Minsheng Securities·2025-06-09 00:30Investment 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 Views - The report highlights the strong demand for passenger vehicles, with a notable increase in sales and a significant rise in new energy vehicle penetration [3][10]. - It emphasizes the acceleration of intelligent driving technology and its adoption across different market segments, indicating a shift towards efficiency optimization rather than just hardware competition [2][9]. - The report suggests that the automotive sector is experiencing a recovery phase, driven by new vehicle launches and supportive government policies aimed at stimulating consumer demand [11][20]. Summary by Sections 1. Weekly Insights - Passenger vehicle demand is improving, with intelligent driving technology gaining traction and high-end models evolving [9]. - The report recommends focusing on quality domestic car manufacturers such as Geely, BYD, and Xpeng, which are expected to benefit from the ongoing trends in smart and globalized automotive solutions [11]. 2. Market Performance - The automotive sector underperformed compared to the broader market, with a slight decline in stock prices during the reporting period [26]. 3. Weekly 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 [3][10]. - The penetration rate of new energy vehicles was reported at 53.1%, indicating a slight decrease from the previous month [3][10]. 4. Key Companies and Recommendations - The report identifies key companies in the automotive parts sector, recommending firms involved in the new energy vehicle supply chain and intelligent driving technologies [4][12]. - Specific recommendations include companies like Berteli, Top Group, and New Spring, which are positioned well within the evolving market landscape [4][12]. 5. Policy Impact - Recent government policies aimed at promoting vehicle upgrades and stimulating demand are expected to support the automotive market, particularly for new energy vehicles [20][39].