HSBC Research: Suppliers Favored Over Automakers; CATL and FUYAO GLASS Given Buy Ratings
EV Sales Growth: EV sales in mainland China increased by 16% year-on-year and month-on-month in September, driven by consumer purchases ahead of year-end subsidy changes, according to HSBC Global Research.
Investment Recommendations: HSBC favored resilient suppliers like CATL and FUYAO GLASS for their profitability and growth prospects, with target prices set at $594 for CATL's H-shares and $91.2 for FUYAO GLASS' H-shares.
Autonomous Driving Leaders: The report highlighted companies in autonomous driving, recommending HORIZONROBOT-W and TUOPU GROUP, with target prices of $11 and RMB82, respectively.
Preferred Automaker: Among automakers, HSBC preferred GEELY AUTO for its growing EV market share and strong product pipeline, setting a target price of $30.
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Chinese Automakers Compete for Nissan-Mercedes Plant in Mexico; BYD and Geely Said to be Finalists
Acquisition Interest: BYD COMPANY and GEELY AUTO are among the final candidates to acquire a Nissan-Mercedes joint venture plant in Mexico, which is facing shutdowns and layoffs due to US tariff policies.
Chinese Carmakers' Strategy: The plant has attracted interest from Chinese carmakers looking to establish a production base in Mexico, with other companies like CHERY AUTO and GWMOTOR also expressing interest.
Short Selling Data: BYD COMPANY has a short selling amount of $290.69M with a ratio of 19.810%, while GEELY AUTO has $40.87M in short selling with a ratio of 9.108%.
Market Analysis: Jefferies has raised the target price for BYD COMPANY to $105, indicating positive market catalysts for the company.
Lei Jun: XIAOMI YU7 Tops Sales in January; Stores Will Stay Open During Spring Festival
XIAOMI YU7 Sales Performance: In January, XIAOMI YU7 achieved sales of 37,869 units, leading the market, as reported by Lei Jun, Chairman and CEO of XIAOMI-W.
Competitors' Sales Figures: Following XIAOMI, GEELY AUTO's Boyue L, Xingyuan, and AITO M7 sold 34,176, 29,007, and 26,454 units respectively.
Short Selling Data: XIAOMI-W experienced significant short selling at $728.14M with a ratio of 25.403%, while GEELY AUTO had $22.85M in short selling with a ratio of 9.094%.
Spring Festival Operations: Lei Jun announced that stores will remain open during the Spring Festival, with limited YU7 vehicles available for immediate delivery on the same day for orders placed.
HSI Closes Up 83 Points; BYD COMPANY and XIAOMI-W Drive Gains; Gold and Silver Stocks Surge
Market Performance: The HSI rose by 83 points (0.3%) to 27,266, with the HSCEI and HSTECH also showing gains, closing at 9,268 and 5,499 respectively, and total market turnover reaching HKD217.218 billion.
Stock Highlights: SENSETIME-W and PONY-W saw increases of 2.9% and 2.6%, while HESAI-W surged by 7.9%. Conversely, YOFC dropped by 5.7% after being added to the MSCI China Index.
Tech Sector Movements: SMIC fell by 2.2% despite a significant YoY profit increase, while other tech stocks like TENCENT and BABA-W experienced slight declines, whereas KINGSOFT CLOUD and KINGDEE INT'L saw notable gains.
Auto and Gold Stocks: Auto stocks led the market with XIAOMI-W and BYD COMPANY rising significantly, aided by new EU tariff exemptions for Chinese electric vehicles. Gold stocks also performed well, with several companies experiencing gains of 2.8% to over 9%.
CICC Forecasts Capital Flow Shifts for Stocks with Significant Weight Adjustments in MSCI China Index Quarterly Review (Table)
Stocks with Expected Weighting Increases: Stocks like SENSETIME-W and HESAI-W are expected to see significant increases in weighting, with inflows of US$422 million and US$147 million respectively, despite varying short selling ratios.
Stocks with Expected Weighting Decreases: TENCENT and BABA-W are among the stocks anticipated to experience decreases in weighting, with TENCENT facing a notable outflow of US$293 million due to high short selling activity.
HSI Gains 116 Points at Midday, Driven by Xiaomi and BYD; SMIC Shows Little Movement After Earnings Report
US Retail Sales and Market Response: December retail sales in the US fell short of expectations, while the DJIA rose 0.1% amid speculation of a potential rate cut.
Hong Kong Market Performance: The Hong Kong stock market saw gains, with the HSI up 116 points (0.4%) and notable increases in the HSCEI and HSTECH indices.
Stock Movements and Short Selling: Significant short selling activity was reported, particularly for companies like SMIC and CHINA LIT, which experienced stock price declines despite some companies reporting profit increases.
Automakers' Stock Surge: Automakers led the market gains, with companies like Xiaomi and NIO seeing substantial stock price increases following positive developments in tech innovation and profit forecasts.
JPM Cuts LI AUTO-W Rating to Underweight; Recommends GEELY AUTO and SINOTRUK as Top Choices
Market Outlook: JP Morgan predicts the Chinese automobile market will experience a mixed performance in 2023, with potential negative growth similar to 2018, but also volatility driven by new model releases and seasonal trends akin to 2025.
Top Picks: The broker's top stock picks include GEELY AUTO and SINOTRUK, while they see potential in BYD COMPANY, LEAPMOTOR, XPENG-W, and NIO for future positioning.
