CICC projected in its report that the vehicle market in China will basically have its inventory resumed to normal level in 1Q22, with 2021E and 2022E total sales volume of 25.62 million and 27.22 million units, up 4.2% and 6.2% YoY.
The broker was bullish on traditional self-developed brands with resilience, nascent carmakers, and NEV makers with potentials, including $GREATWALL MOTOR(02333.HK)$, $Li Auto(LI.US)$ and $XPeng(XPEV.US)$. For vehicle glass makers, the broker was upbeat on $FUYAO GLASS(03606.HK)$; for commercial vehicles, $WEICHAI POWER(02338.HK)$, $SINOTRUK(03808.HK)$ and $CIMC Vehicles(01839.HK)$ were preferred.
CICC also mentioned that the results performance of leading Chinese auto dealers posted stable growth, whilst the cooperation between second-hand vehicle industry and NEV kept realizing. For this theme, the broker was impressed by $ZHONGSHENG HLDG(00881.HK)$ and $YONGDA AUTO(03669.HK)$.