Minsheng Securities·2025-04-20 08:23Investment Rating - The report maintains a positive investment rating for the automotive and automotive parts industry, particularly focusing on quality domestic companies such as BYD, Geely, and Xpeng [5]. Core Views - The automotive industry is undergoing significant transformation driven by smart electric vehicles and autonomous driving technologies, with a strong emphasis on innovation and competition among domestic brands [10][12]. - The upcoming Shanghai Auto Show is expected to showcase advancements in intelligent driving and high-end models, indicating a shift towards premium offerings in the market [11]. - The report highlights the importance of new vehicle launches and government policies in stimulating demand, particularly in the passenger vehicle segment [12][43]. Summary by Sections Weekly Insights - The automotive sector underperformed the market, with a decline of 0.39% in the A-share automotive sector from April 14 to April 18, ranking 28th among sub-industries [34]. - The report suggests focusing on a core portfolio of companies including BYD, Geely, Xpeng, and Xiaomi, as they are well-positioned to benefit from the ongoing industry changes [10]. Passenger Vehicles - Passenger vehicle sales reached 351,000 units in the second week of April 2025, showing a year-on-year increase of 13.1% and a month-on-month increase of 4.0% [42]. - The penetration rate of new energy vehicles (NEVs) reached 52.8%, up 2.8 percentage points from the previous month, indicating strong demand driven by policy support [42]. - The report emphasizes the positive outlook for companies with strong fundamentals and intelligent driving capabilities, recommending BYD, Geely, and Xpeng [12][13]. New Energy and Intelligent Vehicles - The report notes that 2025 is expected to be a pivotal year for intelligent driving, with BYD leading the charge by equipping its entire lineup with advanced driving systems [12][15]. - The introduction of new models such as the Xpeng G7 and the Li Auto i8 is anticipated to catalyze market growth and enhance valuations in the sector [12]. Components and Supply Chain - The report identifies key players in the automotive parts sector, recommending companies like Top Group and New Spring for their strong positioning in the supply chain [24]. - It highlights the potential for growth in the smart driving and intelligent cockpit segments, suggesting investments in companies like Bertley and Horizon Robotics [15]. Motorcycles - The motorcycle market is experiencing significant growth, with sales of mid-to-large displacement motorcycles increasing by 68.4% year-on-year in March 2025 [25]. - The report recommends focusing on leading companies in this segment, particularly Spring Power, which has shown strong market performance [26]. Heavy Trucks - The heavy truck market is expected to recover due to expanded government subsidies for replacing old vehicles, with sales in March 2025 reaching 111,000 units, a month-on-month increase of 37% [27][28]. - The report suggests monitoring companies like China National Heavy Duty Truck for potential growth opportunities in this sector [29]. Tires - The tire industry is projected to benefit from high demand and ongoing globalization, with leading companies expected to expand their production capabilities overseas [30][31]. - The report recommends focusing on leading tire manufacturers such as Sailun and high-growth companies like Senkiren [32].