Market Overview - US employment data shows improvement, alleviating economic growth concerns, leading to further gains in US stocks, with the Dow Jones rising for four consecutive days [1] - Semiconductor stocks outperform the market for two days, with Nvidia rising nearly 3%, regaining its position as the most valuable company for the first time in over four months [1] - Asian markets see collective gains, with the A-share market rising and the innovative drug sector active [1] Key News - The White House announces a meeting between US and Chinese leaders this week, with China’s Foreign Ministry responding that there is no information to provide [9] - The EU plans to restrict Chinese companies from participating in public procurement for medical devices, with China’s Foreign Ministry and Ministry of Commerce stating they will firmly protect the legitimate rights of Chinese enterprises [10] - Trump announces an increase in steel and aluminum tariffs to 50%, with the White House confirming a letter urging trade partners to submit proposals [10][11] Company Updates - Xiaomi's investor conference reveals that the pricing for the YU7 model will be determined shortly before its launch, with expectations for the automotive business to achieve profitability in Q3 or Q4 [14] - TSMC's CEO projects a sales growth rate of around 20% in USD terms for 2025, citing strong AI demand as a key driver [17] - NIO reports a 21.5% year-on-year revenue increase in Q1, with a projected Q2 revenue of 19.5 to 20.1 billion yuan, reflecting a year-on-year growth of 11.8% to 15% [17] Industry Insights - The OECD has downgraded global growth forecasts, particularly for the US, which is expected to be severely impacted by tariffs, with growth expectations cut from 2.8% to 1.6% [3][12] - The nuclear power sector sees significant activity, with Meta signing a 20-year nuclear power procurement agreement, indicating a growing interest in nuclear energy among major tech companies [14] - The military industry is experiencing a surge in interest, with Rheinmetall set to replace Kering in the Euro Stoxx 50 index, reflecting a shift in market focus towards defense amid ongoing geopolitical tensions [21]

Investment Rating - The report maintains an "Outperform" rating for the automotive industry as of May 11, 2025 [1] Core Views - April saw a record high in passenger car wholesale, with retail sales reaching 1.755 million units, a year-on-year increase of 14.5% [2][8] - The "2025 China Intelligent Automotive Technology Exhibition" was held on May 8, focusing on future research, strategic trends, and technological breakthroughs in the automotive industry [3][60] - The report suggests focusing on companies with technological innovation in smart driving algorithms, sensors, and intelligent cockpits, as well as traditional automakers actively entering the smart vehicle sector [3][63] Summary by Sections Passenger Vehicles - In April, passenger car retail sales were 1.755 million units, up 14.5% year-on-year but down 9.4% month-on-month; cumulative retail for the year reached 6.872 million units, a 7.9% increase [8][61] - Wholesale for April was 2.190 million units, a 10.7% year-on-year increase but down 9.2% month-on-month; cumulative wholesale for the year was 8.468 million units, up 11.1% [8][61] - Recommended stocks include BYD (002594), Geely (0175.HK), and Xpeng Motors (9868.HK) [61] New Energy Vehicles - April retail for new energy passenger vehicles was 905,000 units, a 33.9% year-on-year increase but down 8.7% month-on-month; cumulative retail for the year was 3.324 million units, up 35.7% [8][62] - April wholesale was 1.133 million units, a 40.2% year-on-year increase and a 0.3% month-on-month increase; cumulative wholesale for the year was 3.981 million units, up 42.1% [8][62] - Key stocks to watch include BYD (002594), Geely (0175.HK), and Huayu Automotive (600741) [62] Heavy Trucks - In April, heavy truck wholesale was approximately 90,000 units, down 19% month-on-month but up 9.4% year-on-year; cumulative sales for the year were about 355,000 units, flat year-on-year [10][64] - The report highlights opportunities in the heavy truck sector due to the inclusion of natural gas heavy trucks in the subsidy range, enhancing their economic advantages [10][65] - Recommended stocks include Weichai Power (2338.HK/000338) and China National Heavy Duty Truck Group (000951/3808.HK) [65] Smart Vehicles - The report emphasizes the importance of technological advancements in smart driving and suggests monitoring companies with significant innovations in this area [3][63] - Key companies mentioned include BYD (002594), Geely (0175.HK), and SAIC Motor (600104) for complete vehicles, and Desay SV (002920) and Huayang Group (002906) for components [3][63]