Changjiang Securities·2025-05-09 05:16Investment Rating - The report maintains a "Positive" investment rating for the automotive industry [9] Core Insights - The automotive industry is experiencing steady growth in sales, with a significant increase in the proportion of fund holdings, indicating a sustained overweight in the sector [4][15] - In Q1 2025, wholesale sales of passenger vehicles reached 6.73 million units, showing a year-on-year growth of 18.4%, supported by robust domestic demand and the continuation of the "old-for-new" policy [2][17] - The report highlights a strong preference from domestic and foreign investors for leading companies and high-growth stocks within the automotive sector, particularly in the context of globalization and electric intelligent transformation [5][6][29] Summary by Sections Industry Overview - In Q1 2025, the fund holding ratio for the automotive industry increased to 7.15%, up by 1.06 percentage points from the previous quarter, with an overall overweight of 2.44% compared to the market capitalization of automotive stocks in A-shares [4][15] - The automotive manufacturing allocation ratio rose to 3.56%, while the parts allocation ratio increased to 3.58% [4][15] Domestic Investment - The top fifteen domestic fund holdings in the automotive sector include BYD, Fuyao Glass, and Seres, reflecting a preference for industry leaders and high-growth stocks [5][22] - The report notes that the domestic investment landscape is influenced by the industry's overall prosperity and the ongoing electric and intelligent transformation [5][22] Foreign Investment - As of March 31, 2025, foreign investment in the automotive sector reached 141.7 billion yuan, with a slight increase in holding ratio from 6.6% to 9.8% [6][29] - Foreign investors are particularly focused on companies with strong profitability and growth potential, with notable increases in holdings for Weichai Power and Fawer Automotive [6][34] Investment Recommendations - The report recommends focusing on companies with strong intelligent driving capabilities, such as BYD, Xpeng Motors, and Geely, as well as those involved in the robotics transformation, like Top Group and New Spring [7][52] - The continuation of the "old-for-new" policy is expected to stimulate demand in the commercial vehicle sector, with a strong recovery anticipated in April [7][52]