Investment Rating - The automotive sector is rated as "Overweight" with a recommendation to increase holdings in specific stocks [1][48]. Core Insights - The automotive sector experienced a 3.08% increase from March 3 to March 7, 2025, outperforming the CSI 300 index by 1.69 percentage points [9][37]. - The passenger vehicle retail sales in February are expected to reach 1.4 million units, reflecting a year-on-year growth of 26% but a month-on-month decline of 22% [6][39]. - The release of Geely's "Qianli Haohan" intelligent driving system marks a significant advancement in high-level autonomous driving technology [3][39]. Summary by Sections Market Performance - The automotive sector's performance includes a 0.68% increase in the passenger vehicle segment, a 1.42% increase in the commercial vehicle segment, and a 2.67% increase in the truck segment, while the bus segment saw a decline of 0.89% [9][37]. - The automotive parts sector rose by 5%, and the automotive services sector increased by 2.21%, both outperforming the CSI 300 index [9][37]. Valuation Levels - As of March 3, 2025, the automotive industry's PE-TTM stands at 28.92, up by 0.81 from the previous week [10][38]. - The valuations for sub-sectors are as follows: passenger vehicles at 31.53, commercial vehicles at 37.02, and parts at 25.96 [10][38]. New Developments - Geely's "Qianli Haohan" system includes features like high-speed NOA and automatic parking, with plans for a large-scale rollout in March 2025 [3][39]. - In February, the wholesale of passenger vehicles reached 1.781 million units, a 35% year-on-year increase [6][39]. Raw Material Prices - As of March 7, 2025, the prices for key raw materials are as follows: aluminum index at 20,847.07, copper index at 78,223.6, rebar index at 3,266.92, and rubber index at 17,431.15, with respective weekly changes of 0.93%, 1.8%, -2.2%, and -1.8% [19][38].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [3][4]. Core Insights - Geely Automobile is advancing its smart driving capabilities through partnerships, launching the "Qianli Haohang" intelligent driving system, which will be integrated into new and updated models [1]. - The company is focusing on enhancing its electric vehicle lineup, with the new E8 model priced between 149,800 and 198,800 RMB, expected to drive demand [2]. - The integration of the LEVC Geely Yizhen brand into the Geely Galaxy brand aims to streamline operations and improve efficiency [2]. Financial Projections - Expected net profits for 2024-2026 are projected at 16.42 billion, 14.10 billion, and 17.45 billion RMB respectively, with EPS of 1.63, 1.40, and 1.73 RMB [3]. - Revenue forecasts for 2024-2026 are 224.78 billion, 289.69 billion, and 338.83 billion RMB, reflecting growth rates of 25.4%, 28.9%, and 17.0% [3][6]. - The report indicates a significant increase in net profit for 2024, with a projected growth rate of 209.3% [3]. Product Development - The "Qianli Haohang" system will feature various levels of intelligent driving capabilities, with the H1 model supporting highway NOA and automatic parking, while the H9 model will offer advanced L3 architecture [1]. - The new Galaxy series models will be equipped with the H1 system, with future models expected to adopt the H9 system [2]. Market Positioning - The report suggests that Geely's focus on smart technology and electric vehicles will enhance its market position and drive sales growth [1][2].