Huafu Securities: Independent car companies have long-term broad prospects for going overseas, and overseas sales are expected to reach over 9 million vehicles in the future.

Huafu Securities released a research report stating that by 2025, the penetration rate of new energy passenger vehicles overseas is expected to be around 12%, with room for further growth. Geopolitical conflicts are expected to lead countries to pay more attention to energy security, promoting an increase in the global penetration rate of new energy vehicles. Due to the strong product capabilities and first-mover advantage of Chinese car companies in the field of new energy vehicles, the overseas sales volume of Chinese car companies is expected to reach over 9 million units in the long term. Key points of Huafu Securities: - Overseas vehicle exports exceeding expectations in 2026 Q1 Benefiting from Geely, BYD Company Limited's high growth in overseas markets and increasing demand for new energy vehicles, the supply and demand are both strong. In 2026 Q1, China's passenger car exports reached 1.92 million units, an increase of 64% year-on-year, with new energy vehicle exports reaching 910,000 units, an increase of 128% year-on-year, showing a rapid growth trend. The company expects the full-year passenger car export volume to reach 7.5 million units, an increase of 24.2% year-on-year; and new energy vehicle exports to reach approximately 3.5 million units, an increase of 47.9% year-on-year, with new energy vehicle exports accounting for approximately 46.7%. - Independent global expansion, obvious advantages of new energy over fuel Independent brand global expansion layout has been fully implemented, with a focus on Europe, Southeast Asia, Oceania, South America, and Central and Western Asia; by 2025, the overseas market share of Chinese car companies in the passenger car market is estimated to be 6%, with a 15% market share in overseas new energy passenger cars, demonstrating a clear advantage in the new energy field. Investment recommendation: - Car companies: Recommended to pay attention to BYD Company Limited, Geely Auto, Leapmotor, Great Wall Motor, Chery Auto. Risks: - Export sales volume below expectations; - Increased market competition risks; - Macroeconomic fluctuations risks; - Geopolitical risks.