1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the 21st week of 2025 (from May 19th to May 25th), the domestic passenger car retail sales reached 394,000 units, a year - on - year increase of 10.6%; new energy passenger car retail sales were 220,000 units, a year - on - year increase of 19.7%. The new energy penetration rate was 55.9%, up 4.3 percentage points from the same period last year and down 0.4 percentage points from the previous week. Since the beginning of this year, cumulative passenger car retail sales were 8.1 million units, a year - on - year increase of 4.8%; cumulative new energy passenger car retail sales were 4.008 million units, a year - on - year increase of 30.4%, with a cumulative new energy penetration rate of 49.5% [1][12]. - The demand in the new energy vehicle market is clearly differentiated. Leading brands have consolidated their leading positions through product advantages and market strategies. New brands like Xiaomi have brought new variables, and traditional automakers such as Chang'an and Chery have achieved remarkable new energy sales [2][22]. 3. Summary by Relevant Catalogs 3.1 Passenger Car Market Weekly Overview - **Overall Sales**: In the 21st week of 2025, domestic passenger car retail sales were 394,000 units (up 10.6% year - on - year), and new energy passenger car retail sales were 220,000 units (up 19.7% year - on - year). The new energy penetration rate was 55.9% [1][12]. - **By Power Type**: In passenger cars, traditional fuel, hybrid, and new energy vehicles sold 157,000, 17,000, and 220,000 units respectively, with year - on - year changes of - 0.8%, 17.7%, and 19.7%, accounting for 39.8%, 4.4%, and 55.9% of passenger cars. In new energy passenger cars, pure - electric, plug - in hybrid, and extended - range vehicles sold 133,000, 59,000, and 28,000 units respectively, with year - on - year changes of 17.1%, 15.6%, and 46.4%, accounting for 60.5%, 27.0%, and 12.5% [17]. - **By Production Attribute**: In passenger cars, domestic and joint - venture brands sold 257,000 and 137,000 units respectively, with year - on - year changes of 20.6% and - 4.4%, accounting for 65.3% and 34.8%. In new energy passenger cars, domestic and joint - venture brands sold 197,000 and 23,000 units respectively, with year - on - year changes of 24.0% and - 8.1%, accounting for 89.6% and 10.4% [17]. 3.2 Key New Energy Automakers' Sales Analysis 3.2.1 BYD - **Weekly Sales**: 59,000 units, with BYD brand selling 53,000 units, Denza and Fangchengbao about 3,000 units each, and Yangwang 37 units [23]. - **Business Strategy**: Stopped producing fuel vehicles in March 2022. Since March this year, it released the super e - platform and launched new models. On May 23rd, it announced price cuts of up to 53,000 yuan for 22 models. The 2025 sales target is 5.5 million units. The sales of pure - electric and plug - in hybrid (including extended - range) models are evenly split [23]. 3.2.2 Geely Auto - **Weekly Sales**: 39,000 units, with 25,000 new energy vehicles (4,000 units from Zeekr). The electrification rate is about 64% [26]. - **Business Strategy**: In 2024, it released the "Taizhou Declaration". In 2025, it announced the acquisition of Zeekr. The 2025 sales target is 2.71 million units, with 2 million for Geely, 320,000 for Zeekr, and 390,000 for Lynk & Co. The new energy vehicle sales target is 1.5 million units [26]. 3.2.3 SAIC - GM - Wuling - **Weekly Sales**: 14,000 units, with 12,000 new energy vehicles. The electrification rate is about 87% [34]. - **Business Strategy**: This year, Wuling Hongguang launched an extended - range model, and Baojun launched the "Baojun Xiangjing" with plug - in hybrid and pure - electric options, but pure - electric models dominate sales [34]. 3.2.4 Chang'an Auto - **Weekly Sales**: 20,000 units, with 12,000 new energy vehicles. The electrification rate is about 58%. Its new energy brands Shenlan and Qiyuan each sold about 4,000 units, and Avatr sold over 2,000 units [39]. 3.2.5 Chery Auto - **Weekly Sales**: 20,000 units, with 7,000 new energy vehicles. The electrification rate is about 37%. Its new energy brands iCAR, Chery New Energy, and Zhijie each sold over 1,000 units [47]. 3.2.6 Tesla - **Weekly Sales**: 11,000 units in China, with Model 3 and Model Y selling over 3,000 and over 7,000 units respectively. Sales have strong seasonal fluctuations, with a significant week - on - week increase but little year - on - year growth [53]. - **Business Strategy**: This year, Tesla launched multiple promotions, including a "record - breaking discount package" for Model 3 after the Spring Festival and new offers in April [53]. 3.2.7 New - Force Automakers - **Sales**: Li Auto sold about 10,000 units, Wenjie 9,000 units, Leapmotor, Xiaomi, and NIO 7,000 units each, XPeng 6,000 units, and Aion 5,000 units. Most of Li Auto's sales are from the L series. Wenjie's sales have increased significantly, with the M8 launched and delivered recently [57].

