BYD(SZ:002594) Shenwan Hongyuan Securities·2025-09-29 10:29Investment Rating - The report maintains a positive outlook on the automotive industry, particularly highlighting the long-term global competitiveness of Chinese car manufacturers, with a specific focus on BYD as a hedge against local market fluctuations [2][3]. Core Insights - Recent interactions with overseas investors reveal a divergence in perception compared to domestic investors, with overseas investors prioritizing the long-term global competitiveness of Chinese automotive companies over short-term domestic market volatility [2][3]. - There is a notable interest from overseas investors in new technological trends within the Chinese automotive industry, especially in the fields of intelligent driving and robotics, which could enhance the valuation potential of companies with core technologies and global capabilities [4]. - The report suggests that the successful globalization strategies of strong automotive manufacturers and component suppliers will likely lead to significant growth potential [4]. Summary by Sections Overseas Investors - Overseas investors are increasingly viewing investments in Chinese automotive companies, particularly BYD, as a hedge against their local automotive industries, focusing on long-term competitiveness and globalization strategies [3]. - The report estimates that unless there is a significant change in BYD's global strategy, its market value is likely to remain above 750 billion RMB [3]. Technological Trends - There is a strong interest from overseas investors in the new technology wave in the Chinese automotive sector, particularly in intelligent driving and robotics, with positive feedback on the technological competitiveness of brands like Xiaopeng and Li Auto [4]. - This trend is expected to create new valuation opportunities for companies with core technologies and global capabilities, such as Horizon Robotics [4]. Investment Recommendations - The report recommends focusing on domestic strong alpha manufacturers like BYD, Geely, and Xiaopeng, as well as companies involved in intelligent technology trends such as Jianghuai Automobile and Seres [2]. - It also highlights the importance of state-owned enterprise reforms and suggests monitoring companies like SAIC Motor, Dongfeng Motor, and Changan Automobile for potential investment opportunities [2].