Xin Lang Cai Jing·2026-02-01 12:35Core Viewpoint - The market remains cautious, observing the recovery of terminal demand and the impact of policies and costs on profitability, with increased volatility in the non-ferrous sector affecting short-term pricing in the upstream and midstream segments [1] Investment Recommendations - Complete Vehicles: Recommended stocks include Geely Automobile, JAC Motors, and BYD. Geely is favored due to its low valuation of over 6 times, with expectations of better-than-expected domestic profitability. JAC's S800 model shows stable order performance, and the company plans to launch 2-3 new models this year [2] - Auto Parts: - Robotics sector continues to be a catalyst, with recommendations for Foresight Technology, Minth Group, Top Group, Yinlun Machinery, Haoneng Co., Shuanghuan Transmission, and New Spring Co., with a suggestion to pay attention to Joyson Electronics - AI/Smart Driving is a key area with potential supply order catalysts from policy support and Nvidia's involvement, recommending Horizon Robotics and Hesai Technology, while suggesting to monitor SOTERIA, Black Sesame Technologies, and Pony.ai - Liquid cooling orders are clear, with continued recommendations for Minth Group, Yinlun Machinery, and Lingyun Industrial, and a suggestion to watch Feilong Co. [2] - Heavy Trucks: Weichai Power has shown strong performance, reflecting market recognition of its position in AIDC diesel engines and natural gas generators, with continued recommendations. Concerns over short-term shareholder reductions in China National Heavy Duty Truck have dissipated, suggesting a focus on fundamentals [2] Data Tracking - In late January, industry discounts decreased month-on-month, with a discount rate of 9.5%, up 0.6 percentage points year-on-year and down 0.1 percentage points month-on-month. The discount amount was 21,541 yuan, up 1,294 yuan year-on-year and down 718 yuan month-on-month [3] - December wholesale and retail sales of passenger vehicles declined year-on-year, with wholesale sales at 2.85 million units, down 8.7% year-on-year and 6.3% month-on-month. Retail sales of domestic passenger vehicles were 2.28 million units, down 16.8% year-on-year but up 13.7% month-on-month [3] Market Performance - The automotive sector saw a decline of 5.12% this week, ranking 28th out of 29 sectors. The overall index performance included a decrease of 0.44% for the Shanghai Composite Index, an increase of 0.08% for the CSI 300, and a decrease of 0.09% for the ChiNext Index. The automotive index's performance included a drop of 5.12% for the automotive sector, 6.70% for parts, 3.64% for passenger vehicles, 1.10% for commercial vehicles, and 3.42% for circulation services [6]