Core Viewpoint - The Hong Kong stock market opened lower on July 7, but stablecoin concept stocks rose, with the Hong Kong Stock Connect Technology ETF (513860) showing a year-to-date increase of over 27% [1] Group 1: Market Performance - As of 10:20 AM, the Hong Kong Stock Connect Technology ETF (513860) was flat after a pullback, with notable individual stock performances including Health Road up over 17% and Kuaishou-W up over 3% [1] - The Hong Kong Stock Connect Technology Index increased by 30.85% as of July 4, 2025, while the Hang Seng Index rose by 19.22% and the Hang Seng Technology Index by 16.74% [1] Group 2: Fund Flows - According to Wind data, the Hong Kong Stock Connect Technology ETF (513860) saw a net inflow of 240 million yuan over the past five days, 520 million yuan over the past three months, and 657 million yuan year-to-date [1] Group 3: IPO Activity - In the first half of 2025, there were 42 IPOs in Hong Kong, raising over 107 billion HKD, which is approximately 22% more than the total for the previous year, making Hong Kong the global leader in IPO fundraising [1] Group 4: Valuation Metrics - The Hang Seng Index had a TTM price-to-earnings (P/E) ratio of 10.68 as of July 1, 2025, with a historical percentile of 63.98% and a dividend yield of 3.93% [1] - The Hang Seng Technology Index had a TTM P/E ratio of 20.10, with a historical percentile of 8.95%, indicating a relatively low valuation level [1]

Domestic News - The National Development and Reform Commission of China signed cooperation documents with Brazilian authorities, including a memorandum on the second phase of strategic alignment and cooperation in artificial intelligence [2] - The State Administration for Market Regulation exposed six typical cases of "involution" competition in product quality, including a case involving Shaoxing Hongguan New Energy Co., which sold substandard "liquid wax alcohol ether composite diesel fuel" [3] - In the first five months of 2025, the cumulative transaction volume of second-hand cars in China reached 7.91 million units, a year-on-year increase of 0.6%, while the transaction value was 516.4 billion yuan, a year-on-year decrease of 2.1% [4] International News - Tesla's Cybertruck sales are sluggish, with a global delivery of approximately 384,000 units in Q2, a year-on-year decline of 13.5%, marking the largest drop in the company's history. Deliveries of "other models" (including Model S, Model X, and Cybertruck) were about 10,400 units, down 52% year-on-year. Cybertruck sales in Q1 were estimated to be between 5,000 to 6,000 units, far below the target of 250,000 units per year set by Elon Musk for 2025 [5] - Japanese Prime Minister Kishida stated that Japan is prepared for all possible tariff scenarios and will defend its interests while promoting zero tariffs on automobiles [6] - Dubai's Roads and Transport Authority signed a memorandum with Pony.ai to launch pilot tests for autonomous vehicles, with plans for phased implementation starting in 2025 and full commercial operation by 2026 [7] - The EU is experiencing significant internal divisions regarding trade negotiations with the US, with countries like Germany and Italy pushing for quick agreements, while France, Spain, and Denmark express concerns about potential concessions. The outlook for negotiations is not optimistic [8] Corporate News - NIO's CEO Li Bin announced that the starting price for the L90 model will be below 300,000 yuan, with display vehicles set to arrive on July 10 and pre-sales commencing [11] - Li Xiang, CEO of Li Auto, emphasized the importance of open communication among new energy vehicle leaders and suggested that Xiaomi's success in the automotive sector requires a full commitment [12] - BYD announced a strategic partnership with Shanghai LEGO Land Resort to focus on green travel and immersive driving experiences for children aged 2-12 [13] - TSMC is reportedly delaying the construction of its second factory in Japan due to potential tariffs from the Trump administration, as the company accelerates investments in the US [14] - New Stone Technology's autonomous vehicles signed a strategic cooperation agreement with the Shenzhen Car Rental Industry Association, aiming to provide 1,000 autonomous vehicles to enhance smart logistics [15]

