BOCOM International·2025-04-10 12:23Industry Rating - The automotive industry is rated as "Leading" [1] Core Insights - The automotive market showed signs of recovery in March, with retail sales of passenger vehicles increasing by 14.4% year-on-year, reaching 1.94 million units [4] - The penetration rate of new energy vehicles (NEVs) rose to 51.1% in March, with retail sales of NEVs recording 991,000 units, a year-on-year increase of 36.4% [4] - The report highlights the positive impact of trade shows and vehicle replacement policies on sales performance in April [4] Summary by Sections Investment Ratings Overview - Companies such as BYD, Great Wall Motors, and Geely are rated as "Buy" with target prices significantly above current prices, indicating strong potential for growth [2][11] - The average price-to-earnings ratio for the covered companies is projected to be 14.5 for FY25E [2] Market Performance - In March, domestic brands outperformed the overall market, with retail sales of 1.22 million units, a year-on-year increase of 31% [4] - The report notes that the share of domestic brands in the retail market increased by 7.7 percentage points to 62.7% [4] New Energy Vehicle Insights - The report indicates that the export performance of NEVs is strong, with 143,000 units exported in March, accounting for 36.6% of total exports [4] - Domestic brands accounted for 87% of total vehicle exports, with a year-on-year increase of 1% [4] Future Outlook - The upcoming Shanghai Auto Show from April 23 to May 2 is expected to further stimulate automotive consumption, alongside local consumption promotion policies [4] - The report suggests focusing on quality stocks in the passenger vehicle sector, particularly BYD and XPeng Motors, due to their strong market positions and growth potential [4]