JAC(SH:600418) Great Wall Securities·2025-06-25 08:56Investment Rating - The investment ratings for specific companies in the automotive sector include "Buy" for Asia-Pacific Co., "Hold" for Chang'an Automobile, and "Increase" for several others such as Great Wall Motors and Foton Motor [1][2][3]. Core Insights - The automotive sector experienced a decline of 2.56% from June 16 to June 20, underperforming the CSI 300 index by 2.1 percentage points. The passenger vehicle segment fell by 2.08%, while commercial vehicles and parts also saw declines [10][20]. - A strategic cooperation agreement was signed between Jiangqi Group and Huawei, focusing on smart automotive solutions and digital transformation, aiming to enhance electric, intelligent, and connected vehicle development [3][6][32]. Summary by Sections Market Overview - The automotive sector's performance from June 16 to June 20 showed a decline across various segments, with the overall automotive parts sector down by 2.59% and automotive services down by 4.98% [10][20]. - The retail sales of passenger vehicles in the first half of June increased by 20% year-on-year, but saw a month-on-month decline of 9% [7][37]. Valuation Levels - As of June 20, the automotive industry's PE-TTM was 25.18, down by 0.63 from the previous week. The valuations for passenger vehicles, commercial vehicles, and parts were 25.35, 35.5, and 23.37 respectively [2][11][36]. Key Developments - The strategic partnership between Jiangqi Group and Huawei aims to leverage AI and communication technologies for smart vehicle applications and enhance the group's operational efficiency [3][6][32]. - New energy vehicle retail sales reached 40.2 million units in the first half of June, marking a 38% year-on-year increase, with a penetration rate of 57% [7][37]. Recent Listings - A total of 24 new and updated vehicle models were launched during the week of June 16 to June 20, including models from major manufacturers like Volkswagen and Changan [33][34].