$BYD COMPANY (01211.HK)$$LI AUTO-W (02015.HK)$ BYD and Li Au...

BYD and Li Auto are UOB KH's top picks in China automobile sector. Their tp are HKD590 and HKD312 respectively.

China's PEV wholesale shipment and retail sales grew 22-23% yoy and 4-6% mom in Sep 2023 to record highs of 831,000/743,000 units respectively, in line with estimates. ICE-car wholesale shipment spiked 12% mom in Sep 23, outpacing PEV, as OEM pushed inventories to dealers at big promotional discounts to attain 3Q23 sales targets. EV companies' insurance registrations fell 30% wow in the first week of October due to the Golden Week.