Core Viewpoint - The automotive market in China is expected to maintain strong growth in 2025, driven by government policies promoting consumption, with passenger vehicle growth projected at 11% and significant recovery in both truck and bus markets [1][2]. Group 1: Market Trends - The automotive market is experiencing a clear differentiation between passenger and commercial vehicles, with passenger vehicle consumption improving while commercial vehicle sales are weaker [4][6]. - In the first 11 months of 2025, total automotive sales reached 30.94 million units, with a cumulative growth rate of 11% [6]. - November 2025 saw total automotive sales of 3.42 million units, reflecting a year-on-year growth of 3% [6]. Group 2: Company Performance - There is significant performance differentiation among major automotive groups, with some state-owned enterprises lagging behind while companies like BYD and Chery show strong performance [9][12]. - The competitive landscape is shifting, with private enterprises like Geely, BYD, and Chery becoming the main players in the industry, indicating a sustainable trend [12][13]. Group 3: Passenger Vehicle Dynamics - Cumulative sales of narrow passenger vehicles reached 26.75 million units in the first 11 months of 2025, with an 11% growth rate [17]. - In November 2025, narrow passenger vehicle sales totaled 3 million units, showing a year-on-year increase of 2% [17][19]. - The retail sales of narrow passenger vehicles maintained a year-on-year growth of 5% since 2023, although a downward trend was observed from September 2025 [21]. Group 4: New Energy Vehicle Trends - In November 2025, sales of new energy passenger vehicles reached 1.71 million units, marking a year-on-year increase of 19% [24]. - Cumulative wholesale sales of new energy passenger vehicles from January to November 2025 reached 13.77 million units, reflecting a year-on-year growth of 28% [24][26]. Group 5: Commercial Vehicle Insights - The commercial vehicle market is characterized by structural growth driven by equipment renewal subsidies, with high subsidies accelerating the electrification of logistics and transportation [1][4]. - In the first 11 months of 2025, cumulative truck sales reached 3.35 million units, with a growth rate of 10% [37]. - November 2025 saw truck sales of 340,000 units, representing a year-on-year increase of 26% [37][39].

Core Viewpoint - The automotive market is shifting towards a trend of "price reduction and moderate promotions," with retail sales of passenger cars declining by 8% in November 2025, significantly lower than the 2% growth in wholesale sales [1] Group 1: Market Trends - The retail sales of passenger cars fell by 8% in November 2025, while wholesale sales increased by 2% [1] - The A0-class sedans and C-class SUVs became the main retail drivers in November, with strong performance in high-end SUVs [1] - The retail environment is influenced by consumer urgency due to the expiration of tax exemptions for new energy vehicles, leading to increased sales in December [2] Group 2: Economic Vehicle Market Performance - A00-class sedans saw wholesale of 171,900 units in November 2025, with a year-on-year decline of 1% and a month-on-month increase of 4% [4] - A0-class sedans had wholesale of 183,500 units in November 2025, showing a year-on-year growth of 25% [5] - A0-class SUVs experienced a wholesale decline of 9% year-on-year in November 2025, with retail sales also down by 22% [6] Group 3: A-Class Vehicle Market - A-class sedans had wholesale of 445,800 units in November 2025, with a year-on-year decline of 7% [8] - A-class SUVs had wholesale of 880,000 units in November 2025, with a year-on-year decline of 2% [9] Group 4: B-Class Vehicle Market - B-class sedans had wholesale of 380,500 units in November 2025, with a year-on-year growth of 3% [10] - B-class SUVs saw wholesale of 454,200 units in November 2025, with a year-on-year growth of 10% [11] - The high-end SUV market is witnessing a rapid rise in autonomous new energy vehicles, while traditional fuel vehicles are losing their competitive edge [12] Group 5: MPV Market Trends - B-class MPVs had wholesale of 45,100 units in November 2025, with a year-on-year growth of 40% [13] - C-class MPVs experienced a year-on-year decline of 20% in wholesale in November 2025 [14] - The MPV market is transitioning from a high-growth phase to a low-growth trend, with strong performances from brands like BYD and Tengshi [14]

Group 1 - The Hong Kong IPO market has raised funds amounting to 2.1 times the total for the entire year of 2024, with expectations for the Hong Kong Stock Exchange to regain the top position in IPO financing by 2025, projecting over HKD 300 billion in IPO fundraising for next year [1] - The trading volume of placement and convertible bond products has significantly increased year-on-year, with major blue-chip companies such as BYD, Xiaomi, Alibaba, China Pacific Insurance, Ping An Insurance, Chow Tai Fook Jewelry, and NIO completing large-scale transactions exceeding USD 1 billion [1] Group 2 - The primary market for Hong Kong stocks is showing a strong recovery, with influential companies actively responding to the national strategy to develop Hong Kong's capital market, leading to the execution of large-scale financing projects [2] - CATL's IPO raised USD 5.3 billion, becoming the largest IPO globally in 2023, and has facilitated other leading companies like Zijin Mining, Sany Heavy Industry, Seres, Hansoh Pharmaceutical, Sanhua Intelligent Controls, Haitian Flavoring and Food, and Chery Automobile to complete financing exceeding USD 1 billion, occupying four spots in the global top ten IPOs [2]

