Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>CMS Suggests Focus on Leaders Effect & Tech-driven Innovation in Auto Sector, Prefers BYD/ Tesla/ FUYAO GLASS
Recommend 66 Positive 57 Negative 58 |
||||
|
||||
|
China Merchants Securities noted in a report that Apollo Go, BIDU-SW (09888.HK)'s robotaxi subsidiary, achieved strong order numbers in Wuhan, attracting market attention. With the robotaxi sector still at an early stage of development. Apollo Go's coverage area is limited, and its travelling efficiency is significantly lower than that of human drivers. As its economic advantages have not yet been highlighted, there is still a big gap between "can use" and "ease to use". However, the commercialisation of Apollo Go in Wuhan will serve as a demonstration and data support for the subsequent nationwide promotion, which will help promote the accelerated development of robotaxi. In addition, foreign media reported that Tesla (TSLA.US) plans to postpone the release of its robotaxi business from August to October. CMS believed the delay is mainly due to the prototype design still needing revision, rather than the self-driving technology performing below expectations, so the impact on the medium- to long-term development is relatively small. According to the report, the market competition in 2H24 is predicted to remain fierce, and the main line of investment is to focus on companies benefiting from the concentrated effect of being industry leaders, and companies with business model innovation led by disruptive technologies. CMS favoured BYD COMPANY (01211.HK) as its subversive DM5.0 technology intensified the replacement of joint venture-brand ICEVs by hybrids. Implementation of DM5.0 to more models will further promote BYD's market share, while its overseas market will contribute more to sales as local plant productions begin, CMS also liked Tesla. The company's automotive cycle has bottomed out, while it possessed 2 AI implementation scenarios in intelligent EVs and humanoid robots, giving it a first-come advantage. The broker considered the valuation release of Tesla's AI-derived business, Robotaxi release and entry of FSD into China to be catalysts for 2H24. Finally, CMS recommended FUYAO GLASS (03606.HK) for its strong global business expansion ability, industry monopoly advantage and strong product pricing power, allowing the company to fully enjoy the demand growth brought by the automotive industry's electric intelligent product innovation. Within the export theme, CMS suggested focusing on GWMOTOR (02333.HK) and GEELY AUTO (00175.HK), which would enjoy sales volume flexibility due to export growth. On the smart driving theme, Tesla FSD's entry into China will have a short-term catalytic effect on smart driving NEV startups such as XPENG-W (09868.HK) and LI AUTO-W (02015.HK). AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
