The company targets sales of over 200,000 units in 2021. Major clients include Great Wall Motors and Chery Automobile. As the Chinese EV market grows, propelled by government targets of 25% EVs by 2025, CAAS emphasizes ongoing partnerships and advancements in EPS technology through joint ventures. Despite the optimistic outlook, potential risks from COVID-19 and market volatility remain.