Huachuang Securities·2026-02-01 11:31Investment Rating - The report maintains a "Buy" recommendation for the automotive industry, focusing on new energy vehicles and related technologies [1]. Core Insights - The automotive market is currently experiencing a cautious atmosphere, with stakeholders observing the recovery of terminal demand and the impact of policies and costs on profitability. Short-term fluctuations in the non-ferrous sector are affecting pricing negotiations in the upstream and midstream segments. The report suggests monitoring factors that could lead to a rebound in vehicle sales in Q1, including retail and export performance, while remaining optimistic about the automotive parts sector, particularly in areas like intelligent driving, liquid cooling, and robotics [1][3]. Data Tracking - In late January, the industry discount rate decreased to 9.5%, showing a year-on-year increase of 0.6 percentage points and a month-on-month decrease of 0.1 percentage points. The average discount amount was 21,541 yuan, up by 1,294 yuan year-on-year but down by 718 yuan month-on-month [3]. - December saw a decline in wholesale and retail sales of passenger vehicles, with wholesale sales at 2.85 million units, down 8.7% year-on-year and 6.3% month-on-month. Retail sales of domestic passenger vehicles were 2.28 million units, down 16.8% year-on-year but up 13.7% month-on-month [3]. - The report highlights specific companies to watch: Geely, JAC Motors, and BYD are recommended for vehicle manufacturers, while Foresight Technology, Minth Group, and Top Group are suggested for automotive parts [5]. Industry News - In January, the Secretary-General of the Passenger Car Association reported that the automotive industry generated revenues of 1.11796 trillion yuan in 2025, a year-on-year increase of 7.1%, with costs rising by 8.1% [31]. - The report notes that the total number of new energy vehicles in China reached 43.97 million by the end of 2025, accounting for 12.01% of the total vehicle population [31]. - The report also mentions the establishment of a joint venture between a Vietnamese automaker and BYD to build a commercial electric vehicle battery factory in Vietnam, with a total investment of $130 million [31][32]. Market Performance - The automotive sector experienced a decline of 5.12% this week, ranking 28th out of 29 sectors. The average decline for the sector was 5.2%, with 236 stocks falling and only 41 rising [8][34].