前5月陕西新能源汽车出口增速达173% 据"陕西发布"微信公众号，近日，陕西省工信厅发布消息：今年前5月，陕西新能源汽车出口量15.5万 辆，排名全国第三，增速达173%，出口量超2024年全年总量14.7万辆。前5月，陕西汽车产量78.9万 辆，同比增长29.3%，高于全国18.2个百分点；新能源汽车产量56.1万辆，同比增长36.6%，占全省汽车 产量的71.1%。陕西汽车重点企业整体生产经营形势良好，陕汽各类卡车销量达7.17万辆，同比增长 7%，在国内市场份额中占比为16%；西安比亚迪生产汽车51.5万辆，同比增长39.5%；西安吉利生产汽 车14.2万辆，同比增长38.7%。 雷军：小米YU7正式交付首批车主 据第一财经，7月6日，在位于安徽合肥的蔚来智能工厂，蔚来创始人、董事长兼CEO李斌首次在直播中 透露，乐道L90起售价将低于30万元。据悉，乐道L90展车将于7月10日全面到店，并正式开启预售。 理想汽车：理想L6累计交付已突破29万辆 7月5日，理想汽车发文表示，理想L6累计交付已突破29万辆。 比亚迪储能与国网湖南综能达成深度合作 7月3日，比亚迪储能与国网湖南综合能源服务有限公司合作框架 ...

Core Viewpoint - The article discusses the different design philosophies between electric vehicles (EVs) and traditional internal combustion engine (ICE) vehicles, emphasizing that there is no absolute right or wrong in these choices, but they lead to different commercial outcomes in the short, medium, and long term [1]. Group 1: Design Philosophy - The design of Xiaomi's SU7 and YU7 has received positive feedback for its aesthetics, which closely resemble those of traditional ICE vehicles [2]. - Xiaomi prioritizes aesthetics in its design philosophy, aiming for mainstream consumers to find the vehicles visually appealing at first glance [1][2]. - The criticism of Li Auto's MEGA design led to adjustments in the appearance of its i8 and i6 models, indicating a shift towards more conventional aesthetics [1]. Group 2: Financial Performance - Xiaomi has shown strong financial performance over the past 15 months, while Li Auto's financial results have not met earlier expectations, leading to dissatisfaction regarding its design choices [2]. - Public sentiment towards a company's design and decisions often correlates with its financial performance; positive results lead to praise, while negative results lead to criticism [2]. Group 3: Competitive Landscape - Tesla's first-generation EV design has set a standard in the industry for the past decade, focusing on low drag, good handling, low energy consumption, and long range [2][3]. - Li Auto has built upon Tesla's design principles, potentially leading the industry for the next 5-10 years due to the significant user value of its design approach [3]. Group 4: Technical Aspects - Li Auto has not surpassed Tesla in low drag, handling, energy efficiency, or range, as these aspects are largely dictated by physical laws and design choices [4]. - Xiaomi's SU7 MAX is designed to match Tesla's Model 3 Performance in handling, indicating its capability to achieve similar performance levels [5]. - Li Auto's approach to charging infrastructure and design after removing the engine is seen as a competitive advantage, focusing on user experience with fast charging capabilities [5][6]. Group 5: User Value Considerations - Li Auto prioritizes internal space over front trunk space, believing that maximizing internal space will provide greater user value, especially with the future of autonomous driving [6]. - The design choices made by Li Auto reflect a belief that internal space will be more valuable than aesthetic considerations derived from traditional vehicle designs [6].

