Guohai Securities·2025-06-02 13:02Investment Rating - The report maintains a "Recommended" rating for the automotive industry [1] Core Views - The automotive sector is expected to benefit from the continuation of the vehicle trade-in policy, which supports upward consumer spending [22] - The report highlights a new phase of domestic brands entering high-end markets, with companies offering quality vehicles priced above 300,000 yuan likely to benefit significantly [22] - The report emphasizes the potential for high-level autonomous driving technology to become more affordable, increasing its penetration rate [22] Summary by Sections Recent Developments - The launch of the Zun Jie S800, priced between 708,000 to 1,018,000 yuan, aims to break the foreign monopoly in the luxury car segment [8][18] - Xiaopeng Motors introduced the MONA M03 Max version starting at 129,800 yuan, with strong sales performance noted [9][19] - BYD, Geely, and Chery have initiated limited-time promotional offers to boost sales [10][20] Market Performance - The automotive sector underperformed compared to the Shanghai Composite Index from May 26 to May 30, with a decline of 4.1% [11][23] - The report notes a significant drop in the stock prices of major automotive companies during the same period [11][23] Company Focus and Earnings Forecast - Ideal Auto reported Q1 2025 revenue of 25.9 billion yuan, a year-on-year increase of 1.1%, with a projected delivery of 123,000 to 128,000 vehicles in Q2 2025 [21][12] - The report recommends several companies, including Ideal Auto, Jianghuai Auto, Geely, BYD, and Great Wall Motors, as key players to watch in the high-end market [22] Industry Indicators - The report tracks various industry indicators, including monthly sales and inventory levels, to assess market health [17][18]