reports
- Bella Lu Yifei
- Greater China Research Team
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Jonathan Koh
- Ken Lee
- Kong Ho Meng
- Roy Chen Chengzhi
- Stevanus Juanda
Regional Morning Meeting Notes: Monday, July 29, 2024
GREATER CHINA Results Contemporary Amperex Technology (300750 CH/BUY/Rmb189.35 /Target: Rmb250.00) 2Q24: Earnings in line while revenue misses. Maintain BUY. Update Weichai Power (2338 HK/BUY/HK$13.16/Target: HK$16.00) Upgrade from HOLD to BUY on strong stimulus policy. Raise target price from HK$12.50 to HK$16.00. INDONESIA Results Unilever Indonesia (UNVR IJ/HOLD/Rp2,490/Target: Rp2,700) 2Q24: Weakness and market share loss due to reoccurring boycot...
- Bella Lu Yifei
- Damon Shen
- Jieqi Liu
- Jo Yee Ng
- Jonathan Koh
- Kasemsun Koonnara
- Ken Lee
- Nurul Nazira Binti Abdullah
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
Regional Morning Notes - Tuesday, July 09, 2024
GREATER CHINA Sector Property: Channel checks and observations of Shanghai and Shenzhen home markets. Update Anta Sports (2020 HK/BUY/HK$71.35/Target: HK$109.60): 2Q24 sales performance in-line despite Fila’s lower growth; full-year targets maintained with confidence in achieving OPM guidance. Weichai Power (2338 HK/HOLD/HK$11.98/Target: HK$12.50): Sales dragged by market decline. Downgrade from BUY to HOLD. Cut target price from HK$20.00 to HK$12.50. INDONESIA Update Mitra Adiperkasa (MAPI IJ/...
- Arsit Pamaranont
- Bella Lu Yifei
- Damon Shen
- Jack Goh Tooan Orng
- Jieqi Liu
- Jo Yee Ng
- Jonathan Koh
- Ken Lee
- Limartha Adhiputra
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
Regional Morning Notes - Wednesday, March 27, 2024
GREATER CHINA Results Anta (2020 HK/BUY/HK$83.55/Target: HK$109.60): 2023: Results beat on margin; on track to fulfil three-year targets. CR Land (1109 HK/BUY/HK$24.85/Target: HK$42.39): 2023: Results in line; clearer growth path ahead. CR Mixc (1209 HK/BUY/HK$23.60/Target: HK$33.20): 2023: Results beat with higher payout ratio; pursue high-quality growth. Nexteer Automotive Group (1316 HK/SELL/HK$3.24/Target: HK$2.20): 2023: Earnings miss estimate again on margin squeeze. Maintain SELL. Cut tar...
AS7 ANTA SPORTS PRODUCTS LTD.
01109 CHINA RESOURCES LAND LIMITED
INTP PT INDOCEMENT TUNGGAL PRAKARSA TBK
4731 SCIENTEX
000338 WEICHAI POWER CO. LTD. CLASS A
002352 S.F. HOLDING CO. LTD. CLASS A
01316 NEXTEER AUTOMOTIVE GROUP LIMITED
SPRC STAR PETROLEUM REFINING
0168 TSINGTAO BREWERY CO. LTD. CLASS H
FLT FRASERS LOGISTICS & COMMERCIAL TRUST
01209 CHINA RESOURCES MIXC LIFESTYLE SERVICES (RED CHIP)
- Ken Lee
China Automobile: Weekly: PV/passenger EV sales rose 6.6%/10.5% mom in...
CPCA estimates China’s retail sales of PVs and passenger EVs at 1.73m units (+28% yoy/+6.6% mom) and 580,000 units (+61% yoy/+10.5% mom) respectively, in line with forecasts. EVs’ share of China’s PV retail sales rebounded by 1.2ppt mom to 33.5% in May 23. The sales recovery in May 23 came in as expected and this was due to the stabilisation of car prices. Maintain UNDERWEIGHT on China’s auto sector with preference for the EV segment. Top picks: BYD, CATL and Li Auto.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Ken Lee
China Automobile Weekly: Weekly: China Becomes World’s Biggest Car Exp...