Core Viewpoint - The article emphasizes the upward trend in the passenger car market, driven by new vehicle launches and consumer demand, particularly in the context of the ongoing transition to electric and intelligent vehicles [5][17][18]. Weekly Data - In the fourth week of June 2025, passenger car sales reached 579,000 units, representing a year-on-year increase of 8.0% and a month-on-month increase of 3.7% [1][38]. - New energy vehicle sales were 298,000 units, with a year-on-year increase of 26.7% and a month-on-month increase of 4.4%. The penetration rate for new energy vehicles was 51.6%, up 0.3 percentage points from the previous month [1]. Market Performance - The A-share automotive sector rose by 0.65% from June 30 to July 4, underperforming the CSI 300 index, which increased by 1.80% [2][31]. - Among sub-sectors, commercial passenger vehicles and motorcycle segments performed well, with increases of 4.91% and 5.68%, respectively [2][31]. Investment Recommendations - The article suggests focusing on high-quality domestic companies that are accelerating in smart technology and globalization, recommending companies such as Geely, BYD, Li Auto, Xiaomi, and Xpeng [3][6][18]. - For the auto parts sector, it highlights the potential of companies involved in intelligent driving and new energy vehicle supply chains, recommending firms like Berteli, Horizon Robotics, and Top Group [6][19]. Industry Analysis - In 2024, 17 Chinese auto parts companies made it into the global top 100, generating a total revenue of 110.4 billion yuan, which accounts for 11.7% of the global top 100 auto parts companies [4][16]. - The article notes that the Chinese auto parts industry is still significantly behind the vehicle manufacturing sector, indicating substantial growth potential in the future [4][12][16]. Passenger Vehicle Market Outlook - The article indicates a positive outlook for the passenger vehicle market, driven by new model launches and easing consumer hesitation due to recent promotional activities by manufacturers [5][17]. - The introduction of new models like the Xpeng G7 and the Leapmotor B01 is expected to enhance market dynamics, with significant pre-orders reported [5][17]. Electric Vehicle and Intelligent Driving Trends - The intelligent driving sector is experiencing a bifurcation, with affordable options gaining traction in the 150,000 yuan market, while high-end models are evolving towards multi-modal integration [5][17][19]. - The article anticipates that 2025 will mark a pivotal year for intelligent driving technology, with widespread adoption expected [19]. Motorcycle Market Insights - The motorcycle market is witnessing growth, particularly in the mid-to-large displacement segment, with sales of over 100,000 units in May 2025, reflecting a year-on-year increase of 31.1% [23]. - The article recommends focusing on leading companies in this segment, such as Chunfeng Power, as the market continues to expand [23]. Heavy Truck Market Dynamics - The heavy truck market is expected to benefit from expanded subsidy policies aimed at replacing older vehicles, with sales figures showing a year-on-year increase of 6.0% in May 2025 [24][25]. - The article suggests that the combination of natural gas truck adoption and policy support will drive demand upward, recommending companies like China National Heavy Duty Truck Group [25]. Tire Industry Outlook - The tire industry is positioned for growth, with strong demand and low valuations, as well as ongoing globalization efforts by leading companies [26][29]. - The article highlights the potential for significant performance improvements in tire companies due to advancements in smart manufacturing and product diversification [26][29].

Investment Rating - The report maintains a "Recommendation" rating for the automotive industry, indicating a positive outlook for the sector [4]. Core Insights - The automotive industry saw a slight increase of 0.2% from June 29 to July 5, with various new energy vehicle manufacturers reporting significant sales growth [1][22]. - Notable performances include Leap Motor's delivery of 48,000 units in June, a year-on-year increase of over 138%, and Xiaopeng Motors' delivery of 35,000 units, a year-on-year surge of 224% [22]. - Changan Automobile plans to establish a factory in Europe to support its sales strategy, aiming to expand into at least 10 European markets by the end of 2025 [27]. - BYD launched its flagship luxury MPV, the M9, in Mexico, marking a significant step in its high-end new energy market strategy [23]. Market Performance Overview - The automotive sector's overall market performance was positive, with secondary segments like motorcycles and commercial vehicles showing notable increases of 5.1% and 1.5%, respectively [11]. - The report highlights that the automotive industry has a total of 259 listed companies with a total market capitalization of 4,051.4 billion [4]. Company-Specific Developments - Leap Motor's June deliveries reached 48,000 units, while Hongmeng Zhixing delivered 53,000 units, and the Wanjie brand delivered 45,000 units [22]. - The report emphasizes the strong sales potential of models like the Changan S800, which achieved over 6,500 pre-orders in its first month [23]. - The report recommends focusing on companies with strong sales performance or potential blockbuster vehicles, including BYD, Seres, Great Wall Motors, and Jianghuai Automobile [8]. Recent Vehicle Launches - Xiaopeng G7, a new AI smart family SUV, was launched with a price range of 195,800 to 225,800 yuan, featuring advanced AI capabilities [26]. - The report also notes the upcoming launches of new models from various manufacturers, including the i8 from Ideal Motors and the B01 from Leap Motor [21].

