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2026-09-28 11:30:40 Discussions among investors at the annual investor forum held in Hong Kong recently mainly focused on costs, production capacity, policies and demand in China's automobile and auto parts sectors, CLSA said in a research report. Lithium price volatility helped ease market concerns over battery costs, while persistently high oil prices continued to suppress demand for ICEVs and drive higher penetration of EVs at home and abroad. Investors were also concerned about the possibility of cuts to China's export tax rebate policies, but CLSA believed localization, overseas capacity ramp-up and new technology upgrades will continue to strengthen the earnings resilience of leading OEM automakers. CLSA noted that BYD COMPANY (01211.HK) has prioritized overseas localization in its globalization strategy, targeting sales of 4.7 million vehicles this year, of which overseas sales are expected to reach 1.9 million vehicles. The second-generation Blade Battery and flash-charging technologies were estimated to expand into global markets. Management was also confident of maintaining net profit per vehicle overseas at about RMB20,000. CLSA assigned a High Conviction Outperform rating with a TP of HKD120. CLSA believed export sales will remain the key growth driver for automakers. Among them, LEAPMOTOR (09863.HK)'s overseas production capacity was estimated to elevate to 300,000 vehicles by 2028, and the company plans to establish two factories in Spain, preferring an asset-light model to expand into the European market. CLSA assigned an Outperform rating to LEAPMOTOR with a TP of HKD60. Overseas deliveries of XPENG-W (09868.HK) were foreseen to reach about 40,000 vehicles in 4Q26, and CLSA assigned an Outperform rating with a TP of HKD80. In addition, CLSA expected GWMOTOR (02333.HK) to continue diversifying its overseas footprint, maintaining an Outperform rating with a TP of HKD15. MINTH GROUP (00425.HK) reiterated that it remains resilient against tariff and IAA-related uncertainties. CLSA expected its robotics business to become the main revenue driver for new businesses in 2H26, believing the company is building resilience against geopolitical risks. CLSA assigned an Outperform rating with a TP of HKD43. ~ AASTOCKS Financial News Website: www.aastocks.com | |