China Securities Co., Ltd.: Passenger car exports continue to exceed expectations, actively layout in the direction of high prosperity and growth.

China Securities Co., Ltd. released a research report stating that the production and sales data of major automobile manufacturers in March will be released intensively this week, with exports and sales of high-end vehicles exceeding expectations. The company continues to indicate that new energy passenger car exports will become a structural strength in overseas markets due to geopolitical conflicts and high oil prices. With the market gradually becoming desensitized to high oil prices and war factors, investors should actively grasp the direction of the high prosperity callback. The prosperity brought by AI-powered internal combustion engines continues to exceed expectations, FSD (full self-driving) has been approved in the Netherlands, and the high prosperity level of Siasun Robot&Automation is bringing about continuous evolution in the industry. Currently, the stock prices of high-quality leading companies have gradually stabilized, and under the catalyst of the Q2 sector, it is recommended to actively configure the layout at present. The main points of China Securities Co., Ltd. are as follows: Passenger car sector: The sales of major automobile manufacturers in March exceeded expectations, with strong contributions from exports and high-end vehicles, and the April auto show is imminent. Among them: Geely's export sales in March reached 82,000 vehicles, a year-on-year increase of +120%; BYD's exports reached 120,000, a year-on-year increase of +65%; and Chery's exports reached 149,000, a year-on-year increase of +72%. It is expected that there will be acceleration around the Beijing Auto Show in late April, and the year-on-year improvement of PPI in March is expected to improve domestic demand. Commercial vehicles: The performance elasticity contributed by exports may be underestimated, and AIDC and other new businesses contribute to valuation elasticity. Focus on the main themes of AI shortage (Weichai) and "door-opening" stocks for performance (FAW, Yutong, King Long). In terms of heavy-duty trucks, Weichai Power is recommended, considering that the delivery of oversized cylinder diesel engines in 2026 exceeded expectations, coupled with the accelerated landing of products in the main power source field such as combustion engines and SOFCs. The company's performance realization and valuation center position improvement are promising for the whole year. For buses, continued optimism is placed on Yutong Bus Co., Ltd., and Xiamen King Long Motor Group. The strong export prosperity since the beginning of the year is expected to support Q1 performance, and the clear long-term trend of rising export volume favors stable growth in performance + sustained high dividends (Yutong) and realization of reversal logic in adversity (King Long). Considering sufficient safety margins in stock prices, it is recommended to pay attention to the current configuration window. Physical AI: It is recommended to actively configure the layout of the intelligent driving and Siasun Robot&Automation sectors. The market is beginning to stabilize amid desensitization to war and high oil prices. Events such as the Siasun Robot&Automation sports meeting are about to take place, and the high prosperity of the Siasun Robot&Automation primary market, as well as the valuation rebound brought by the liquidity of Hong Kong stocks, are advantageous for Siasun Robot&Automation and the intelligent driving sector. The industrial trend remains clear, and supply chain companies have recently reported receiving mass production PPAs from Siasun Robot&Automation, indicating a potentially important configuration window period for the year. Recommended Portfolio: GEELY AUTO, Anhui Jianghuai Automobile Group Corp., Ltd., Jiangling Motors Corporation, Weichai Power, Yutong Bus Co., Ltd., Xiamen King Long Motor Group, CAOCAO INC, Hengbo Holdings, Wuxi Longsheng Technology, Zhejiang Sling Intelligent Drive Group, Ningbo Tuopu Group.