BYD(SZ:002594) Huachuang Securities·2025-11-04 04:15Investment Rating - The report maintains a "Buy" rating for the automotive industry, highlighting the benefits of sustained growth and scale effects in the sector [1]. Core Views - The automotive industry has shown resilience with a continuous two-digit growth in sales for three consecutive quarters, driven by policy support and the "old-for-new" vehicle replacement program [11]. - The report indicates that while price competition remains significant in the passenger car segment, there are signs of improvement in margins, reflecting a reversal of the previous "involution" trend [8]. - The report emphasizes the growth in the new energy vehicle (NEV) segment, with a penetration rate exceeding 52% and a year-on-year increase in sales [14]. Summary by Sections Industry Overview - The automotive sector consists of 258 listed companies with a total market capitalization of approximately 5.09 trillion yuan, accounting for 4.2% of the total A-share market [8]. - In Q3 2025, total automotive wholesale sales reached 8.68 million units, representing a year-on-year increase of 15% [11]. Passenger Vehicles - In Q3 2025, passenger vehicle sales reached 7.69 million units, up 15% year-on-year and 8% quarter-on-quarter [16]. - Revenue for passenger vehicle manufacturers (excluding SAIC) was 380.7 billion yuan, reflecting a 4% year-on-year increase [46]. - The gross margin for passenger vehicle manufacturers (excluding SAIC) was 17.4%, down 2.3 percentage points year-on-year but up 1.0 percentage point quarter-on-quarter [51]. Auto Parts - The auto parts sector experienced a revenue growth of 11% year-on-year and 7% quarter-on-quarter in Q3 2025, benefiting from the continuous growth of scale effects [4]. - The gross margin for the auto parts sector was 19.5%, showing a slight decline of 0.5 percentage points year-on-year [42]. Commercial Vehicles - Commercial vehicle sales in Q3 2025 totaled 990,000 units, marking a 20% year-on-year increase [16]. - The report notes that the profitability of both buses and trucks has increased year-on-year [5]. Investment Recommendations - The report suggests focusing on high-risk, high-reward areas for investment opportunities in Q4, particularly in passenger vehicles and heavy trucks [4]. - Recommended stocks include Geely Automobile, BYD, and Jianghuai Automobile for passenger vehicles, and China National Heavy Duty Truck Group and Weichai Power for heavy trucks [4].