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Stock Star

Weekly Report of the New Energy Vehicle Industry

According to SMM, after a lithium salt plant in Jiangxi announced its July maintenance news, some lithium salt plants have strengthened their price-holding sentiment. With futures prices approaching the bottom, they are more sensitive to bullish news, causing a significant rise in prices compared to Monday.

Overall, market sentiment in the upstream has improved this week, but some downstream buyers still conducted spot transactions at lower prices. The rate of price decline has improved compared to the previous period. It is expected that the price of lithium carbonate will continue to maintain a volatile and slightly weaker trend in the absence of significant improvement in market supply and demand.

01

Institutional Views

Huaxi Securities believes that the overall demand for the automotive industry in 2024 remains secure, with both domestic demand and exports expected to maintain growth. Consumer upgrades on the demand side and intelligent electrification on the supply side will bring leapfrog development opportunities for independent brand vehicle and parts companies. The relevant beneficiary stocks are Ideal Auto-W, Great Wall Motor, Changan Automobile, Geely Automobile, BYD, XPeng Motors-W, Seres, NIO-SW, GAC Group, and SAIC Motor.

In terms of parts: The cost advantage of domestic parts companies is still obvious, and the opportunities for domestic substitution and parts exports are still evident. At the same time, benefiting from consumption upgrades, electrification, intelligence, comfort, and high-end automotive parts products will see increased domestic demand, bringing strategic opportunities for domestic parts companies.

Kaiyuan Securities believes that BYD's DM5.0 and e-platform 4.0 technologies bring first-mover advantages, with new models gradually being equipped, consolidating its leading position. Overseas business growth is also high, and increased investment in intelligentization is expected to achieve breakthroughs. At the same time, the accelerated sales of Wenjie M9, with a high average price per vehicle, and the continued strong performance of the Wenjie M7 after its facelift, are expected to lead to better-than-expected Q2 results for Seres. Additionally, the upcoming releases of Enjoy S9 and other models mean that Huawei-affiliated BAIC BluePark and JAC Motors are worth paying attention to. Furthermore, the active promotion of new energy brands such as Changan Shenlan and AVITAR, as well as the potential establishment of new companies in collaboration with Huawei, are also noteworthy.

02

Macro Events

1. The Ministry of Industry and Information Technology publicly solicited opinions on four mandatory national standards, including "Limits for Fuel Consumption of Passenger Cars."

According to the official website of the Ministry of Industry and Information Technology, on June 25, it publicly solicited opinions on four mandatory national standards, including "Limits for Fuel Consumption of Passenger Cars." Among them, the "Limits for Fuel Consumption of Passenger Cars" proposes minimum requirements for vehicle fuel consumption, aiming to curb the trend of vehicle enlargement and prevent a rebound in the current overall average fuel consumption level.

2. The National Development and Reform Commission and other departments: Steadily promote the commercialization and operation of autonomous driving, and carry out pilot applications of "Integrated Vehicle-Road-Cloud" smart cars.

According to the website of the National Development and Reform Commission, on June 24, it and other departments issued measures to create new consumption scenarios and cultivate new growth points. Among them, it proposed to expand new scenarios for automobile consumption, encouraging cities with purchase restrictions to relax vehicle purchase restrictions and issue additional vehicle purchase quotas. Through the linkage of central and local governments, financial support will be arranged for the scrapping and updating of eligible old cars. Encourage qualified localities to support car replacement and updating. Expand the pilot scope of comprehensive electrification of vehicles in public areas. Steadily promote the commercialization and operation of autonomous driving, creating new scenarios for advanced intelligent driving. Carry out pilot applications of "Integrated Vehicle-Road-Cloud" smart cars. Conduct pilot reforms in urban automobile circulation and consumption. Combine auto racing, self-drive camping, automotive culture experiences, automotive modifications, car rentals, etc., to enrich automotive aftermarket products and services, further promoting the secure and convenient trading of used cars.

3. Guangdong promotes hydrogen energy highway demonstration projects.

According to the website of the Guangdong Provincial People's Government, the Guangdong Provincial Development and Reform Commission has issued the "Implementation Plan for the Guangdong-Zhanjiang Hydrogen Energy Highway Demonstration Project," aiming to promote the large-scale commercial application of hydrogen fuel cell vehicles in Guangdong Province and create a demonstration benchmark for zero-carbon logistics. According to the "Plan," the project implementation period is from June 2024 to December 2025, lasting 18 months. The project covers Guangzhou, Foshan, Dongguan, Jiangmen, Yangjiang, Zhanjiang, Maoming, and other regions, relying on major transportation networks such as the Shenyang-Haikou Expressway and the Shantou-Zhanjiang Expressway, to build a hydrogen energy cold chain logistics network, promote local hydrogen consumption, and explore sustainable business models.

