
China Automotive Systems is upgraded to BUY after strong 1H26 results and a compelling valuation at 1.2x EV/EBITDA versus peers at 5.6x. EPS segment drives margin expansion and profit growth, now 46.8% of sales, with robust demand from both domestic and overseas automakers. Management raised 2026 revenue guidance to $850 million, supported by new European contracts and a Mexico plant adding 1 million units of capacity.










