Guohai Securities·2025-02-17 15:41Investment Rating - The report maintains a "Recommended" investment rating for the automotive industry [1] Core Insights - The automotive sector is expected to enter a phase of sales prosperity, event catalysis, and industry trend resonance, with continued optimism for investment opportunities in the automotive sector [3][4][16] Summary by Sections Recent Developments - BYD held a strategic conference on intelligent driving, launching the "Heavenly Eye" advanced driving system, which aims to democratize high-level autonomous driving technology across various models [2][13] - BAIC Blue Valley plans to rebrand as BAIC Extreme Fox and enhance collaboration with Huawei, focusing on its core business in new energy vehicles [3][14] Market Performance - From February 10 to 14, 2025, the A-share automotive sector underperformed the Shanghai Composite Index, with the automotive index rising by 1.2% compared to the Shanghai Composite's 1.3% [1][17] - The performance of individual stocks in the Hong Kong market varied, with Li Auto and Xpeng Motors experiencing declines of 1.6% and 6.2%, respectively [1][17] Sales and Policy Impact - The 2024 vehicle trade-in policy has positively influenced passenger car sales, with expectations for continued support in 2025 [4][16] - The report anticipates that the automotive sector will see improved monthly sales year-on-year from February to April 2025, driven by new vehicle launches and technological advancements [4][16] Investment Opportunities - The report identifies several investment opportunities, including: 1. Companies benefiting from the high-end market segment, such as Li Auto, JAC Motors, Geely, BYD, and Great Wall Motors [16] 2. Companies involved in the affordable high-level autonomous driving sector, including Xpeng Motors and Huayang Group [16] 3. Companies positioned for breakthroughs in robotics production, such as Top Group and Sanhua Intelligent Control [16] 4. Quality auto parts manufacturers like Fuyao Glass and Xingyu Co., which are expected to perform well despite a complex export environment [16] 5. Commercial vehicle leaders like China National Heavy Duty Truck Group and Yutong Bus, which are anticipated to benefit from recovering demand [16]