[Opportunity Discovery]New energy vehicles have a good start in January and sales remain high_ Securities Times

According to the data of the China Automobile Association, in January 2022, the automobile production and sales situation was generally stable, with a month-on-month decline and a slight year-on-year growth. Among them, the performance of new energy vehicles remained outstanding and continued to maintain a rapid growth momentum year-on-year. In January, the production and sales of automobiles were 2.422 million and 2.531 million respectively, down 16.7% and 9.2% month-on-month, and up 1.4% and 0.9% year-on-year. In January, the production and sales of new energy vehicles decreased month-on-month, and continued to maintain rapid growth year-on-year, with 452,000 and 431,000 completed respectively, down 12.6% and 18.6% month-on-month, and up 1.3 times and 1.4 times year-on-year.

Ping An Securities pointed out that new energy vehicles are off to a good start, and sales remained high in January. In January 2022, the domestic sales of new energy vehicles were 431,000 units, a year-on-year increase of 135.8% and a month-on-month decrease of 18.6%; the penetration rate of new energy vehicles in January was 17%, an increase of 10pct year-on-year and a decrease of 2pct month-on-month. On the whole, new energy vehicles ushered in a good start at the beginning of the year. The market still maintained a high degree of prosperity in January, and the impact of seasonal factors on the market was relatively limited. Under the circumstance that upstream raw material prices are rising and downstream demand continues to be strong, some car companies have already begun to raise product prices. In the future, it is still necessary to pay close attention to the impact of price increases on consumer demand and the impact of core shortages on the supply side of car companies. It is estimated that domestic sales of new energy vehicles will be around 5.5 million in 2022.

The agency believes that with the strengthening of policies and car companies, the penetration of new energy vehicles in the global market is ushering in a new round of acceleration, and the industry boom continues to rise. It is recommended to pay attention to the main line of new forces represented by Tesla, as well as the catch-up process of new models such as Volkswagen, and recommend leading and second-line elastic targets. In terms of vehicles, we strongly recommend Great Wall Motors, Geely Automobile and Xiaopeng Motors; in terms of battery materials, we recommend CATL, Dangsheng Technology, and Shanshan; in terms of motor electronic control, we recommend focusing on Wolong Electric Drive and Huichuan Technology; lithium battery equipment In terms of lithium and cobalt, it is recommended to pay attention to Huayou Cobalt and Shengxin Lithium Energy.