03

Industry News

1. CPCA: In May, the sales of pickup trucks in the market were 45,000 units, a year-on-year decrease of 1%.

On June 27, the China Passenger Car Association (CPCA) stated that in May 2024, sales of pickup trucks in the market were 45,000 units, a year-on-year decrease of 1% and a month-on-month increase of 2%, at a medium-to-high level in the past five years. From January to May this year, pickup truck sales reached 218,000 units, achieving a year-on-year increase of 4%.

2. CPCA: From June 1 to 23, the retail sales of the new energy vehicle market were 534,000 units, a year-on-year increase of 19%.

On June 26, according to CPCA data, from June 1 to 23, retail sales in the passenger vehicle market were 1,087,000 units, a year-on-year decrease of 12% and a month-on-month increase of 2%. During the same period, retail sales in the new energy vehicle market were 534,000 units, a year-on-year increase of 19% and a month-on-month increase of 7%.

3. Liu Yingzi, President of the All-China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce: Excessive internal competition in the industry is still intensifying, and dealers are facing tremendous pressure.

On June 25, at the China Automobile Circulation Industry Conference, Liu Yingzi, President of the All-China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, stated that this year, positive factors in China's economic operation have been continuously accumulating, growth momentum has continued to strengthen, and the overall national economy has continued to recover and improve. The development of China's automobile industry has also maintained a growth momentum. However, market competition using price as the main means is still continuing, and excessive internal competition in the industry is still intensifying. Under the influence of various factors such as inverted car prices and declining brand sales, auto dealers are facing tremendous pressure in their business operations, and anxiety is spreading continuously.

04

Company Updates

1. SAIC and Volkswagen signed a series of agreements to jointly develop multiple plug-in hybrid and pure electric vehicle models.

On June 27, Volkswagen Group, SAIC Motor, Volkswagen (China) Investment Co., Ltd., Volkswagen (China) Technology Co., Ltd., and SAIC Volkswagen signed multiple technical cooperation agreements related to new product projects for SAIC Volkswagen. The content includes technical cooperation agreements for the development of three plug-in hybrid models and two pure electric models in China. Both Chinese and German parties will jointly "empower" the joint venture with technology, opening a new chapter in joint cooperation. It is expected that starting from 2026 and spanning 2030, multiple plug-in hybrid and pure electric vehicle models developed through cooperation will be gradually launched into the market.

2. Wenjie M9 has achieved cumulative orders exceeding 100,000 units in six months since its launch.

On June 26, Hongmeng Zhixing announced that Wenjie M9 has achieved cumulative orders exceeding 100,000 units in six months since its launch. On May 31, Yu Chengdong, Executive Director of Huawei, Chairman of the Terminal BG, and Chairman of the Intelligent Vehicle Solutions BU, revealed that Wenjie M9 had achieved orders exceeding 90,000 units in five months since its launch.

3. NIO announces its All-Life-Cycle Quality Management System ATQ.

On June 26, NIO announced its All-Life-Cycle Quality Management System ATQ, aiming to ensure that products are fully controlled and managed at every stage from definition, design, development, manufacturing, to usage, and to continuously and efficiently improve. NIO's founder, Li Bin, explained why NIO formulated ATQ: In the era of intelligent electrification, automobile products themselves have undergone tremendous technological changes, including intelligent hardware, intelligent software, and data closed-loop applications integrating terminals and clouds, making the entire vehicle extremely complex. However, regardless of how intelligent and electric the vehicle becomes, safety must not be compromised.

4. The automotive industry has won three second prizes for National Science and Technology Progress Awards.

On June 24, the National Science and Technology Conference, the National Science and Technology Awards Conference, and the Academician Conference of the Chinese Academy of Sciences and Chinese Academy of Engineering were held in Beijing. The "Independent Research and Development and Large-scale Industrialization of Key Components and Complete Vehicle Platforms for New-generation Electric Vehicles," led by BYD and nominated by the China Society of Automotive Engineers, the "Key Technologies for R&D and Manufacturing of Power Batteries for Large-scale Industrialization," led by CATL, and the "Key Technologies and Industrialized Applications of Intelligent Connected Vehicle-Road Systems and Trusted Testing," led by Chang'an University and nominated by Shaanxi Province, won the second prize of the 2023 National Science and Technology Progress Awards.

05

Secondary Market

Industry Performance

Industry Valuation

New Energy Vehicle Sales

06

Raw Material Prices

Spot Prices of Lithium Compounds

Prices of Cathode Materials

Electrolyte Prices

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