This week’s market: as of the closing on May 20, the A-share auto sector rose 4.42%, the CSI 300 index rose 2.23%, and the auto sector outperformed the CSI 300 index by 2.19 percentage points. The passenger car sector rose 5.78%, the auto parts sector rose 2.98%, the commercial passenger car sector rose 12.73%, the automobile service sector rose 3.54%, and the commercial truck sector rose 8.41%.
Company level: Byd Company Limited(002594) : on May 20 Byd Company Limited(002594) officially released CTB battery body integration technology. At the same time, the first model equipped with this technology – Byd Company Limited(002594) seal officially opened pre-sale, with a pre-sale price of 2128289800 yuan. This week, Tengshi D9 series, as the first medium and high-end MPV model of Byd Company Limited(002594) Tengshi series, won wide attention in the market Germany’s Ministry of transport announced that it had received the first certificate of the global economy on May 19 03 power battery system certificate. Regulation No. 100 issued by the Economic Commission for Europe is an internationally recognized general requirement applicable to the electrical safety of electric vehicles.
Industry level: automobile going to the countryside is expected to be launched in the near future: a number of media outflow policy rumors this week, and a new round of automobile going to the countryside policy is expected to be introduced in early June. At that time, vehicles within 150000 yuan, including fuel vehicles and new energy vehicles, will receive a subsidy of Dingli Corp.Ltd(300050) 00 yuan per vehicle, and the policy details have not been implemented yet. Weilai is listed in Singapore: Weilai is officially listed on the main board of the Singapore stock exchange with the stock code “NiO”. Li Bin, founder, chairman and CEO of Weilai, said that Weilai will establish an artificial intelligence and autonomous driving R & D center in Singapore to further improve Weilai’s global R & D and business layout. Tesla Shanghai plant plans to close production until mid June. It is reported that thousands of employees of Tesla Shanghai factory have been living in the factory, working 12 hours a day and 6 days a week. Tesla‘s Shanghai plant is trying to join the second shift next week, and closed production is expected to continue until mid June.
Sector strategy: policy stimulus boosts the sentiment of the sector. This round may be inclined to new energy vehicles: the expectation of policy stimulus such as going to the countryside pushes up the performance of the sector. There are long and short factors in this round of stimulus. Although the marginal effect of previous stimulus is weakened, the will and determination of subsequent policy combination will determine the effect of this round of stimulus. Wait for the implementation of the policy to help the month on month repair in the second half of the year: the epidemic has caused a certain disturbance to the production and sales in the second quarter, and the pessimistic expectation is gradually digested and released. Through the disturbance of Q2, the industrial recovery in the second half of the year is superimposed with the expected resonance of favorable policies. We believe that the automobile sector is expected to become the preferred direction of layout.
Investment view: at present, it is in the double vacuum period of performance and sales volume, and the performance of the sector is good: in the window of stimulating expectations that have not yet been fulfilled, the whole vehicle has a certain general rise market. It is suggested to pay attention to the valuation repair of head independent brands and new energy vehicle enterprises. Parts lag behind the performance of the whole vehicle, or start the market of make-up: in the early stage, some traditional parts have significantly oversold, so it is suggested to stimulate the valuation repair under the expectation. In addition, Tesla and Byd Company Limited(002594) industrial chain still have the dual certainty of price and volume in 2022. It is recommended to focus on the three elements of “high growth, low value and good track”.
Risk tips: 1) disturbance of macroeconomic factors to the industry. 2) Risk of rising raw materials. 3) Epidemic situation and related risks.
