Tianfeng Securities: the production and sales of new energy vehicles reached a record high in June and is expected to exceed 2.4 million for the whole year.

Industry news:

(1) Intelligent: (1) based on the vehicle gauge-level hybrid solid-state lidar, Wesai Technology has reached a cooperation with the ideal car. (2) Cambrian autopilot chip: 7nm process, computing power over 200TOPS.

(3) the Chinese self-driving company AutoX officially released the fifth generation self-driving system AutoXGen5, in Shanghai and has entered the stage of mass production.

(2) electrification: (1) the production and sales of new energy vehicles in China reached an all-time high in June, and the China Automobile Association raised its annual forecast to 2.4 million. (2) starting at 276000 yuan, Tesla Model Y standard continued version of the model will be launched. (3) Xiaopeng officially landed on the Hong Kong Stock Exchange and said it would consider going back to A for listing in the future.

(3) other: (1) GAC GROUP spent 800 million yuan to build cars with Huawei and plans to produce them in 2023. (2) Panasonic CEO said that the sale of shares in Tesla would not affect the cooperation between the two sides. (3) the Jetway brand declares its formal independence and publishes the product plan.

Market review: this week, the automotive sector rose 5.08%, Shanghai and Shenzhen 300 fell 0.23%, the automotive sector is higher than the market 5.31PCT. Of this total, passenger cars rose 7.79 percent, auto parts rose 2.77 percent, commercial buses rose 2.56 percent, commercial trucks rose 4.48 percent, and automobile services rose 0.34 percent. Among the better performing companies in the automotive sector are Fulin Seiko (+ 54.38%), ST Baling (+ 27.62%), ST Lion (+ 24.79%), Chinachem Technology (+ 21.95%), GAC GROUP (+ 20.73%).

Investment advice:

Domestic production and sales of new energy vehicles are growing rapidly month by month, and the permeability is expected to accelerate in the future. In addition to domestic new forces building cars in full swing, traditional automobile giants such as Volkswagen and Ford are also accelerating the transformation of electrification. Technology giants such as Huawei, Baidu, Apple, Xiaomi and other technology giants have laid out a new battlefield of "car building" one after another. multi-party entry is expected to accelerate the electrified and intelligent reform of the automotive industry, and we are firmly optimistic that the automotive electric intelligence industry chain is expected to become an important investment main line throughout the next few years.

(1) Private independent brands with long-term development potential: [great Wall Motor (Atreh), Geely (H)];

(2) to do full stack research and development and lay out the new forces of intelligent electric: [Xiaopeng Automobile, ideal Automobile, Xilai]; (3) Mechanism and system reform, break up the state-owned independent car enterprises operated separately by the smart electric plate: [GAC GROUP, Changan Automobile, SAIC];

(4) Huawei intelligent automobile industry chain has medium-and long-term investment value:

(1) car companies that jointly build sub-brands with Huawei HI: [GAC GROUP, Changan Automobile, BAIC Langu]; 2 car companies that have strategic cooperation with Huawei: [Great Wall Automobile, Geely Automobile, SAIC]; 3 three-in-one Motor + Hicar+ Audio + Huawei Smart selected car companies: [well-off shares]; 4 Huawei intelligent cockpit partners: [China Kechuangda (computer group coverage), Desai Xiwei, Junsheng Electronics];

5 Huawei Thermal Management TMS potential partners: [silver wheel shares, Sanhua Intelligence Control (covered by Home Appliances Group), Haili shares, Aotejia], etc.

(5) the parts plate pays close attention to the fundamentals and the valuation is reasonable, with the wave of electric intelligence, Davis is expected to double-click the subdivision leader: [Changshu Auto Decoration, Baolong Technology, Fuyao Glass, Fulin Seiko, Aikodi, Xingyu shares, Top Group, Berkeley, Huayu Automobile, Junsheng Electronics] and so on.

Risk tips: macro-economic recovery is not as expected, the prosperity of the car market is declining, the process of automobile electric intelligence is not as expected, and so on.