According to a research report released by CICC, the auto industry resumed production as scheduled in May and introduced policies to promote auto consumption in many places, which is expected to accelerate the recovery of auto production and sales, while boosting market sentiment. Plate valuations are low and are optimistic about the bottom rebound trend. It is recommended to pay attention to head autonomous vehicles and new power car companies, including$Li Auto Inc.-W (02015.HK) $、$XPeng Inc.-W (09868.HK) $、$NIO Inc.-SW (09866.HK) $、$Great Wall Motor (02333.HK) $、$Geely Automobile (00175.HK) $. It is also suggested that attention should be paid to the core benefit targets for the resumption of work and production.$Fuyao Glass Industry Group (03606.HK) $Heavy truck is advised to pay attention to$Weichai Power (02338.HK) $、China heavy truck (03808.HK) $.

According to the report, car companies that have reduced production by a large margin since the end of April have made good progress in resuming work and production, and are expected to gradually return to full capacity by the end of May. Wholesale sales in May are expected to increase by about 40% compared with the previous month, but it is still lower than the wholesale sales in March by about 25%. The second quarter is the annual production, marketing and operating low. Policies to promote automobile consumption have been introduced in many places, and stable automobile demand is expected to increase. Recently, the automotive sector market has rebounded slightly, but according to the forecast data, the current valuation level of each segment of the automobile is still below the historical average. At the same time, the overall profit forecast has been lowered, which fully reflects the risk of declining production and sales and rising prices of raw materials. With the resumption of work and production, the recovery of production and marketing and even the landing of stimulus policies, valuations are still flexible upward.