China took over Japan’s position as the world’s largest car exporter in 1Q23 with vehicle export volume spiking 75% yoy to 1.49m units in 4M23, driven by EVs. Exports are emerging as the new growth driver of China’s EV industry. As for the China market, passenger EV retail sales in the first two weeks of May doubled yoy and grew 17% mom, in line with expectations. China is mulling stimulus for promoting EV sales in rural areas. Maintain UNDERWEIGHT with preference for the EV segment. Top BUYs: B...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Ken Lee
China Automobile Weekly: Weekly: Auto Retail Sales Value Up 25.1% yoy ...
CPCA expects China’s retail sales of PV and passenger EV to drop 1.3%/8.4% mom in Apr 23, given the sharp mom drop in the last week of Apr 23. China’s auto sales were still curbed by the wait-and-see attitude amid a price war, but this is abating with car prices stabilising and more new models being launched. During the Golden Week of the Labour Day holiday, auto retail sales value grew 25.1% yoy, beating expectations. Maintain UNDERWEIGHT. Top BUYs: BYD and CATL. Top SELL: Ganfeng Lithium.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Ken Lee
China Automobile Weekly: 2023 Shanghai Auto Show – The prelude to the ...
The 2023 Shanghai Auto Show seems to be a prelude to the endgame of fossil fuel cars, as the spotlight shifts to EVs with two-thirds of the 150 newly-unveiled models being EVs, and ICE cars being sidelined. Many of the advanced features of the new EV models are enabled by key parts and components from tier-1 suppliers like CATL, Desay SV and FYG. BYD offers the most proprietary technologies with its new products. Maintain UNDERWEIGHT. Top BUYs: BYD and CATL. Top SELL: Ganfeng Lithium.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Ken Lee
China Automobile Weekly - Weekly: PV Retail Sales Up 8% mom In 1-9 Apr...
China’s PV retail sales rebounded by 14% mom in Mar 23 and 8% in 1-9 Apr 23, in line with estimates, driven by price cuts and local stimulus. Wholesale shipments grew at a faster pace of 23% mom in Mar 23, leading to a pile-up of inventories in the channel. As such, wholesale shipment plummeted by 23% mom in 1-9 Apr 23 due to destocking. Compared with ICE cars, EV sales are growing faster with more resilient supply-demand balance. Maintain UNDERWEIGHT. Top BUYs: BYD and CATL. Top SELL: Ganfeng L...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
Weichai Power (2338 HK): 4Q22: Earnings beat estimates; further recove...
Weichai’s 4Q22 net profit came in above estimates at Rmb1,593m (+18% yoy/+72% qoq) due to recovery in both revenue and margins. Looking ahead, Weichai’s earnings will be driven by the recovery of China’s HDT market and decline in raw materials. We raise 2023-24 net profit forecasts by 32%/23% to Rmb7,194m/Rmb7,708 and introduce 2025 net profit forecast of Rmb8,571m. Upgrade to HOLD and raise target price from HK$8.50 to HK$12.00.
- Carol Dou Xiao Qin
- Damon Shen
- Jessie Guo Yuting
- Jieqi Liu
- Jo Yee Ng
- Johnny Yum Chung Man
- Kate Luang
- Kelvin Chau Siu Pong
- Ken Lee
- Roy Chen Chengzhi
- Sunny Chen
- Terence Chiu
- Tham Mun Hon
- Zhifeng Shen
- Ziv Ang Sze Champ
Greater China Daily: Monday, April 3, 2023
KEY HIGHLIGHTS Economics PMI Points to further recovery, but employment still soft. Results China Longyuan Power (916 HK/BUY/HK$8.97/Target: HK$11.50) 2022: Below expectations; recognition of RMB2,045m in impairment provision. China Merchants Port (144 HK/BUY/HK$12.04/Target: HK$13.48) 2022: Core earnings a slight beat; expecting earnings decline in 2023. Maintain BUY. China Overseas Land & Investment (688 HK/BUY/HK$18.96/Target: HK$27.14) 2022: Results below expectations; targeting 20% sale...
