Investment Rating - The industry investment rating is "Positive," indicating an expectation that the industry index will outperform the market index by more than 5% over the next six months [6]. Core Insights - The introduction of Tesla's Full Self-Driving (FSD) in China is expected to accelerate the development of intelligent driving, enhance the regulatory framework, and promote the commercialization of autonomous taxis, while intensifying competition in the high-end market [2]. - High-end intelligent driving is becoming more accessible, with companies like BYD and Geely offering advanced driving systems at lower price points, making high-end features available for under 100,000 yuan [3]. - The competitive landscape is shifting towards leading new energy vehicle manufacturers such as XPeng, Li Auto, Xiaomi, and Leap Motor, with significant delivery increases noted in early 2025 [4]. Summary by Sections Intelligent Driving Industry - The launch of Tesla's FSD in China is a pivotal moment for the intelligent driving industry, expected to push for advancements in regulations and standards [2]. - The competition in the high-end market is heating up, with major players like Huawei and XPeng introducing their own advanced driving systems [2]. High-End Intelligent Driving Accessibility - BYD has introduced its "Tian Shen Zhi Yan" intelligent driving system across all models, significantly reducing costs and making advanced features available for under 100,000 yuan [3]. - Geely has launched its "Qian Li Hao Han" intelligent driving system, which includes various levels of features and is set to enhance its market presence [3]. Competitive Landscape - In early 2025, XPeng led the new energy vehicle sector with 30,453 deliveries, followed by Li Auto and Leap Motor, indicating a strong competitive environment [4]. - Companies are adopting differentiated strategies to capture niche markets, with new models being introduced to boost sales during traditionally slow periods [4]. Future Outlook - The report anticipates that L2+ intelligent driving will proliferate in the market below 150,000 yuan, with urban navigation assistance (NOA) penetration in mid-to-high-end models expected to rise [7]. - The shift towards end-to-end large model technology may redefine industry standards, contrasting Tesla's pure vision approach with the prevalent "LiDAR + high-precision map" strategy in China [7].

Industry Information - The second phase of the Envision AESC battery super factory in Cangzhou has commenced construction, with an annual production capacity of 20GWh planned for 2026 [8] - The total number of electric vehicle charging piles planned for Zhengzhou this year is 85,000 [10] - The total production of new energy vehicles in China exceeded 13 million units in 2024, with a target to further develop smart connected new energy vehicles [11] Policy Information - The first annual inspection standard for new energy vehicles has been implemented, focusing on battery safety testing [17] - The Shenzhen government has launched an action plan to accelerate the development of artificial intelligence and smart driving technologies [16] - The Ministry of Commerce reported that over 1 million applications for vehicle scrapping and replacement subsidies have been received since 2025 [12] Company Information - GAC Group's chairman proposed to enhance the promotion of battery swap models for electric vehicles during the Two Sessions [22] - BYD has launched the "Lingyuan" car-mounted drone system, becoming the first company to mass-produce such technology [23] - Xiaomi's SU7 Ultra has received over 19,000 orders within three days of its launch, exceeding its annual sales target [24] - Geely has signed a framework agreement to establish a joint venture for smart driving technology [25] - NIO has partnered with the University of Science and Technology of China to tackle efficiency challenges in large visual language models [31]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [2] Core Insights - Geely has launched the "Qianli Haohan" advanced intelligent driving system, which covers various models under its brand, aiming to enhance the driving experience across the country [1][10] - The "Qianli Haohan" system includes five versions (H1, H3, H5, H7, H9), with the H9 version featuring a fully redundant L3 level architecture for comprehensive driving scenarios [5][10] - The pre-sale prices for the 2025 models of the AITO M8 and M9 are set at 368,000 yuan and 478,000 yuan respectively, with the M9 model achieving significant sales milestones in the luxury segment [5][12] Investment Strategy and Key Focus - The report suggests focusing on undervalued leading companies in the vehicle and parts sectors due to performance improvements, as well as core targets in the new energy and intelligent vehicle sectors [6][11] - Recommended companies include BYD, Li Auto, and Top Group, each with a 20% weight in the investment focus [14] - The automotive sector is expected to rebound as economic conditions normalize and stimulus policies take effect, with production and sales likely to continue rising [11][13] Market Review - The automotive sector experienced a weekly increase of 3.08%, outperforming the CSI 300 index, which rose by 1.39% [7][14] - In the sub-sectors, automotive services and parts saw notable weekly gains of 2.21% and 5.00% respectively [7][14]

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - Geely's AI technology conference on March 3 showcased its advanced intelligent driving system "Qianli Haohan" and highlighted the company's strategic advancements in AI [2]. - The company is accelerating its transformation towards smart technology, with plans to enhance human-machine interaction, fully implement autonomous driving, and elevate vehicle networking capabilities [9]. - Geely's sales and operational performance are projected to grow rapidly in the coming years, supported by its electric vehicle strategy and product enhancements [9]. Financial Summary - **Revenue Forecast**: - 2023: 179,204 million CNY - 2024E: 245,193 million CNY (growth of 36.8%) - 2025E: 307,205 million CNY (growth of 25.3%) - 2026E: 365,715 million CNY (growth of 19.0%) [5][10] - **Net Profit Forecast**: - 2023: 5,308 million CNY - 2024E: 16,481 million CNY (growth of 216.4%) - 2025E: 13,636 million CNY (decline of 17.4%) - 2026E: 17,052 million CNY (growth of 25.3%) [5][10] - **Earnings Per Share (EPS)**: - 2023: 0.53 CNY - 2024E: 1.64 CNY - 2025E: 1.35 CNY - 2026E: 1.69 CNY [5][10] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio for 2024E: 10.1x - Price-to-Book (P/B) ratio for 2024E: 1.7x [5][10] Target Price - The target price for Geely is set between 22.0 and 29.4 HKD, with a potential upside of 23% to 48% based on the company's historical valuation levels and recent market performance [6][9].