Core Insights - The article highlights the evolution of China's electric vehicle industry, focusing on Li Auto's journey from a startup to a leading player with over one million vehicle deliveries and significant revenue growth [3][10] - It emphasizes the importance of supply chain management and collaboration in enhancing the competitiveness of Chinese automotive companies [5][10] Group 1: Li Auto's Development - Li Auto has transformed from facing industry challenges to becoming a key player in the automotive supply chain, contributing to the resilience of China's automotive industry [3][9] - The company's approach is rooted in respecting users, the automotive industry, and partners, which has driven its success in building a robust supply chain [5][10] Group 2: Supply Chain Innovation - Li Auto's development of the "Magic Carpet" air suspension system exemplifies its commitment to innovation and quality, marking it as the first Chinese company to independently develop and mass-produce such technology [9][10] - The collaboration with local suppliers, such as Konghui Technology and Baolong Technology, has led to significant market share gains, with these suppliers achieving over 60% of the air suspension market by 2024 [9][10] Group 3: Collaborative Culture - Li Auto's cooperative culture has evolved from F.R.E.E. (Fairness, Respect, Equality, Commitment) to W.I.N. (Win-win, Innovation, Linkage), fostering a collaborative environment for innovation [10][11] - The company actively engages with partners through events like the "Co-creation Conference" to address industry challenges and align on long-term strategies [10][11] Group 4: Technological Advancements - Li Auto is leveraging AI technology to further transform the automotive industry, with plans to open-source its self-developed Star Ring OS in April 2025, enhancing collaboration with suppliers [13] - The integration of the Star Ring OS is expected to improve product development efficiency and risk management for suppliers [13]

Core Insights - The "Su Super League" has seen a significant increase in sponsorship, with the number of sponsors rising from 6 on May 10 to 27 by July 4, indicating strong commercial interest and growth in the league [1] Sponsorship Details - As of July 4, the "Su Super League" has 27 sponsors, including major brands such as JD.com, Xiaomi, Ideal, Yili, and KFC [1] - The breakdown of sponsors includes 1 title sponsor, 8 official strategic partners, 7 official partners, 4 official sponsors, and 7 official suppliers, along with 2 public welfare support units [1] - The number of sponsors increased from 19 on June 18, showcasing rapid growth within a short period [1] Team Sponsorship - Each of the 13 teams participating in the "Su Super League" also has its own sponsors, further enhancing the commercial ecosystem surrounding the league [1]

Group 1 - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 4, 2025 [1] - Alibaba leads the list with a market capitalization of approximately $259.36 billion [3] - Xiaomi and Pinduoduo follow, with market capitalizations of about $188.79 billion and $147.06 billion respectively [3] Group 2 - Meituan and NetEase rank sixth and seventh, with market capitalizations of $93.88 billion and $84.12 billion respectively [4] - Other notable companies include JD.com at $46.23 billion and Baidu at $29.68 billion [4] - The list includes a variety of companies from different sectors, such as Ideal Auto and Kuaishou, with market capitalizations of $27.77 billion and $32.88 billion respectively [4][5] Group 3 - The total market capitalization of the top 50 companies reflects the ongoing growth and competition within the Chinese technology sector [1] - The rankings are calculated based on the latest exchange rates, indicating the dynamic nature of the market [6] - Companies like NIO and Perfect World also feature in the rankings, showcasing the diversity of the industry [5][6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6][7]. Core Views - In June 2025, the company sold 36,279 vehicles, representing a year-on-year decline of 24.1% and a month-on-month decline of 11.2%. However, the sales slightly exceeded the previously adjusted delivery guidance [2][8]. - The company's product advantages and brand design are well recognized, and the "dual-energy strategy" is expected to further enhance its competitive edge. The upcoming new models are anticipated to significantly contribute to sales growth [6][8]. - The company is projected to achieve a net profit attributable to shareholders (GAAP) of 8.3 billion, 12.4 billion, and 15.7 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (PE) ratios of 25.1X, 16.8X, and 13.3X. The non-GAAP net profit estimates are 10.3 billion, 14.4 billion, and 17.7 billion yuan, with PE ratios of 20.3X, 14.5X, and 11.8X [6]. Summary by Sections Sales Performance - The company reported a total of 111,000 vehicles sold in the second quarter of 2025, marking a year-on-year increase of 2.3% and a quarter-on-quarter increase of 19.6%. Cumulatively, 204,000 vehicles were sold in the first half of 2025, reflecting a year-on-year growth of 7.9% [8]. Product and Technology Development - The company is set to launch its first pure electric SUV, the i8, in July 2025, followed by the i6 in September 2025. This will expand its product lineup to include four range-extended electric SUVs and two high-voltage pure electric SUVs [6][8]. - The company has established over 10,000 supercharging stations nationwide, with 2,851 stations operational as of June 2025, and plans to increase this number to 4,000 by the end of the year [8]. Market Position and Strategy - The company is focusing on enhancing its direct sales channels, with 530 retail centers established across 151 cities as of June 2025. This is an increase of 24 centers from the previous month [8].