According to the Bank of China International's research report on September 18th, the overall stock prices of Hong Kong's auto sector have been lagging behind various fundamental indicators since the beginning of the year, mainly due to the market's pessimistic sentiment towards the macro environment and the automotive industry. The bank believes that entering the fourth quarter of this year, which is traditionally a peak season for autos, the overall industry valuation is expected to rebound significantly under the impetus of contract manufacturers with strong product cycles and historically low valuations. The bank is bullish on Xiaomi, geely auto, and nio inc. It reiterates a 'buy' rating for Xiaomi, indicating that the launch of new products in late October will be the next catalyst, expecting monthly deliveries of SU7 to exceed 0.02 million units in the fourth quarter, as well as promotional activities for the next electric vehicle product to be launched in early 2025. The bank also recommends a 'buy' rating for geely auto, expecting profit forecast upgrades in the market to help drive its valuation recovery, with short-term catalysts including market response to flagship models in the second half of the year and ongoing operational integration at the group level. As for nio inc, driven by a strong new product cycle, meaningful reduction in losses, and improved cash flow, it maintains a 'buy' rating with a target price of $9. Additionally, the bank maintains a 'buy' rating and a target price of HK$265 for BYD Company Limited.