Group 1: Super e Platform Highlights - BYD launched the groundbreaking Super e platform featuring fast-charging batteries, 30,000 RPM motors, and next-gen automotive-grade silicon carbide power chips, achieving multiple global records [2] - The charging power reaches 1 MW (1000 kW), enabling a peak charging speed of 1 second per 2 kilometers, with the fastest charging speed globally at 5 minutes for 400 kilometers [2] - Performance metrics include a single module single motor power of 580 kW and a top speed exceeding 300 km/h, defining the world's strongest professional pure electric platform [2] Group 2: Tengshi Brand Market Performance - Tengshi sold 15,388 vehicles in April, marking a year-on-year increase of 38.4% [2] - The Tengshi D9 was particularly successful, with sales of 9,045 units, maintaining the top position in MPV sales for four consecutive months in 2025 [2] - Tengshi's other models, including the Tengshi N9 and Z9GT, also contributed to the brand's strong performance [3] Group 3: International Expansion and Production - Tengshi officially entered the European market with a brand launch event in Milan, Italy, on April 7, 2025, aiming to expand into dozens of European countries within two years [3] - BYD's first electric vehicle production base in Cambodia was inaugurated on April 28, 2025, with an annual production capacity of 10,000 vehicles, set to commence operations in Q4 2025 [3] Group 4: Energy Storage Business Progress - BYD has initiated the shipment of 2,364 modular energy storage cabinets to Saudi Arabia, following a partnership for a 12.5 GWh grid-side energy storage project, setting a new industry record for shipment speed [3]

Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company achieved a wholesale sales volume of 380,000 new energy vehicles in April, representing a year-on-year increase of 21.3% and a month-on-month increase of 0.7% [1][2]. - The cumulative sales from January to April reached 1.359 million units, up 45.1% year-on-year [2]. - The company’s export sales in April reached 79,000 units, setting a new record, with steady growth in overseas demand, particularly in Turkey, Brazil, and Europe [2][3]. - The launch of the intelligent driving version of the Dynasty Ocean series is expected to accelerate the democratization of intelligent driving technology [3]. - 2025 is projected to be a significant year for high-end products, with the launch of the Tengshi N9 and flagship models featuring advanced intelligent driving systems [3]. Financial Projections - Revenue forecasts for 2025-2027 are projected at 1,014.12 billion, 1,237.23 billion, and 1,477.25 billion yuan respectively, with net profit estimates of 58.15 billion, 67.12 billion, and 74.19 billion yuan [4][5]. - Earnings per share (EPS) are expected to be 19.13, 22.09, and 24.41 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (PE) ratios of 18, 16, and 14 [4][5].

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [19]. Core Insights - The report highlights the launch of new electric vehicle models, including the Xiaopeng X9 and the Denza N9, which are positioned to enhance market competition in the electric vehicle sector [6]. - The report emphasizes the importance of power batteries in electric vehicles, suggesting a focus on companies involved in battery production and related materials [6]. - The report provides detailed specifications of new vehicle models, including pricing, power output, and range, showcasing advancements in technology and design [6]. Industry Overview - The industry consists of 299 listed companies with a total market capitalization of approximately 46,881.73 billion and a circulating market value of about 41,202.87 billion [2]. - The absolute performance of the industry over the past 12 months shows a growth of 3.9%, while the relative performance indicates a decline of 3.0% compared to the benchmark index [3]. Recent Developments - The Ministry of Industry and Information Technology announced the public disclosure of new energy vehicle models, with 218 enterprises submitting 578 models for approval, including 498 pure electric models [6]. - Xiaopeng X9 is priced between 359,800 to 419,800 yuan, featuring a maximum range of 740 kilometers with a 105 kWh battery [6]. - Denza N9 offers a comprehensive range of 1302 kilometers and includes advanced driving assistance features [6]. - Wuling Hongguang has introduced a range-extended version, providing options for fuel, range-extended, and pure electric powertrains [6].

