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| HSCEI1 | 8,260.15 | -13.95 | 54.80B |
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2026-11-09 15:01:15 Citi released a report updating fund flows in China's auto supply chain, noting that CATL (03750.HK) H shares traded at a 19% premium to the unweighted average P/E ratios of BYD COMPANY (01211.HK) and FUYAO GLASS (03606.HK) H shares last Friday (6th), widening from 15% in the previous week. For A shares during the same period, the premium indicator peaked and stabilized in early September, with the discount narrowing to 24% last week from 28% in the previous week. The broker stated that FUYAO GLASS can be regarded as a benchmark for the valuation floor of major auto parts suppliers. Its current P/E ratios for H shares and A shares stand at 10x and 12x respectively, close to 10-year trough levels. CATL H shares' premium over the unweighted average P/E ratios of BYD COMPANY and FUYAO GLASS H shares has narrowed significantly from 130% at the end of June to the current 19%. The average selling price of lithium carbonate fell to around RMB93,000 per tonne in early November, down about 2% WoW. The broker views lithium prices as an indicator of future battery demand. Regarding battery market share, CATL's market share in NEV battery installations declined from 49.8% in Jan 2026 to 40.9% in Sep 2026. Citi believes that with low P/E ratios and solid dividend yields, FUYAO GLASS, YUTONG BUS (600066.SH) and SINOTRUK (03808.HK) are more defensive and less volatile than automakers and battery manufacturers. For individual stocks, Citi gave BYD COMPANY (01211.HK) H shares a TP of HKD114 and BYD Company (002594.SZ) A shares a TP of RMB100, with a Buy rating. CONTEMPORARY AMPEREX (300750.SZ) A shares were assigned a TP of RMB479, while its H shares received a TP of HKD732, with a Buy rating. FUYAO GLASS (03606.HK) H shares were assigned a TP of HKD66, while FUYAO GLASS (600660.SH) A shares received a TP of RMB63, with a Buy rating. SINOTRUK (03808.HK) was given a TP of HKD55 with a Buy rating. YUTONG BUS (600066.SH) was assigned a TP of RMB41.7 with a Buy rating. (da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |