According to Founder Securities' research report, sales continue to exceed expectations, and profitability is on the rise. Chongqing Sokon Industry Group Stock (601127.SH) achieved quarterly profitability for the first time, with a net income of 220 million yuan in the first quarter of 2024, under the combined influence of increased vehicle volumes and prices. The second quarter saw continuous iterations of the AITO WENJIE brand, with the popularity of new models increasing further under redesigned models. In June, the auto sector saw negative growth due to base effects, and the overall market showed a shaky performance with weak overall beta for both vehicles and parts. It is expected that the sector will hit a turning point in July, with a rebound in repair triggered by Huawei's new car period, self-driving technology, and the continuation of the business cycle. Sokon's second and third quarter orders and deliveries are expected to remain robustly positive, and it is still the leader in Huawei's smart car industry, with recommended attention to opportunities for oversold positioning. Recommended rating: "Buy".