Huaxin Securities·2025-06-29 11:19Investment Rating - The report maintains a "Buy" rating for several companies in the automotive sector, specifically recommending Jianghuai Automobile, Changan Automobile, and others [6][9]. Core Insights - The Ministry of Commerce has launched the "2025 Thousand Counties and Ten Thousand Towns New Energy Vehicle Consumption Season" to stimulate consumption in rural areas, with activities running from July to December 2025 [5]. - The initiative includes four key measures to enhance the adoption of new energy vehicles (NEVs) in rural areas, such as implementing vehicle trade-in policies and improving charging infrastructure [5]. - The new vehicle trade-in subsidy policy offers 20,000 yuan for scrapping eligible old vehicles when purchasing new energy passenger cars and 15,000 yuan for scrapping eligible fuel vehicles [5]. Summary by Sections Market Performance - The automotive sector has shown a performance of -2.3% over the last month, -3.7% over the last three months, and a significant increase of 30.0% over the last year, compared to the Shanghai and Shenzhen 300 index which has increased by 1.6% over the last month, 0.2% over the last three months, and 13.3% over the last year [2][3]. Investment Recommendations - The continuation and optimization of the 2025 vehicle trade-in subsidy policy are expected to further stimulate NEV consumption. The report suggests focusing on domestic brands such as Jianghuai Automobile, Changan Automobile, and others [6]. Key Companies and Earnings Forecast - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for several companies, indicating a positive outlook for the following years. For instance, Changan Automobile is projected to have an EPS of 1.08 in 2024, increasing to 1.58 by 2026, with a PE ratio decreasing from 11.76 in 2024 to 8.04 in 2026 [9].