BOCOM International·2025-10-14 02:28Investment Rating - The automotive industry is rated as "Leading" with expectations for strong performance in the upcoming quarter [1]. Core Insights - In September, the penetration rate of new energy vehicles (NEVs) reached 57.8%, indicating a positive outlook for sales in the fourth quarter [1][3]. - The retail sales of passenger vehicles in September reached 2.241 million units, marking a year-on-year increase of 9.2% for the first nine months of 2025 [3]. - The report highlights that domestic brands outperformed the industry, capturing a retail market share of 66.9% in September [3]. Summary by Sections Industry Performance - The retail sales of new energy passenger vehicles in September were 1.296 million units, with a penetration rate of 57.8%, up 5.0 percentage points year-on-year [3]. - The export of passenger vehicles totaled 528,000 units in September, with a significant increase in NEV exports [3]. Company Valuation Overview - Companies such as CATL, BYD, and Xpeng Motors are rated as "Buy" with target prices indicating potential upside [2][11]. - The average price-to-earnings ratio for the covered companies is projected to be 30.9 for FY25E [2]. Investment Recommendations - The report suggests focusing on companies like Xpeng Motors and Geely for their upcoming product launches and internal resource integration [3]. - It is advised to remain cautious as the market may enter a consumption lull after the fourth quarter sales surge [3].