Minsheng Securities·2025-06-08 15:31Investment Rating - The report maintains a positive outlook on the automotive and automotive parts industry, particularly focusing on intelligent driving and high-end vehicle transitions [6]. Core Viewpoints - The demand for passenger vehicles is improving, with a notable increase in sales and a strong performance from new energy vehicles. The intelligent driving sector is expected to accelerate its adoption, driven by competitive pricing and technological advancements [2][3]. - The report highlights the importance of strong product cycles and recommends focusing on companies with robust fundamentals and intelligent driving capabilities [3][10]. Summary by Sections 1. Weekly Insights - The report emphasizes the synergy between the down-market penetration of intelligent driving and the leap to high-end models, predicting a rapid adoption of intelligent driving technologies [2][9]. - It suggests that companies like Geely, BYD, and Xpeng are well-positioned to benefit from these trends [3][10]. 2. Market Performance - The automotive sector underperformed the market, with a slight decline of 0.01% in the A-share automotive sector during the week of June 3-6, 2025, ranking 25th among sub-industries [26]. 3. Sales Data - In the fifth week of May 2025, passenger vehicle sales reached 466,000 units, marking an 18.3% year-on-year increase and a 16.7% month-on-month increase. New energy vehicle penetration was at 53.1% [3][10]. 4. Key Companies and Recommendations - The report recommends focusing on companies with strong product cycles and intelligent driving capabilities, including Geely, BYD, Xpeng, and Li Auto [3][10]. - For the parts sector, it suggests investing in companies like Top Group and New Spring Co., which are well-positioned in the new energy vehicle supply chain [4][12]. 5. Intelligent Driving and Electric Vehicles - The report anticipates a significant shift in the intelligent driving landscape, with companies like BYD leading the charge in technology and market penetration [13]. - It highlights the importance of the new energy vehicle supply chain and suggests that companies with self-research capabilities will benefit from the evolving market dynamics [12][13]. 6. Motorcycles and Heavy Trucks - The motorcycle market is experiencing growth, particularly in the mid-to-large displacement segment, with companies like Chunfeng Power being recommended [17][19]. - The heavy truck market is expected to recover due to new policies supporting the replacement of older vehicles, with recommendations for companies like China National Heavy Duty Truck Group [20][21]. 7. Tire Industry - The tire industry is projected to benefit from ongoing globalization and demand recovery, with recommendations for leading companies like Sailun Tire and high-growth firms like Senqilin [22][25].