Analysis of the Uptrend Logic and Sustainability of Zhejiang Shibao's 5 Limit-Up Days in 7 Amidst the Rally of Smart Driving Concept Stocks

Zhejiang Shibao (002703.SZ), an A+H listed automotive steering system supplier, has recently achieved 5 limit-up days in 7 amid the rally of smart driving concept stocks. Its uptrend logic can be analyzed from multiple dimensions including policy, technology, fundamentals, and market sentiment:

1. Policy Driver
   : MIIT approved the first batch of L3 autonomous driving models on December 15, 2025, marking the transition of China’s smart driving from testing to commercial application phase; meanwhile, the GB17675-2025 steering system standard will be implemented in July 2026, providing safety specifications for core components of smart driving such as steer-by-wire (SBW) [3][5].
2. Technical Layout
   : The company has core technology reserves required for L3+ autonomous driving such as steer-by-wire and rear-wheel steering. Steer-by-wire is expected to be mass-produced in the second half of 2026, and rear-wheel steering will be mass-produced in the fourth quarter of 2025, with fixed-point cooperation from multiple OEMs [2][4][6].
3. Fundamental Support
   : In 2024, the company’s revenue was 2.69 billion yuan (YoY +48.04%), and from Q1 to Q3 2025, revenue was 2.46 billion yuan (YoY +35.44%). Revenue growth is mainly driven by the increased penetration rate of intelligent steering products [2][7].
4. Market Sentiment
   : Institutional net buying and active trading volume reflect the market’s optimistic expectations for the company’s future growth, and policy dividends have further strengthened the market’s bullish sentiment [9].

1. Industry Conduction Effect
   : The implementation of smart driving policies not only directly benefits vehicle manufacturers but also drives up the valuation of upstream core component suppliers. As a leading domestic intelligent steering system provider, Zhejiang Shibao has become a target of market capital focus.
2. Technology Implementation Rhythm
   : Steer-by-wire technology still needs about one year for mass production, and its actual contribution to the company’s performance is uncertain. The short-term stock price increase has partially reflected future growth expectations.
3. Competitive Landscape
   : The company has technical advantages in the intelligent steering field but needs to face challenges from global competitors, and the penetration rate of L3 autonomous driving is relatively low in the short term (Daiwa Securities predicts a penetration rate of only 1% in 2026) [8].

• Technology Implementation Risk
  : Steer-by-wire mass production still takes time, and short-term performance is difficult to reflect this growth point;
• Order Uncertainty
  : The company has not disclosed specific OEM customer names and order sizes, making it difficult to evaluate actual revenue contributions;
• Policy and Market Risk
  : Currently, L3 autonomous driving is limited to specific regions and scenarios, and the penetration rate may increase slower than market expectations;
• Regulatory Risk
  : The sharp fluctuation of stock price has attracted regulatory attention, and the company issued two abnormal fluctuation announcements during this period [9];
• Competitive Risk
  : Need to face competition from global intelligent steering system suppliers.

• Continuation of Policy Dividends
  : China’s smart driving industry continues to receive policy support, which will drive the demand growth of core components such as intelligent steering;
• Technology Upgrade Space
  : The gradual popularization of L3+ autonomous driving will increase the penetration rate of high-end products such as steer-by-wire;
• Customer Resource Advantage
  : The company has a customer base including Daimler, Scania, FAW, Changan, BYD Commercial Vehicles, Xiaomi, etc., laying a foundation for future business expansion.

The short-term uptrend of Zhejiang Shibao is mainly driven by policy catalysts and market sentiment. Its technical layout and fundamental growth provide support for long-term development, but attention should be paid to risks such as technology implementation time, order uncertainty, and competitive pressure. The smart driving industry is in a stage of rapid development supported by policies, with both investment opportunities and risks. Investors should pay attention to key indicators such as core technology R&D progress, customer cooperation status, and industry penetration rate changes, and evaluate based on their own risk tolerance.