Haitong Securities International·2025-06-27 09:19Investment Rating - The report assigns an "Outperform" rating for the industry, suggesting a positive outlook for investment opportunities [2]. Core Insights - The launch of Xiaomi YU7 is expected to structurally change the prosperity of the automotive parts industry, alleviating previous market concerns regarding the domestic passenger car market in late 2025 to 2026 [4][10]. - The YU7 has received a strong initial response, with over 289,000 orders within the first hour of its launch, indicating significant market demand [9]. - The report highlights potential investment opportunities in the supply chain of YU7, specifically mentioning companies such as Wuxi Zhenhua, Desay SV, Huayang Group, and Nexteer Automotive, which are expected to benefit from increased revenue as YU7 production ramps up [10]. Summary by Sections Investment Advice - Following the launch of Xiaomi YU7, there is a surge in orders, indicating a new opportunity in the supply chain. The report suggests focusing on the supply chain companies associated with YU7 [7][10]. Product Details - Xiaomi YU7 is priced starting at RMB 253,500, featuring advanced specifications such as the Xiaomi Super Motor V6s Plus, a 0-100 km/h acceleration time of 3.23 seconds, and a maximum range of 835 km [8][9]. - The YU7 is available in three configurations: YU7 at RMB 253,500, YU7 Pro at RMB 279,900, and YU7 Max at RMB 329,900, which are considered competitive in the market [8]. Market Potential - The report estimates that YU7's annual sales could reach between 300,000 to 400,000 units, with the potential to drive additional market growth in the RMB 200,000 to 300,000 electric vehicle segment, which is substantial [9][10]. - The total SUV market in the RMB 200,000 to 300,000 price range is estimated to exceed 1 million units, indicating a significant opportunity for YU7 to capture market share [9].