CITIC Construction Investment: The automotive sector is not lacking in structural opportunities. Needs to pay attention to the upward adjustment of semi-annual report expectations and valuation repair opportunities.

According to the research report of CITIC Securities, the automotive industry is beginning to enter the period of intensive disclosure of semi-annual performance reports. High-quality automotive companies that were previously undervalued are now experiencing valuation upgrades. Passenger vehicle sales and profit improvement expectations have strengthened, leading to strong stock price performance. In addition, the robotics sector, which has received high market attention, has reached new highs recently due to intensive catalysts. CITIC Securities believes that in the current environment of abundant market liquidity during the semi-annual reporting season, the automotive sector has structural opportunities. It is important to focus on the expectation of upward revision of semi-annual reports and the recovery of valuations. Undervalued high-quality stocks with strong industry trends and technological innovation growth potential possess alpha.