Investment Rating - The report maintains a "Recommended" rating for the company [4][7]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 85-100 billion yuan in Q1 2025, representing a year-on-year increase of 86.0% to 118.9% [2][4]. - The company's vehicle sales reached 1,001,000 units in Q1 2025, a year-on-year increase of 59.8%, with export sales significantly contributing to profit growth [2][3]. - The company is accelerating its overseas expansion, with plans to establish factories in Brazil, Uzbekistan, Hungary, Turkey, and Indonesia, which is expected to enhance profitability [3][4]. - The launch of high-end models is anticipated to drive sales and profitability, with the Tengshi N9 and flagship models equipped with advanced driving systems [4]. Summary by Sections Financial Performance - The company forecasts a net profit of 92.5 billion yuan for Q1 2025, a year-on-year increase of 102.5% and a quarter-on-quarter decrease of 38.4% [2][4]. - The projected revenue for 2025-2027 is 1,014.12 billion yuan, 1,237.23 billion yuan, and 1,477.25 billion yuan respectively, with net profits of 581.2 billion yuan, 670.9 billion yuan, and 741.7 billion yuan [4][6]. Sales and Market Expansion - The company’s export volume reached 206,000 units in Q1 2025, a year-on-year increase of 110.5%, contributing to a 20.6% share of total sales [2][3]. - The introduction of smart driving models is expected to enhance market competitiveness, with orders for these models accounting for 25%-30% of total orders [3][4]. Product Development - 2025 is identified as a significant year for high-end product launches, with models like the Tengshi N9 and flagship vehicles featuring advanced technology [4]. - The company is leveraging its data advantages to promote smart driving accessibility, potentially transforming the automotive landscape in China [3][4].

Investment Rating - The report maintains a "Buy" rating for BYD, indicating a positive outlook on market share and profit realization prospects [3][5]. Core Insights - BYD's total revenue for 2024 is projected to grow by 29.0% year-on-year to CNY 777.1 billion, with net profit increasing by 34.0% to CNY 40.3 billion [1]. - The company is expected to sell 4.25 million new energy passenger vehicles in 2024, a year-on-year increase of 41.1%, with pure electric vehicle sales rising by 12.1% and plug-in hybrid sales increasing by 72.8% [2]. - BYD's export sales are anticipated to grow by 71.9% to 417,000 units in 2024, driven by new model launches and enhanced cooperation with overseas dealers [2]. Financial Performance Summary - **Revenue and Profit Forecasts**: - 2024 Revenue: CNY 777.1 billion - 2024 Net Profit: CNY 40.3 billion - 2025E Net Profit: CNY 54.4 billion - 2026E Net Profit: CNY 68.5 billion - 2027E Net Profit: CNY 82.0 billion [4][10]. - **Growth Rates**: - Revenue Growth Rate (2024): 29.0% - Net Profit Growth Rate (2024): 34.0% [4][10]. - **Earnings Per Share (EPS)**: - 2024 EPS: CNY 13.84 - 2025E EPS: CNY 17.89 [4][12]. Valuation Metrics - The target price for A-shares is set at CNY 449.38, corresponding to a 25x PE for 2025E, while the target price for H-shares is HKD 491.49 [3][5]. - The report projects a P/E ratio of 27 for A-shares in 2025E [12]. Market Position and Strategy - BYD is leveraging its strong innovation capabilities with technologies like the "Super e Platform 3.0" and DM5.0 to enhance its electric vehicle offerings and accelerate its smart transformation [2]. - The company is entering a new model cycle with multiple brands, aiming to capture high-end market segments [2].

