Shenwan Hongyuan Securities·2025-06-22 15:20Investment Rating - The report maintains a positive outlook on the mid-to-high-end automotive market, particularly focusing on strong alpha companies such as Li Auto, JAC, Xiaomi, and Seres [2] Core Insights - Li Auto i6 has been officially listed in the Ministry of Industry and Information Technology's directory, marking its entry into the competitive mid-range market, with a projected sales volume of approximately 400,000 units in 2024 [2] - Xiaomi's Yu7 is set to launch on June 26, with a pre-registration volume three times that of the Su7, indicating strong market interest and potential to challenge established brands [2] - The report emphasizes the importance of monitoring the performance of strong alpha companies and their supply chain partners amid ongoing state-owned enterprise reforms [2] Industry Updates - Retail sales of passenger vehicles reached 450,000 units in the 24th week of 2025, reflecting a 26.76% increase month-over-month. New energy vehicle sales accounted for 248,000 units, with a penetration rate of 55.11% [2] - Traditional raw material prices have increased, while new energy raw material prices have decreased, indicating a shift in cost dynamics within the industry [2] - The total transaction value in the automotive sector for the week was 382.26 billion yuan, a decrease of 20.84% from the previous week [2] Market Situation - The automotive industry index closed at 6746.19 points, down 2.56% for the week, underperforming compared to the Shanghai and Shenzhen 300 index, which fell by 0.45% [10] - A total of 45 stocks in the automotive sector rose, while 247 fell, with the largest gainers being Yishijingmi, Zhaofeng Co., and Hailian Jinhui, which saw increases of 25.2%, 11.4%, and 10.7% respectively [16] Investment Analysis - The report recommends focusing on domestic strong alpha manufacturers such as BYD, Geely, and XPeng, as well as companies involved in intelligent technology like JAC and Seres [2] - It highlights the potential of state-owned enterprise integration, suggesting attention to SAIC Group, Dongfeng Motor, and Changan Automobile [2] - The report also identifies component manufacturers with strong growth potential and overseas expansion capabilities, recommending companies like Fuyao Glass and New Spring [2]