A recent spin-off from Borg Warner (BWA), the company is an auto parts supplier that operates two distinct businesses: a) Fuel Systems and b) Aftermarket automotive products supplier.
We think PHIN benefits from the auto OEM strategy reversal as they de-emphasize pure BEVs and instead are focusing on hybrid EVs which still have a gasoline engine requiring PHIN fuel systems.
A successful outcome in PHIN from here does not require an ICE growth tailwind but simply a slow transition of the existing car park that needs maintenance and repair.
