LEAPMOTOR(HK:09863) Shanghai Securities·2026-01-08 11:41Investment Rating - The industry investment rating is "Hold" [2] Core Views - The automotive sector has shown a weekly increase of 1.49%, with the auto parts sub-sector performing the best at +3.55% [3] - The report highlights the implementation of a large-scale vehicle replacement policy in 2026, providing subsidies for scrapping and replacing vehicles, which is expected to stimulate demand [5] - In November, China's automotive market share reached 40% of global sales, indicating a strong position in the international market [6] Summary by Sections Market Summary - The automotive sector's weekly performance was +1.49%, ranking 5th among 31 primary industries [3] - The average daily wholesale volume of domestic passenger cars was 118,900 units, down 13% year-on-year, while the average daily retail volume was 89,800 units, down 12% year-on-year [4] Policy and Regulation - The National Development and Reform Commission and the Ministry of Finance announced a policy to support vehicle scrapping and replacement, offering subsidies of up to 20,000 yuan for new energy vehicles and 15,000 yuan for fuel vehicles [5] - The policy aims to boost the automotive market and encourage consumers to upgrade their vehicles [5] Strategic Investments - China FAW Group invested approximately 3.744 billion yuan in Leap Motor, becoming a significant strategic shareholder, which is expected to enhance both companies' competitive edge in the global market [7] - The collaboration aims to leverage Leap Motor's technology and FAW's international network for better market penetration [7] Investment Recommendations - The report suggests focusing on companies involved in intelligent vehicle technology, those with potential overseas sales, and parts manufacturers benefiting from domestic substitution effects [9] - Specific companies recommended include BAIC Blue Valley for complete vehicles and several firms for auto parts [11]