00688 CHINA OVERSEAS LAND & INVESTMENT LIMITED
00144 CHINA MERCHANTS PORT HOLDINGS CO. LTD.
LGX1 CHINA RESOURCES GAS GROUP LIMITED
01177 SINO BIOPHARMACEUTICAL LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601919 COSCO SHIPPING HOLDINGS CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
853 MICROPORT SCIENTIFIC CORP
COSCO SHIPPING HOLDINGS CO. LTD. CLASS H
2202 XINJIANG GOLDWIND SCIENCE&TECHNOLOGY
916 CHINA LONGYUAN POWER GROUP-H
6862 HAIDILAO INTERNATIONAL HOLDING LTD
189 DONGYUE GROUP LTD
06690 HAIER SMART HOME CO. LTD. CLASS H
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: EV companies’ sales up 111% yoy and 38% mom i...
Eight Chinese EV OEMs jointly registered 111% yoy and 38% mom sales growth in Feb 23. BYD remained the largest EV maker in China with wholesale shipments of >190,000 units. We expect BYD’s monthly sales to grow to above the record high of 235,000 units from 2Q23 with the debuts of the 2023 facelifted Dynastic Series. Li Auto’s deliveries grew 10% mom to 16,620 units, and will likely grow to 20,000-23,000 units in Mar 23 with the debut of L7. Maintain UNDERWEIGHT. Top picks: BYD, CATL and Zhongsh...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: BYD’s new PHEV models are emerging as game ch...
BYD is rolling out new PHEV models with better fuel economy and specifications at lower prices, such as the Qin Plus DM-i 2023, Song Plus DM-i 2023, Frigate 07, Tang DM-p; we believe these will disrupt China’s ICE-car market by taking a chunk of market share from JV brands, especially the Japanese brands. We propose a pair trade of long BYD and short GAC and Zhongsheng. Maintain UNDERWEIGHT. Top picks: BYD, CATL, NXS and Minth. Downgrade GAC and Zhongsheng to SELL.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: China’s passenger EV sales spiked by 106% yoy...
According to CPCA, China’s retail sales volume of passenger EVs spiked 106% yoy but dropped 18% mom during 1-12 Feb 23, lower than we expected. However, insurance registrations of passenger EVs recovered by 23% wow in the week ending 12 Feb 23, the second week of growth in a row. We estimate Feb 22 China’s passenger EV sales at 400,000 units (+47% yoy/+20% mom). Maintain UNDERWEIGHT. Top picks: CATL, Ningbo Xusheng and Ningbo Xusheng.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: Policies coming to the rescue. Maintain UNDER...
China’s PV retail sales slumped 38% yoy and 41% mom to 1.3 units in Jan 23, in line with estimate, due to the Chinese New Year holiday and front-loading effect from the expiry of stimulus. We expect China’s PV sales to recover from Feb 23, driven by: a) seasonality; b) local stimulus kicking in; and c) more Chinese EV OEMs cutting prices in response to Tesla’s price cuts. We keep our estimate on 2023 China’s EV sales growth at 30%. Maintain UNDERWEIGHT. Top picks: CATL and Ningbo Xusheng.
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: January auto down 40% mom, supportive policie...
CPCA expects China sales of passenger EVs and PVs to drop by c. 40% mom in Jan 23, due to: a) a wave of COVID-19 infections, b) seasonality, and c) the front-loading effect from the expiry of stimulus at end-22. The government is reportedly mulling supportive policies for auto industry. Maintain UNDERWEIGHT. Top picks: CATL and Ningbo Xusheng. We remove Fuyao Glass and Desay SV from our top-pick list. Downgrade Li Auto and Meidong to SELL on valuations.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: Tesla’s price cut triggers a price war in Chi...
