Auto stocks “engine” to start three main lock industry recovery

Source: Securities

Original title: Auto stocks “engine” to start three main lock industry recovery

□ Newspaper Reporter Zhong Yi Niu

March 25, the outbreak of large Auto sector, sector index rose 4.74 percent, ranking Shen Wan an industry gains top position, dawn shares, Lifan shares over 10 stocks daily limit, leading shares SAIC, Great Wall Motor or surpassed 5%. Analysts pointed out that the current valuation of the company Car sector adjusted to the most extreme value near the lower limit since 2014, market concerns about the industry has to a large extent priced in. At the same time, many provinces and cities have introduced policies to encourage Automobile consumption, industry usher in recovery opportunity.

favorable policies followed

“About supported the flow of commerce Recently, the MinIstry of Commerce and other minIstries jointly Issued business enterprIses return to work notice “that the local commerce authorities to actively promote the introduction of subsidies for the purchase of a new Car, Car” TM “subsidies, the abolition of restrictions pickup into the city, to promote measures to facilitate the trading of second-hand Cars, etc., in order to stabilize and expand Car consumption.

In fact, many provinces and cities have policies to promote Automobile consumption in gradually introduced. For example, Changsha City Development and Reform CommIssion Issued a new policy to promote Automobile consumption, consumers to buy a vehicle dealer Will receive a 3% subsidy; New York boost from new energy Automobile consumption, encourage Car accelerate upgrading of Automobile consumption environment to create three proposed Car allowance, bonus bidding, the new parade taxi metrics and optimization of small passenger index regulatory policies and other measures to support the Automotive industry sustained and healthy development.

In addition, Zhejiang Province Issued the “Zhejiang Provincial People’s Government Office Opinions on boosting consumption to promote stable economic growth” (hereinafter “Opinion”). “Opinions” relate to specific initiatives to boost consumption of 16, in the “release of urban and rural Auto consumption potential”, put forward to encourage orderly Hangzhou Car restriction measures to relax the content and so on.

In thIs regard, Soochow Securities Auto industry analyst Huang in fine, said the outbreak affected by domestic and foreign Car sales data in February fell sharply, the current “stable steamCar consumption, “the tone has been set, floor measures can be expected, affected by the outbreak or hedge.

focus on three main opportunities

many industry insiders believe that although the February Car sales data fell sharply, but the objective view, the outbreak of more negative impact on the Automobile market Is short-term, one-time, after the outbreak consumer demand for Cars Will usher focus on the release, industry boom Is expected to begin to rIse in the second quarter

for investment opportunities in the Auto sector, Tianfeng Securities, said the current focus on three main lines: first of all, the vehicle sector Is recommended due course layout leading Car prices ; secondly, parts sector suggestion of high long-term dIstribution assets worldwide; finally, the dealer sector benefit proposes a focus on sales to pick up and clearing industry’s leading dealers

Pacific Securities said. Some of opportunity for the Auto sector has emerged from the current situation, Japan and South Korea without lay-off status epidemic has been effectively controlled, supply rIsks basically eliminated, adjust the pressure related to Japanese Car firms Will be smaller; a The core of these independent Auto parts suppliers get the chance of a lifetime, in the past due to the high-tech barriers and dIsadvantages of the scale, core domestic Auto parts supply companies did not even fit the chance that the supply chain Will increase the rIsk of major Automobile companies efforts to support domestic enterprIses, independent core parts enterprIses rIse can be expected.

Huaxi Securities optimIstic about the new energy vehicles, new energy vehicles in 2020 represents a subsidy policy Will remain relatively stable, Will not sharp slope back new energy vehicles are driven by the policy gradually shifted supply drive, there burst models Will drive the industry into the growth period from the introduction of new energy vehicles to enhance the penetration rate Is expected to accelerate, proposes a focus on the industrial chain, and Tesla Volkswagen MEB chain

source: US Securities