Core Viewpoint - Goldman Sachs reports that Horizon Robotics (09660) has seen its HSD (Horizon SuperDrive) solution adopted by multiple new models from Chery (09973), including the Exeed ET5, Fengyun T9, and iCAR V27 [1] Group 1 - Goldman Sachs expects that by 2026, Horizon Robotics will have more models in mass production and secure additional new projects, which will drive an increase in shipment volume [1] - The company anticipates that product mix upgrades will lead to a higher overall average selling price [1] - Goldman Sachs maintains a target price of HKD 15.3 and a "Buy" rating for Horizon Robotics [1]

Core Insights - Chery Automobile showcased multiple new models at a launch event in Abidjan, Ivory Coast, targeting local consumer demand for high cost-performance, safety, and advanced technology vehicles [1] - Tractafric Motors, the local distributor, emphasized its extensive experience in the Ivory Coast market and understanding of local customer needs, which will enhance Chery's competitiveness [1] - Chery has established a strong global presence, with over 15 million users across more than 110 countries, and aims to achieve a total sales volume of 2.6 million units in 2024, including 1.14 million units for export, maintaining its position as the top Chinese passenger car exporter for 22 consecutive years [1]

Core Viewpoint - Huawei's collaboration with Chery and other brands aims to enhance the quality and competitiveness of Chinese automotive products, moving away from low-cost competition and towards high-end offerings [1][2]. Group 1: Collaboration and Strategy - Huawei's partnership with Chery and other brands is described as a strong alliance, with Chery's chairman emphasizing Huawei as a significant contributor to the automotive industry [1][2]. - The collaboration is likened to a basketball game, where Huawei is seen as the offensive player focusing on technology and innovation, while Chery takes on the defensive role, ensuring safety and quality [1][2]. Group 2: Industry Context - The Chinese automotive industry is currently facing challenges related to low-price competition, referred to as "price war," which the partnership aims to address by promoting high-quality development [1][2]. - Chery's chairman expressed the aspiration for Chinese automotive brands to achieve high-end status comparable to established luxury brands like BMW, Benz, and Audi (BBA), indicating a goal for stronger brand positioning in the market [1][2].

Group 1 - The Shenzhen Stock Exchange announced on December 8 that due to the adjustment of the Hang Seng Composite MidCap Index, the list of eligible securities for the Stock Connect program will be updated [1] - Four companies have been added to the Stock Connect program, effective from December 8, 2025: FWD Group (01828), Aux Group (02580), Sinopharm Group (02591), and Chery Automobile (09973) [1][3] Group 2 - The adjustment includes the addition of FWD Group, Aux Group, Sinopharm Group-B, and Chery Automobile to the Stock Connect program [3]

Core Points - The Shenzhen Stock Exchange announced on December 8 that due to the adjustment of the Hang Seng Composite Midcap Index, the list of eligible securities for the Hong Kong Stock Connect will be updated, effective from December 8, 2025 [1] Group 1: Company Adjustments - Four companies have been added to the Hong Kong Stock Connect: FWD Group (01828), Aux Group (02580), Sinopharm Group (02591), and Chery Automobile (09973) [1][3] - The adjustment reflects the ongoing changes in the market and the inclusion of mid-cap stocks in the investment framework [1]

Core Viewpoint - CICC initiates coverage on Chery Automobile with an "outperform industry" rating and a target price of HKD 42, highlighting its position as a leading Chinese independent automaker with accelerating export and new energy transformation [1] Group 1: Company Performance - Chery Automobile is expected to rank among the top in total sales within the industry for 2024, supported by its multi-powertrain development and multi-brand strategy [1] - The company is projected to release several new models by 2026, which could significantly contribute to its sales growth [1] Group 2: Market Potential - The overseas market is anticipated to become a key driver for Chery's long-term sales and profit growth [1] - CICC forecasts a compound annual growth rate (CAGR) of 22% for earnings per share from 2024 to 2026, with expected earnings per share of RMB 3.32 and RMB 3.88 for the next two years [1]

Core Insights - Chery Automobile reported a total sales volume of 255,809 units in November, a slight decrease of approximately 2% compared to 260,309 units in the same month last year [3] - Cumulative sales for the year reached 2,399,073 units, reflecting an 11% increase from 2,169,588 units in the previous year [3] Brand Performance - **Chery Brand**: November sales were 165,511 units, a 1% increase from 164,225 units year-on-year. Cumulative sales for the year reached 1,543,069 units, up 7% from 1,443,055 units [1][2] - **Exeed Brand**: November sales dropped to 12,021 units, down 24% from 15,898 units year-on-year. Cumulative sales for the year were 109,466 units, a 15% decrease from 128,438 units [2] - **Jetour Brand**: November sales were 55,088 units, a 13% decline from 63,040 units year-on-year. However, cumulative sales for the year increased by 14% to 573,739 units from 502,367 units [2] - **iCAR Brand**: This brand showed significant growth, with November sales reaching 11,428 units, a 99% increase from 5,745 units year-on-year. Cumulative sales for the year were 90,451 units, up 63% from 55,508 units [2] - **Zhijie Brand**: November sales were 11,761 units, a 3% increase from 11,401 units year-on-year. Cumulative sales for the year reached 82,348 units, a substantial 105% increase from 40,220 units [2] Future Outlook - By November 2025, Chery's sales of new energy vehicles are projected to reach 110,017 units, significantly contributing to overall sales. Additionally, export sales are expected to be high at 131,851 units, indicating strong performance in overseas markets [2]