Investment Rating - The report maintains a "Recommended" rating for BYD, with a closing price of 369.59 CNY as of March 25, 2025 [5]. Core Insights - BYD's revenue for 2024 reached 777.1 billion CNY, a year-on-year increase of 29.0%, while net profit attributable to shareholders was 40.25 billion CNY, up 34.0% year-on-year [1]. - The company is expected to see significant growth in revenue and profit from 2025 to 2027, with projected revenues of 1,014.1 billion CNY, 1,237.2 billion CNY, and 1,477.2 billion CNY, respectively [4]. - The report highlights the launch of high-end intelligent driving models and an aggressive expansion into overseas markets, with a target of 800,000 units for export in 2025 [3]. Summary by Sections Financial Performance - In Q4 2024, BYD's revenue was 274.85 billion CNY, reflecting a 52.7% year-on-year increase, and net profit was 15.02 billion CNY, up 73.1% year-on-year [1][2]. - The overall gross margin for Q4 2024 was reported at 17.0%, with automotive and battery gross margins at 19.8% [2]. Sales and Production - BYD sold 1.524 million vehicles in Q4 2024, a 61.7% increase year-on-year, with a single vehicle average selling price (ASP) of 144,100 CNY [1][2]. - The report notes a slight decrease in the proportion of high-end models sold, which accounted for 4.1% of total sales [1]. Strategic Initiatives - The introduction of the Dynasty Ocean series intelligent driving models aims to democratize high-level autonomous driving technology [3]. - The company plans to enhance its high-end product offerings in 2025, with the launch of the Tengshi N9, a six-seat large SUV [3]. Future Projections - The report forecasts a net profit of 58.12 billion CNY for 2025, with an expected EPS of 19.12 CNY [4]. - BYD's projected PE ratios for 2025, 2026, and 2027 are 19, 17, and 15, respectively, indicating a favorable valuation trend [4].

Investment Rating - The report maintains a "Recommended" rating for the automotive industry [1] Core Views - The automotive sector is expected to enter a phase of sales prosperity, event catalysis, and industry trend resonance, with continued optimism for investment opportunities in the automotive sector [8][18] - The 2024 vehicle trade-in policy has boosted passenger vehicle sales beyond expectations, and the continuation of this policy in 2025 is expected to support upward consumer spending on automobiles [8][18] Summary by Sections Recent Developments - The Tengshi N9 SUV was launched on March 21, with a starting price of 389,800 yuan, featuring advanced specifications such as a power output of nearly 1,000 horsepower and a 0-100 km/h acceleration time of 3.9 seconds [5][15] - The second-generation Haval Xiaolong MAX began pre-sales on March 21, with a starting price of 138,800 yuan, showcasing a comprehensive power system and intelligent driving features [6][16] - Elon Musk held a Tesla all-hands meeting on March 20, discussing innovations in production lines and plans for mass production of autonomous vehicles and humanoid robots [7][17] Market Performance - The automotive sector outperformed the Shanghai Composite Index during the week of March 17-21, with the automotive index declining by 0.8% compared to the Shanghai Composite's decline of 1.6% [20] - The report highlights a significant increase in the penetration rate of advanced driving assistance systems, benefiting leading automakers and related component manufacturers [9][19] Investment Opportunities - The report identifies several investment opportunities, including: 1. Domestic automakers entering a new phase of high-end development, with companies like Li Auto, JAC Motors, Geely, BYD, and Great Wall Motors expected to benefit [19] 2. The "affordability" of advanced driving technology is anticipated to significantly increase its market penetration, with recommendations for companies like XPeng Motors, Huayang Group, Desay SV, and Kobot [19] 3. The potential for mass production of robots, with recommendations for leading companies in the industry chain such as Top Group, Sanhua Intelligent Control, and Beite Technology [19] 4. Favorable conditions for high-quality auto parts manufacturers amid a complex export environment, recommending companies like Fuyao Glass, Xingyu Co., and Yinlun [19] 5. Recovery in the commercial vehicle sector, particularly for heavy trucks, with recommendations for leading companies like China National Heavy Duty Truck Group and Yutong Bus [19]