BYD(SZ:002594) Shenwan Hongyuan Securities·2025-10-28 11:15Investment Rating - The report maintains a positive outlook on the automotive industry, indicating a recommendation to "overweight" the sector, suggesting it will outperform the overall market [4][20]. Core Insights - The "14th Five-Year Plan" establishes a development framework for the automotive industry centered on domestic demand, technological innovation, green transformation, and open integration, which is expected to provide medium to long-term growth support for the sector [4][7]. - The focus on stabilizing, increasing, and upgrading the automotive industry is highlighted, with policies aimed at preventing excessive competition, enhancing profitability, and expanding the market for new energy and intelligent products [5][6]. - Technological innovation is emphasized as a core task, with a push for breakthroughs in key technologies such as chips and algorithms, and the establishment of a self-controlled technology system [6][7]. - The report identifies the green transition as a significant direction, with expectations for the development of multiple pathways in energy efficiency and performance enhancement in the automotive sector [6][7]. Summary by Sections 1. Automotive Industry Development Framework - The "14th Five-Year Plan" outlines a framework for the automotive industry that emphasizes domestic demand, technological innovation, green transformation, and open integration [4][5]. - The policy direction aims to support medium to long-term growth through a combination of stabilization, expansion, and upgrading initiatives [5][6]. 2. Technological Innovation - The report stresses the importance of technological innovation for achieving high-quality development in the automotive sector, focusing on areas such as artificial intelligence and advanced manufacturing [6]. - There is a call for strengthening independent research and development capabilities in critical technology areas [6]. 3. Green Transformation - The report highlights the green transition as a key focus, with China expected to maintain its global leadership in renewable energy and new energy vehicles [6][7]. - The automotive industry is anticipated to develop along multiple routes, including pure electric, hybrid, and hydrogen energy vehicles, while enhancing energy efficiency and performance [6][7]. 4. Open Cooperation - The ongoing promotion of open cooperation and the "Belt and Road" initiative is expected to bring new international opportunities to the automotive industry [7]. - The report anticipates that measures such as easing foreign investment access will further deepen the global layout of the automotive sector [7].