China Securities Co., Ltd.: Continues to be bullish on the automotive sector, focusing on smart driving and Siasun Robot & Automation for buying opportunities.

China Securities Co., Ltd. issued a research report stating that this week, major automakers released their February production and sales data, which overall met or even exceeded expectations. Companies such as BYD Company Limited, Geely, and Xiaopeng continued to show strong growth momentum, with improvements in export sales for BYD Company Limited and Great Wall. In addition, Ideal's release of the i8 electric vehicle appearance has helped to repair market expectations, while Xiaomi's SU7 ultra has received orders far beyond expectations. In March, the overall car sector is expected to see an upward trend due to the recovery in demand and the introduction of new vehicles, as well as the strengthening trend of mid-range and high-end intelligent driving systems. The report continues to recommend a bullish outlook on the car sector. Recommended portfolio includes: BYD Company Limited (002594.SZ), Anhui Jianghuai Automobile Group Corp., Ltd. (600418.SH), BAIC BluePark New Energy Technology (600733.SH), Geely Auto (00175), Great Wall Motor (601633.SH), Jiangling Motors Corporation, SAIC Motor Corporation (600104.SH), Shanghai Baolong Automotive Corporation (603197.SH), Bethel Automotive Safety Systems (603596.SH), Huizhou Desay SV Automotive (002920.SZ), and Jianwei Hengrun (688326.SH). Key points from China Securities Co., Ltd. include: Continued bullish outlook on the car sector, focusing on intelligent driving and Siasun Robot & Automation's adjustment buying points. This week, major automakers released their February production and sales data, which overall met or exceeded expectations. Companies like BYD Company Limited, Geely, and Xiaopeng continued to show strong growth momentum, with improvements in export sales for BYD Company Limited and Great Wall. The report recommends focusing on the car sector, and also notes that the intelligent driving and Siasun Robot & Automation sectors have experienced significant adjustments this week. Despite this, the industry trend remains clear, and the report maintains a bullish view, particularly on intelligent driving with a focus on the new smart car launch from BYD Company Limited in March, as well as the performance of Siasun Robot & Automation, and opportunities for new purchases. Opportunities in the car and intelligent driving industry chains lie in the potential for revaluation. Investment opportunities in the car sector include leveraging smart technologies to enhance sales volumes and profits, while investment opportunities in components come from hardware companies steadily realizing their performance in stages 1-10, as well as suppliers with new technologies and business models seeing valuation improvements in stages 0-1 while facing potential supply bottlenecks. The report suggests focusing on: 1) Car manufacturers: BYD Company Limited, Anhui Jianghuai Automobile Group Corp., Ltd., BAIC BluePark New Energy Technology, Geely Auto, LI AUTO-W, Great Wall Motor, Jiangling Motors Corporation, etc. 2) Domain control components: Huizhou Desay SV Automotive, Bethel Automotive Safety Systems, Jwei Hengrun, Keboda Technology, Shanghai Baolong Automotive Corporation, etc. 3) BYD Company Limited's intelligent driving industry chain targets: BYD ELECTRONIC, Electric Connector Technology, and upstream tier 2 CIS segments, etc. 4) State-owned enterprise reform themes: SAIC Motor Corporation, etc. Risk factors to consider: 1) The industry's economic environment not meeting expectations. 2) Policies not having the expected impact. 3) Export sales falling short of expectations. 4) Worsening industry competition. 5) Customer expansion and new project production progress falling short of expectations.