Automotive and auto parts industry: Medium and heavy trucks maintained a high year-on-year growth rate

In December, the auto industry sold about 3.057 million vehicles, up 9.8% from a year earlier. Sales of narrow passenger cars were 2.608 million, up 11.1% year on year; Commercial vehicles sold 385,000 units, up 12.1 percent from a year earlier.

The industry as a whole outperformed the market, and the valuation of the vehicle and parts sector fell by 4.6% in December, outperforming the CSI 300 index (down 6.4%) by 1.8 percentage points. The valuation of the vehicle sector and the auto parts sector has declined from the end of November.

Automotive industry: Sales of medium and heavy trucks increased by 37.8% year-on-year Passenger cars: Sales of narrow passenger cars increased by 11.1% year-on-year in December. In terms of market segments,SUV maintained a high growth rate, with a year-on-year increase of 36.3%; MPV sales increased 7.1% year-over-year; Car sales fell 2.1 per cent from a year earlier; Sales of micro customers fell 18.7 percent year-on-year.

Commercial vehicles: medium heavy truck sales increased by 37.8% year-on-year, continued to maintain a high growth rate, medium heavy truck and macroeconomic correlation is high, stable growth on medium heavy truck or have a positive impact, over the limit of new regulations is expected to stimulate medium heavy truck sales increase, according to our grassroots research, mainstream heavy truck companies sufficient orders, production capacity moderate release, medium heavy truck recovery market is expected to extend; Light trucks rose 11.5% year on year; Large and medium passenger increased by 43.1% year-on-year, of which large and medium bus sales increased by 90.5% year-on-year, and seat bus sales of core profit points fell by 14.0% year-on-year.

1. Gf Auto raw material Cost Index: In December, the auto raw material cost index rose by 92.0% year-on-year, up 11.9% month-on-month, and the cost of raw materials recovered but still maintained a low level. Among them, the raw material cost index of cars and heavy trucks rose by 89.5% and 88.8% respectively.

2. Gas and diesel price index: Represented by the 20 provinces and cities in our statistics, the national gas and diesel price ratio in December was about 59.6%, a slight increase from the previous month. Among them, there are 4 provinces and cities where the gas-wood ratio is above 70%, 4 between 65-70%, 3 between 60-65%, and 9 below 60%. In addition to the price of gas and fuel, whether local subsidy policies and gas subsidies are introduced is another key factor affecting the demand for natural gas vehicles. We believe that in the case of stable macroeconomic growth and the rise of passenger car demand in the central and western regions, the high prosperity of the automobile industry is expected to be maintained, and the valuation level still has room for improvement. The traditional cyclical leader benefits from the higher industry prosperity, and the sales volume and profitability are expected to double. At the same time, in the case of higher overall profitability of the industry, the enthusiasm of enterprises to research and development is higher, and the possibility of successful transformation is greater. 17 years of automotive industry cycle stocks and growth stocks are expected to achieve good performance :1, the industry prosperity is expected to maintain, the leader is expected to welcome Davis double-click, we recommend China National Heavy Duty, Weifu High-tech, SAIC, Geely Automobile, Hua Yu Automobile, Great Wall Motor, Changan Automobile, Jiangling Automobile, it is recommended to pay attention to Foton Automobile, Weichai Power; 2, new energy vehicles should focus on plug-in hybrid, energy-saving vehicles focus on hybrid possible opportunities, we recommend Jianghuai Automobile, Jingwei Shares, Fulin Seiko, Corion; 3, intelligent vehicles into the fast track of development,V2X is expected to enter the development window, we recommend Wanliyang, Del shares, Hua Yu Automobile, Top Group, Shuanglin shares, China Automotive Research; 4, State-owned enterprise reform is still one of the main lines of investment, we recommend Fuao shares, China National Heavy truck, Yunnei Power.