Jinwu Financial News | CITIC Securities said that strong demand during the peak season overmatched the automotive sector. Driven by policies and peak season demand, the bank expects passenger car sales in the mainland to increase by more than 5% year-on-year in September. The bank notes that orders and deliveries from major electric vehicle manufacturers such as Zero Run (09863), Ideal Auto (02015), BYD (01211), and Xiaopeng (09868; driven by MONA) are good. Due to strong sales and low discounts, the bank expects leading OEM companies to have good profit performance in the third quarter of 2024.
Furthermore, the bank believes that advanced intelligent driving assistance (NOA), led by Tesla (TSLAUS) and Chinese tech giants, is beginning to mature. Overall, the bank believes that the fundamentals of the automobile industry are good. The wealth effect was good in late September, and it is recommended that the car sector be overequipped.
