Shenwan Hongyuan Securities·2025-12-22 07:29Investment Rating - The report maintains a positive outlook on the automotive industry, particularly focusing on companies with advantages in smart technology and the second-hand car market [1][3]. Core Insights - The recent approval of L3 autonomous driving models by the Ministry of Industry and Information Technology marks a significant step towards commercialization, with companies like Xiaopeng, Li Auto, and others expected to benefit [4][6]. - The report highlights the potential for recovery in the second-hand car market and improved profitability for dealers due to the current industry pricing cycle [1][3]. - Companies with strong performance support and relatively low valuations are recommended for attention, including Yinlun, Shuanghuan, Jifeng, and others [1][3]. Summary by Sections Industry Update - The average daily retail sales of passenger cars in China for the second week of December were 67,000 units, a year-on-year decrease of 17% but a month-on-month increase of 9% [3]. - The automotive industry transaction volume reached 491.613 billion yuan, with a week-on-week increase of 4.82% [3][10]. - The automotive industry index closed at 7654.14 points, down 0.10% for the week, which is a smaller decline compared to the Shanghai and Shenzhen 300 index [10][12]. Market Situation - The report notes that 164 automotive stocks rose while 105 fell, with Zhejiang Shibao and Haoen Qidian showing the largest gains of 44.1% and 28.4%, respectively [15]. - The report emphasizes the importance of the L3 autonomous driving models' approval for future market developments [4][29]. Investment Recommendations - Companies with a relative advantage in smart technology, such as Xiaopeng, NIO, and others, are highlighted as key investment opportunities [1][3]. - The report suggests focusing on second-hand car companies like Uxin for potential profitability recovery [1][3]. - It also recommends companies with strong earnings support and low valuations, such as Yinlun and Shuanghuan, for potential growth [1][3]. Important Events - The approval of L3 autonomous driving models is seen as a pivotal moment for the industry, with specific models from Changan and BAIC being highlighted [4][24]. - The report discusses the strategic cooperation between Dong'an Power and BAIC Manufacturing, indicating ongoing innovation in the sector [25].