Shenwan Hongyuan Securities·2025-11-09 14:42Investment Rating - The report maintains a positive outlook on the automotive sector, particularly focusing on technology-driven companies like Tesla and Xiaopeng [3][4]. Core Insights - The report emphasizes the growing importance of AI applications in the automotive industry, highlighting breakthroughs from Xiaopeng in areas such as Robotaxi, intelligent driving, and flying cars [4][5]. - It suggests that while technology leaders like Tesla and Xiaopeng should be prioritized for investment, attention should also be given to companies with strong performance support and relatively low valuations, such as KBD, Xingyu, Jifeng, and Songyuan [4]. - The report notes a potential tightening of liquidity in the market towards the end of the year, advising caution [4]. Industry Updates - According to the China Passenger Car Association, the average daily retail sales of passenger cars in the last week of October reached 155,000 units, a year-on-year increase of 47% [4]. - The report indicates a decline in traditional and new energy raw material price indices over the past week [4]. - The total transaction value of the automotive industry for the week was 595.4 billion, with a week-on-week decrease of 2.01% [4][16]. Market Situation - The automotive industry index closed at 7850.78 points, down 1.24% for the week, underperforming compared to the Shanghai Composite Index, which rose by 0.82% [4][16]. - A total of 132 stocks in the automotive sector rose, while 138 fell, with Haima Automobile, Weichai Power, and Meichen Technology showing the largest gains [4][20]. Investment Analysis Recommendations - The report recommends focusing on domestic leading manufacturers such as NIO, Xiaomi, Xiaopeng, and Li Auto, as well as companies involved in the trend of intelligentization [4]. - It suggests monitoring state-owned enterprise reforms, particularly with SAIC and Dongfeng [4]. - The report highlights component manufacturers with strong growth potential and overseas expansion capabilities, recommending companies like Xingyu, Fuyao Glass, and New Spring [4].