Shengang Securities·2025-02-18 09:35Investment Rating - The report suggests a focus on undervalued leading companies in the automotive sector due to performance improvement opportunities, particularly in the new energy and intelligent vehicle segments [3][13]. Core Insights - BYD has launched its "Universal Intelligent Driving Strategy," introducing the "Tian Shen Zhi Yan" technology matrix, which will equip all its models with advanced driving technologies, making high-level intelligent driving accessible to a broader audience [1][9]. - BYD has sold over 4.4 million vehicles equipped with L2 and above driving assistance, establishing the largest vehicle cloud database in China, and has the largest R&D team globally with over 110,000 engineers, including more than 5,000 dedicated to intelligent driving [2][11]. - The report emphasizes the potential for the automotive industry to rebound as economic conditions normalize and stimulus policies are implemented, with expectations for sustained growth in production and sales [13][17]. Summary by Sections 1. Intelligent Driving Technology - BYD's "Tian Shen Zhi Yan" includes three technology solutions: DiPilot 600, DiPilot 300, and DiPilot 100, catering to different vehicle models and price ranges [1][9]. - The DiPilot 100, equipped with advanced perception hardware and algorithms, aims to cover essential user scenarios [1][9]. 2. Investment Strategy and Focus - The report recommends focusing on leading companies in the automotive sector, particularly those with a first-mover advantage in new energy vehicles, such as BYD, Changan Automobile, Geely, and Li Auto [3][13]. - Key companies to watch include BYD (20%), Li Auto (20%), Top Group (20%), Desay SV (20%), and Shangsheng Electronics (20%) [14][15]. 3. Market Review - The automotive sector's weekly performance showed a 1.19% increase, ranking third among 31 sectors, with the overall market indices also reflecting positive trends [16][19]. - The report highlights the performance of various automotive sub-sectors, noting significant movements in passenger vehicles and automotive services [16][23]. 4. Material and Component Prices - The report includes insights into the prices of key automotive materials and components, such as battery prices and raw materials like aluminum and copper, which are critical for the industry [25][27].