Huachuang Securities released a research report saying that automobile fundamentals and stock prices are still in the process of bottoming out: 1) Domestic demand: Affected by the base effect, the decline in the third and fourth quarter will gradually narrow, but it cannot be confirmed that it is on the right side of the upward trend. 2) Raw materials: Battery prices are expected to fall next year, and chip costs will continue to be under pressure. 3) Exports: Against the backdrop of increased EU policy risk+gradual resolution of capacity, the data continues to grow, and passenger car exports are expected to rise again to around 10 million vehicles throughout the year. 4) Valuation: From the end of 2Q25 to 1Q26, sector adjustments were mainly due to a decline in profit expectations. 2Q26 shifted to a contraction in valuation, and institutional holdings declined sharply. Recently, they have also rebounded due to the seesaw effect of market capital, but the bank expects sector stock prices to lag behind fundamental inflection points under such circumstances. Tram trips overseas have brought a new narrative to vehicle investment, but in the context of domestic sales, raw materials, and technology, the story of going overseas has not been priced, and it is expected that it will be repaired in the future.

Huachuang Securities released a research report saying that automobile fundamentals and stock prices are still in the process of bottoming out: 1) Domestic demand: Affected by the base effect, the decline in the third and fourth quarter will gradually narrow, but it cannot be confirmed that it is on the right side of the upward trend. 2) Raw materials: Battery prices are expected to fall next year, and chip costs will continue to be under pressure. 3) Exports: Against the backdrop of increased EU policy risk+gradual resolution of capacity, the data continues to grow, and passenger car exports are expected to rise again to around 10 million vehicles throughout the year. 4) Valuation: From the end of 2Q25 to 1Q26, sector adjustments were mainly due to a decline in profit expectations. 2Q26 shifted to a contraction in valuation, and institutional holdings declined sharply. Recently, they have also rebounded due to the seesaw effect of market capital, but the bank expects sector stock prices to lag behind fundamental inflection points under such circumstances. Tram trips overseas have brought a new narrative to vehicle investment, but in the context of domestic sales, raw materials, and technology, the story of going overseas has not been priced, and it is expected that it will be repaired in the future.