Investment Ratings: JP Morgan has assigned various investment ratings and target prices for several automobile stocks, with BYD COMPANY and SINOTRUK rated as "Overweight," while LI AUTO-W has been downgraded to "Underweight."
Short Selling Data: The report includes short selling data for the stocks mentioned, indicating varying levels of market sentiment and potential risks associated with each stock.
Chinese Automakers Compete for Nissan-Mercedes Plant in Mexico; BYD and Geely Said to be Finalists
Acquisition Interest: BYD COMPANY and GEELY AUTO are among the final candidates to acquire a Nissan-Mercedes joint venture plant in Mexico, which is facing shutdowns and layoffs due to US tariff policies.
Chinese Carmakers' Strategy: The plant has attracted interest from Chinese carmakers looking to establish a production base in Mexico, with other companies like CHERY AUTO and GWMOTOR also expressing interest.
Short Selling Data: BYD COMPANY has a short selling amount of $290.69M with a ratio of 19.810%, while GEELY AUTO has $40.87M in short selling with a ratio of 9.108%.
Market Analysis: Jefferies has raised the target price for BYD COMPANY to $105, indicating positive market catalysts for the company.
Lei Jun: XIAOMI YU7 Tops Sales in January; Stores Will Stay Open During Spring Festival
XIAOMI YU7 Sales Performance: In January, XIAOMI YU7 achieved sales of 37,869 units, leading the market, as reported by Lei Jun, Chairman and CEO of XIAOMI-W.
Competitors' Sales Figures: Following XIAOMI, GEELY AUTO's Boyue L, Xingyuan, and AITO M7 sold 34,176, 29,007, and 26,454 units respectively.
Short Selling Data: XIAOMI-W experienced significant short selling at $728.14M with a ratio of 25.403%, while GEELY AUTO had $22.85M in short selling with a ratio of 9.094%.
Spring Festival Operations: Lei Jun announced that stores will remain open during the Spring Festival, with limited YU7 vehicles available for immediate delivery on the same day for orders placed.
HSI Closes Up 83 Points; BYD COMPANY and XIAOMI-W Drive Gains; Gold and Silver Stocks Surge
Market Performance: The HSI rose by 83 points (0.3%) to 27,266, with the HSCEI and HSTECH also showing gains, closing at 9,268 and 5,499 respectively, and total market turnover reaching HKD217.218 billion.
Stock Highlights: SENSETIME-W and PONY-W saw increases of 2.9% and 2.6%, while HESAI-W surged by 7.9%. Conversely, YOFC dropped by 5.7% after being added to the MSCI China Index.
Tech Sector Movements: SMIC fell by 2.2% despite a significant YoY profit increase, while other tech stocks like TENCENT and BABA-W experienced slight declines, whereas KINGSOFT CLOUD and KINGDEE INT'L saw notable gains.
Auto and Gold Stocks: Auto stocks led the market with XIAOMI-W and BYD COMPANY rising significantly, aided by new EU tariff exemptions for Chinese electric vehicles. Gold stocks also performed well, with several companies experiencing gains of 2.8% to over 9%.
CICC Forecasts Capital Flow Shifts for Stocks with Significant Weight Adjustments in MSCI China Index Quarterly Review (Table)
Stocks with Expected Weighting Increases: Stocks like SENSETIME-W and HESAI-W are expected to see significant increases in weighting, with inflows of US$422 million and US$147 million respectively, despite varying short selling ratios.
Stocks with Expected Weighting Decreases: TENCENT and BABA-W are among the stocks anticipated to experience decreases in weighting, with TENCENT facing a notable outflow of US$293 million due to high short selling activity.
HSI Gains 116 Points at Midday, Driven by Xiaomi and BYD; SMIC Shows Little Movement After Earnings Report
US Retail Sales and Market Response: December retail sales in the US fell short of expectations, while the DJIA rose 0.1% amid speculation of a potential rate cut.
Hong Kong Market Performance: The Hong Kong stock market saw gains, with the HSI up 116 points (0.4%) and notable increases in the HSCEI and HSTECH indices.
Stock Movements and Short Selling: Significant short selling activity was reported, particularly for companies like SMIC and CHINA LIT, which experienced stock price declines despite some companies reporting profit increases.
Automakers' Stock Surge: Automakers led the market gains, with companies like Xiaomi and NIO seeing substantial stock price increases following positive developments in tech innovation and profit forecasts.
JPM Cuts LI AUTO-W Rating to Underweight; Recommends GEELY AUTO and SINOTRUK as Top Choices
Market Outlook: JP Morgan predicts the Chinese automobile market will experience a mixed performance in 2023, with potential negative growth similar to 2018, but also volatility driven by new model releases and seasonal trends akin to 2025.
Top Picks: The broker's top stock picks include GEELY AUTO and SINOTRUK, while they see potential in BYD COMPANY, LEAPMOTOR, XPENG-W, and NIO for future positioning.
Investment Ratings: JP Morgan has assigned various investment ratings and target prices for several automobile stocks, with BYD COMPANY and SINOTRUK rated as "Overweight," while LI AUTO-W has been downgraded to "Underweight."
Short Selling Data: The report includes short selling data for the stocks mentioned, indicating varying levels of market sentiment and potential risks associated with each stock.
