CMSC International: The industry recommends Geely Auto (00175) and Fuyao Glass Industry Group (03606) for complete vehicles and parts, respectively, with BYD Company (01211) also being viewed favorably.

The CMSC International research report states that mainland new energy vehicle companies had a strong performance in December last year, with expectations of high growth this year. During the policy vacuum period in January and February, it is recommended to buy quality stocks. Among them, BYD COMPANY (01211) delivered 509,000 new energy passenger vehicles last month, an increase of 49.8% year-on-year and 1.1% month-on-month; with a total delivery of 4.25 million vehicles for the whole year, an increase of 41.1% year-on-year. It is estimated that sales will reach 5-5.5 million vehicles this year, with a year-on-year growth of 23.5% at the mid-range, and a doubling of overseas targets. This year, focus will be on the iterative development of pure electric platforms, and the release of the second generation of new blade battery technology to improve charging speed and range. In terms of recommended vehicle orders, CMSC International first recommends GEELY AUTO (00175), with an expected growth of approximately 70% to 1.5 million new energy vehicles this year, and high resilience. Next is BYD Company Limited, which still has room for growth in valuation and potential market space both domestically and internationally. Following that are the smart leaders Tesla, Inc. (TSLA.US) / Huawei group / XPENG-W (09868) / LI AUTO-W (02015). In terms of components, the first recommendation is Fuyao Glass Industry Group (03606), which is expected to continue to increase its global market share and high growth capabilities. The transition from the busy season to the off-peak season in January and February is the period of subsidy policy vacuum, and there may be increased volatility in automotive stocks. It is recommended to buy quality stocks with high certainty of annual growth at low points.