The Zhitong Finance App learned that Guotai Junan released a research report stating that it believes that Lijin Technology (00558) has a solid long-term growth logic and that its short-term performance is expected to continue to improve. It has given a “increase in holdings” rating, with a target price of HK$12.43. Additionally, earnings per share for the 2024-26 fiscal year are expected to be HK$0.62/0.803/1.007. Volkswagen and Xiaopeng Motor have reached a cooperation agreement to launch a new electric model for the Chinese market in 2026. Lijin Technology, the supplier of Xiaopeng Motor's oversized die casting machines, may continue to benefit

The bank believes that the cooperation between Volkswagen and Xiaopeng will effectively stimulate the increase in the penetration rate of integrated die-casting solutions in the Chinese market, and that Lijin Technology will continue to benefit. Currently, with the exception of Tesla, manufacturers that actively use integrated die-casting solutions are generally smaller, and the delivery volume of related mass-produced models is generally low, which seems to indicate that the application of integrated die-casting solutions has run into bottlenecks. However, the bank has always believed that the application of integrated die-casting solutions is the general trend. Currently, traditional car companies are gradually changing their wait-and-see attitude and actively entering the integrated die-casting program. In addition to Volkswagen, Toyota announced in June that it would launch an electric vehicle using an integrated die-casting scheme in 2025. The bank believes that cooperation between Xiaopeng Motor and Volkswagen will drive the development of China's automobile industry chain, and that Lijin Technology, a supplier of oversized die-casting machines at the Xiaopeng factory, will benefit first.