GF SECURITIES·2026-01-29 11:52Investment Rating - The industry investment rating is "Buy" [2] Core Insights - As of Q4 2025, the public fund allocation to the automotive industry is 5.08%, an increase of 0.19 percentage points from the previous quarter. The automotive industry is over-allocated by 0.62 percentage points compared to its free float market value of 4.47% [5][27][29] - The allocation to automotive parts, motorcycles and others, and commercial vehicles is over 0.80, 0.62, and 0.01 percentage points respectively, while passenger vehicles and automotive services are under-allocated by 0.78 and 0.03 percentage points respectively [27][29] - The report indicates a trend of increasing allocation to the automotive sector since Q2 2023, driven by favorable policy environments and rising demand for passenger vehicles [5][17] Summary by Sections Section 1: Fund Allocation - The public fund allocation to the automotive industry at the end of Q4 2025 is 5.08%, which is a 0.19 percentage point increase from Q3 2025. The allocation has seen fluctuations over the years, with a peak of 6.20% in Q3 2014 [16][17] - The allocation to the automotive sector has been influenced by various factors, including tax incentives and the rapid development of new energy and intelligent vehicles [16][17] Section 2: Over-Allocation Analysis - The automotive industry is over-allocated by 0.62 percentage points, with specific over-allocations in automotive parts (0.80 percentage points) and motorcycles and others (0.62 percentage points) [27][29] - The passenger vehicle sector is under-allocated by 0.78 percentage points, indicating a potential area for investment consideration [27][29] Section 3: Individual Stock Allocation - As of Q4 2025, the top ten automotive stocks held by public funds include Zhejiang Rongtai (113 funds), Top Group (104), and Fuyao Glass (91) [43][46] - The total market value of the top ten automotive stocks held by public funds is led by Ninebot Company-WD (7.4 billion), followed by New Spring Shares (6.9 billion) and Zhejiang Rongtai (5.9 billion) [46]