Tesla’s 6-13% price cut on 6 Jan 23 has triggered a price war in China’s EV market. Since then, two Chinese OEMs − Aito and XPeng − have cut prices by around 10%, and we expect more OEMs to follow suit due to weak demand after the expiry of EV purchase subsidies. We keep our expectation of an EV sales recovery by Mar 23 on the abating front-loading effect. Maintain UNDERWEIGHT. Top picks: CATL, Fuyao Glass and Desay SV. We add Ningbo Xusheng to our top-pick list.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002460 GANFENG LITHIUM CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: Exports emerging as a new growth driver for C...
Looking ahead, we expect exports’ share in China’s EV sales volume to soar from 16- 17% in 2021-22 to over 20% in 2023, as Chinese branded EVs are gaining popularity fast in developed countries. However, auto sales in China dropped as expected in the first week of Jan 23, due to the expiry of stimulus. We expect China’s auto sales to recover strongly from Mar 23 when the front-loading effect and epidemic fade. Maintain UNDERWEIGHT. Top picks: CATL, Fuyao Glass and Desay SV.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
XPEV XPENG INC. ADR SPONSORED CLASS A
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: 2023 outlook – Short-term pain, long-term gai...
Retail sales of passenger EVs grew 30% mom, beating estimates, driven by the lastminute purchases right before the expiry of subsidies. However, wholesale shipment only grew at low single digits mom in Dec 22, as the widespread epidemic impacted production. Looking ahead, we keep our estimate on China’s EV sales growth at 30% on the scrapping of the zero-COVID policy. Maintain UNDERWEIGHT. Top picks: CATL, Fuyao Glass and Desay SV. Downgrade Li Auto from BUY to HOLD on valuations.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: Passenger EV sales rose 16.7% mom in the seco...
In the second week of Dec 22, daily average PV retail sales rebounded 6% yoy and 40% mom, while insurance registrations of passenger EVs grew 16.7% mom and 8.5% wow. Looking into 2023, we expect ICV sales to drop 13% and EV sales to grow 30%, implying a hike in EVs’ market share from 25% in 2022 to 33% in 2023. Maintain UNDERWEIGHT. CATL, Fuyao Glass and Xusheng remain our top picks, and we add Desay into our list of top picks. Upgrade Li Auto from HOLD to BUY on valuation.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
- Jessie Guo Yuting
- Ken Lee
China Automobile Weekly: China EV sales rebounded in Nov 22, but ICE-c...
Daily average PV retail sales rose 21% yoy and 61% mom during 28-30 Nov 22, beating estimates. Chinese EV OEMs generally saw mom sales growth in Nov 22 and the first week of Dec 22. Tesla offers an additional discount of Rmb6,000, which will pressure OEMs like XPeng and Li Auto. Maintain UNDERWEIGHT. Top picks: CATL, Fuyao Glass and Xusheng. Downgrade Geely and Li Auto from BUY to HOLD; downgrade XPeng and Weichai Power from HOLD to SELL.
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
600660 FUYAO GLASS INDUSTRY GROUP CO. LTD. CLASS A
002594 BYD COMPANY LIMITED CLASS A
M3I MINTH GROUP LIMITED
000338 WEICHAI POWER CO. LTD. CLASS A
601633 GREAT WALL MOTOR CO. LTD. CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
881 ZHONGSHENG GROUP HOLDINGS
1268 CHINA MEIDONG AUTO HOLDINGS
1316 NEXTEER AUTOMOTIVE GROUP LTD
TXG 10X GENOMICS INC CLASS A
2460 GANFENG LITHIUM
1772 GANFENG LITHIUM CO. LTD. CLASS H
002340 GEM CO LTD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
LI LI AUTO INC. SPONSORED ADR CLASS A
1585 YADEA GROUP HOLDINGS LTD
XPEV XPENG INC. ADR SPONSORED CLASS A
2015 LI AUTO INC
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